To deduct the costs of searching for a job, you have to itemize your deductions rather than taking the standard deduction.
There are very specific requirements for taking deductions for job search expenses.
The following questions and answers can help.
Can I deduct my costs of looking for a new job in my current line of work?
Yes, you can deduct certain expenses for searching for a new job in your current occupation.
There are some restrictions on your deductions and you have to itemize rather than take the standard deduction.
Also, your expenses are not deductible if there was a substantial break between the end of your last job and the time you begin looking for a new one.
Do I have to get a new job to deduct my expenses?
No, you do not have to actually get a new job, as long as the one you were looking for was in your current line of work.
Can I deduct the cost of looking for a job in a new line of work?
No, you cannot deduct expenses for searching for a job in a new occupation.
I just graduated from college. Can I deduct my job search expenses?
No, you cannot deduct expenses for searching for a new job in an occupation different than your current work.
However, if you just graduated from college and were already working in your current line of work, you job search expenses might be deductible.
Are my expenses 100% deductible?
No, your expenses must exceed 2% of your Adjusted Gross Income (AGI) before they become deductible.
However, these expenses can add to other miscellaneous expenses that are subject to the 2% threshold to get you over the limit.
Are any computer expenses considered deductible as job seeking expenses?
Yes, the cost of computer expenses directly related to your job search in your current occupation can be included.
Can I deduct the cost of my home office for my job search?
No, the cost of your home office might be deducted as an expense for a trade or business, but not for searching for a job.
Is there a deduction for mileage when searching for a job?
Yes, mileage is a deductible expense when searching for a new job in your current line of work.