Job search expenses – are they deductible?
If you itemize, your job search expenses may be deductible. It depends on whether or not the expenses relate to a search in the same line of work. If the seach is in the same line of work that you are (or previously were) in, the expenses are deductible as a miscellaneous deduction. If 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 exceed 2% of your total income. Also, this type of expense is not deductible to the extent of any reimbursements that you receive.
