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Wednesday, November 19, 2014

Deduction Series: Job Hunt Expenses

Are you considering a new job in your current line of work?  If so, the costs associated with your job hunt may reduce your income taxes!

In order to qualify, expenses must be incurred while searching for a job in the field in which you are currently employed.  You may deduct job search costs that are in excess of 2% of your adjusted gross income (AGI), and you must itemize your deductions when you file your income tax return.

Among the costs you can deduct are:

Resume Costs – Includes the cost of preparing, printing and mailing your resume.

Placement Agency Fees – Includes agency fees you pay while looking for a job in same occupation.
 
Travel and Transportation Expenses – Includes expenses for travelling to a new area to look for a job in your current field.  The trip must be for the primary purpose of looking for a job.  You should track your time and make sure that your time was primarily devoted to your job search to ensure the travel costs qualify.   If you use the standard mileage rate to compute your auto expenses, the 2014 rate is 56 cents per mile.




Honorine M. Campisi, CPA

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