Deductions for Job Searches

Under the present tax law one can only deduct job search costs when the search is for a job in the same line of work. Here are some of the deductions and criteria for deductibility: (1) the expenses must be spent on a search for the same line of work; (2) outplacement agency fees and resume fees are deductible; (3) travel expenses may be deductible; (4) first time job search expenses are not deductible; and (4) expenses are not deductible if there is a substantial break between the last job and the search. One should claim job search expenses under “miscellaneous itemized deductions.” These are subject to the 2% of AGI limitation.