The Roni Deutch Tax Center – Tax Help Blog published another great tax deduction of the week entry earlier this week. The new article explains deductions available for certain job hunting expenses. You can find a section of the post below, or check out the full text at RDTC.com.
Looking for a new job? In addition to the deduction available to taxpayers who have to move for a new job, you can also deduct qualifying expenses related to your search for employment.
2% Rule
If you are looking for a position in the same line of work that you are currently in, then many of your expenses can be deducted. You do not need to be out of work to have an expense qualify, but your deduction is limited by the 2% rule. Therefore, you can only deduct expenses that exceed 2% of your income.
IRS Restrictions
According to IRS Publication 529, you cannot deduct your job hunting expenses if:
- You are looking for a job in a new occupation,
- There was a substantial break between the ending of your last job and your looking for a new one, or
- You are looking for a job for the first time.
