Are job search expenses deductible?
(Revised November 2012)
If you itemize your tax return your job search expenses may be deductible, depending upon whether or not the expenses relate to a search in the same line of work. If the search is in the same line of work that you are (or previously were) in the expenses are deductible as a miscellaneous deduction. If, however, the job search involves a new line of work or if you never had a job the expenses are not deductible.
'Job search' deductions fall into the same category as investment expenses, employee business expenses, and tax preparation expenses; all of these are classified as 'miscellaneous deductions.' Generally, 'miscellaneous deductions' can be deducted on your tax return to the extent that the sum of your miscellaneous deductions exceeds 2% of your total income. This type of expense, though, is not deductible to the extent of any reimbursements that you receive.
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