- Schedule A
- Travel Expenses
- Résumé Preparation
- Job-Placement Services
- Unemployment Income
- Health Insurance
If you are looking for work, some of the expenses you incur may be tax-deductible, provided that you are looking for work within the same field. Unfortunately, expenses incurred when searching for a job in a new field or a first job are not tax-deductible.
If you are an employee, job-search expenses are deducted as miscellaneous itemized deductions on Schedule A. Thus, you have to itemize your deductions to gain any benefit. On top of this, miscellaneous itemized deductions are only deductible to the extent that they exceed 2% of your adjusted gross income. Self-employed individuals can deduct expenses related to acquiring new business on Schedule C.
If you travel outside your tax home (where you normally live and work) overnight, you may be qualified to deduct, in addition to the auto travel expenses described above, the full cost of overnight lodging and of various forms of transportation (air, bus, train and more), as well as half the cost of meals.
Job-Placement Services – You can generally deduct the fees paid to job-placement agencies when looking for a job.
A few additional tax issues might apply to your situation:
Health Insurance – If you acquired your insurance through a marketplace, and if your premiums are subsidized with the advance premium tax credit, it is important that you report any changes in circumstances to the marketplace; this includes increases or decreases in income, changes in eligibility for other coverage and changes of address. Advance payments are paid directly to your insurance company to lower the out-of-pocket cost for your health insurance premiums. Reporting changes will help you get the proper type and amount of financial assistance so that you can avoid getting too much or too little in advance.
If you have questions about job-search expenses or other issues related to changing employment, such as pension-plan rollovers and moving-expense deductions, please give this office a call.