The IRS frequently issues tips to taxpayers on various topics. One topic of interest is tax benefits for job seekers. With so many people in the job market, the IRS feels that is imperative for job seekers to understand the tax benefits related to their job searches.
Job seekers are able to deduct most costs incurred during their job search if the costs are incurred for a job within the same occupation. Eligible expenses include:
- Employment or outplacement agency fees
- Travel expenses incurred while looking for a job
- Mailing copies of resumes
A key point to remember is that these expenses can only be incurred for a job in your current occupation and the costs cannot be for a first time job seeker.
More information is available by reading IRS Publication 529, miscellaneous expenses.