If you're out of work or if you're just looking for new employment, did you know that you can write off some of your expenses on your tax return? The IRS allows you to deduct some of these relevant costs as a deduction on Schedule A. The key to claiming these expenses is finding out which job search costs you can claim and how to report them on your return. Here are a few job search tax deduction tips you can use to file your upcoming tax form.
Eligibility Requirements

Before you start adding up your expenses you'll have to make sure you meet the eligibility requirements to claim your job search costs. First, you must be looking for work in the same line of employment you have now. If you're changing industries or searching for your first job, you won't be able to write off your deductions. If you're unemployed you can still claim the expenses but you must be searching for a job in the same field as your previous job.

Types of Deductible Expenses

You can claim almost any job search-related expense as a deduction. This includes the cost of typing resumes, printing them out and mailing them to prospective employers as well as any fees you pay to an employment agency to help you find a new job. If you take a trip primarily to search for employment or attend an interview, you may be able to claim the cost of your travel as an expense. You can also write off the cost of long-distance phone calls to potential employers. Be sure to keep a record of these expenses so you can back up your claim on your return.

Reporting Your Deduction

When you're ready to claim your job search tax deductions, you'll need to report your expenses on IRS Schedule A "Itemized Deductions". The IRS only allows you to deduct the amount of your costs that are more than two percent of your AGI (adjusted gross income). This means that if your adjusted gross income is $20,000, you'll only be able to deduct the amount of your job search expenses that exceed $400 (20,000 x. 02). On Schedule A, you'll list these deductions as miscellaneous expenses on line 28.

While job hunting can be a difficult situation, you can ease some of the financial pressure by claiming your eligible deductions on your taxes. If you need help understanding the tax laws relating to deducting your job search expenses or tax preparation help, consult an experienced tax resolution professional for assistance.