The month of April means different things to different people. While Spring, rebirth, and the end of Winter are most common, many people associate April with paying taxes – a not-so-exciting prospect. With April right around the corner, there’s some good news for those of us searching for new jobs in the new year.
Did you know that certain expenses incurred when searching for a new job can be deducted from the taxes you owe?
Looking at page five of IRS Publication 529, under Job Search Expenses , you can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job.
You cannot deduct these expenses if:
- You are looking for a job in a new occupation,
- There was a substantial break between the ending of your last job and your looking for a new one, or
- You are looking for a job for the first time.
Employment and outplacement agency fees. You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation.
Employer pays you back. If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. (See Recoveries in chapter 12.)
Employer pays the employment agency. If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income.
Résumé. You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation.
Travel and transportation expenses. If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.
Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area.
What does that mean for you?
If you have been considering hiring a resume writer, sending resumes out via USPS, or use ClearanceJobs.com and have been considering upgrading your resume, now is the time to act.
When you spend money to assist in your job hunt, you’ll pay fewer taxes. If you have an active resume on ClearanceJobs.com, navigate to our Resume Enhancements page, purchase the upgrades you need, and print your receipt. As you fill out your tax forms, include the receipts and deduct the expenses from the taxes you owe. It’s a great way to obtain valuable services, push your job search by getting your resume noticed, and save on tax expenses at the same time.