Tax Deduction for Job Search

Q. A friend of mine told me that I can deduct the expenses related to my job search off my 2010 taxes.  Is this true? I figured since you are an industry expert, you would know the answer.  Thank you.

WS, Nyack, NY

A. In fact, your résumé and cover letter, along with certain items associated with your job search, may be tax deductible!

According to H&R Block, job search expenses can be deducted as miscellaneous itemized tax deductions if you look for a job in the same field at the same level as the one you left. The job search expenses are deductible even if you don't get the job.

You can deduct job-seeking expenses as long as the amount of all miscellaneous itemized tax deductions is more than 2% of your adjusted gross income (AGI). To figure your tax deduction, subtract 2% of your AGI from the total amount of these expenses.

Job search expense deductions are also subject to the overall limitation on itemized deductions based on income threshold amounts.  For more information on the details of this deduction, please contactyour tax advisor.

Even when career services are not deductible, having a résumé professionally written can be cost effective – especially if you interview and receive a job offer sooner than you would have had you continued to use a résumé that was sub-standard. 

This can save the average job seeker thousands of dollars in lost wages. Your chances of negotiating a better salary go up exponentially when you demonstrate a quality presentation – both in your professional appearance and any job search documents you use.

If you have a question you would like to Ask Deb, please email her at Debra@careersdonewrite.com.