Are job-search expenses tax-deductible?
With the unemployment rate at 9.9 percent*, college graduates may be looking longer than anticipated. However, they shouldn’t be discouraged; the economy added 260,000 jobs in April. New college graduates with relevant work experience may be eligible to claim job-search expenses in their present trade/profession. Only items that can be used exclusively for the job search are tax deductible, which means haircuts and clothing are not eligible. These are eligible deductions: • Resumé development • Professional placement services • Unreimbursed mileage, airfare and hotel expenses for interview travel. After work has started, expenses for unreimbursed items necessary for working, such as computers and mobile phones, may be eligible tax deductions. To deduct job-related expenses, the taxpayer must itemize deductions. It is beneficial to itemize tax deductions if they total more than the standard deduction ($5,700 for a single taxpayer for 2010). Also, only the portion of job deductions and o
