Looking for a new job? Your candidates certainly are. Here are some tax tips to include in your candidate newsletter.
Resume preparation: You may deduct costs associated with the preparation of your new resume, if you are searching for a new job in your present occupation.
No breaks: You are not allowed to deduct job search costs, if there was a substantial break between the end of your last job and the time you began seeking a new job.
No first timers: You cannot deduct job search costs, if you are seeking a job for the first time.
Searching in your current occupation: To qualify for a deduction, your expenses must be spent on a job search in your current occupation. You may not deduct expenses you incur while looking for a job in a new occupation.
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No double dipping: You may deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. If your employer reimburses you for employment agency fees, now or later, you must include the amount you received in your gross income, up to the amount of your tax benefit in the earlier year.
Calculate miscellaneous itemized deductions: Check the IRS website or your tax professional to determine if your job search expenses, combined with other miscellaneous expenses, have exceeded a certain threshold. This is because job search costs are considered a miscellaneous itemized deduction. The amount of your miscellaneous deduction that exceeds 2% of your adjusted gross income is deductible.
