If you are searching for a new job within the same profession, even if you’ve been out of work for a period of time, you can deduct a number of expenses on your 2012 Tax Return. You get a deduction to the extent that your total of miscellaneous deductions exceeds 2 % of your Adjusted Gross Income. If the total of your miscellaneous expenses fall short of 2 % of your Adjusted Gross Income, you cannot deduct any of these items.
Here are some deductible items:
- Expenses for résumé preparation services, printing and mailing to prospective employers
- Career counseling costs and any employment agency fees you paid for
- Tuition for classes that maintain or improve the skills required for your present job, for example: a Graphic Designer takes a website development course
- Moving costs for a new job at least 50 miles away from your home may also be deductible
- Subscriptions to magazines, self-help books and other publications that are related to your work
- Dues you pay to a union or a professional organization in connection with your employment
- Clothes you need for interviews. Once you get the job, uniform or wardrobe expenses can be deducted as well
- The cost of local and long distance telephone calls to prospective employers
- Traveling expenses when traveling to and from the areas where you search for a new job
You cannot deduct these expenses if:
- You are looking for a job for the first time
- You may NOT deduct travel expenses when searching for a job in a new occupation
- You cannot deduct your job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one
For more information about job search expenses, see IRS Publication 529, Miscellaneous Deductions . To determine your deduction, use Schedule A, Itemized Deductions ( PDF) This publication is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).