Summer is the season for many major life changes…weddings, home purchases, and moves. Labor Day, is the time for one last summer hurrah with friends and family, and one last push for change. If some of your Labor Day weekend was spent job searching instead of barbecuing, you may be glad to learn that the expenses incurred in the process may be tax deductible. The IRS first requires that you meet three criteria in order to claim such deductions:
- You must itemize and not take standard deductions.
- Deductions must be more than 2% of your adjusted gross income.
- Job searches must be in your current or most recent occupation.
The IRS further stipulates that:
- Expenses incurred looking for your first job or for a position in a new field are not deductible.
- Employment agency fees may be deducted if you aren’t reimbursed for them. If reimbursed, they must be included in your gross income for the next tax cycle.
- Resume prep and mailings are deductible when sent to potential employers in your current field.
- Travel expenses incurred while looking for a position in your current occupation are deductible providing that was the primary purpose of your trip.
- No job search expenses are deductible if there has been a substantial break between the end of your last job and your search for a new one. (The IRS is vague on what constitutes a “substantial break” so check with your tax consultant.)
Still uncertain as to what you can or can not deduct? Still interested and willing to make a career move? Contact the Centra Team at 800 535 0076 or download our mobile app and let our personalized service, cutting edge technology and industry expertise help you find that perfect CHT, PT, PTA, OT, COTA, SLP, NP, RN, Nurse Manager, or Director of Rehab position!