Deduction Limitations
Job-hunting expenses are only deductible when a person is looking for work in the same employment field where he or she is currently working or has most recently worked. For example, someone who is working as a nurse can deduct expenses looking for another nursing position. However, he or she could not deduct expenses looking for a job as a chef.
The amount of the deduction that a taxpayer can claim for job hunting is limited. The IRS only allows you to deduct expenses that are in excess of two percent of your annual income for expenses related to job hunting. So if you are making $30,000/yr. the first $600 in expenses is not deductible. For this reason, it is important to keep meticulous records of every job-hunting expenses in order to get above the threshold.
Unfortunately, you can’t [Read more…] about Valuable Tax Tips for Job Seekers