The job market is pretty brutal these days. Millions have lost their job in the last few years and are looking for new ones. If you are in this boat, there is at least a sliver of good news. You may be able to write off some of your cost associated with finding a job.
We all need write-offs when it comes to taxes. Of course, most of us spend the time planning for them about two weeks before we have to file the actual returns. By then it is usually much too late to turn the deed. That’s why it is critical to know what you can write off throughout the year, and keep records of the same. With that in mind, let’s look closer at the write-offs for finding a job.
The first thing to know is there is a quirk about the job that you are looking for. A job is a job, right? Not according the IRS. Instead, the IRS will only let you write things off if you are looking for a job in the same occupation. If you are a human resource manager, you must be looking for a human resource job. If you start looking for a job as a salesperson, you are not going to be able to write off the costs of finding it.
What about hiring an employment agency? Can you write off any of the costs associated with that? Yes. Again, it is only allowed if they are finding you a job in the same occupation. Assuming that is the case, you can write off the cost in full.
What if you determine the area you live in is just not a good place to find a job in your occupation? Well, you are going to have to look in another location. The good news is you can write off your cost of travel to do so. The IRS pays very close attention to this write off since it is often abused as people go on vacation/job seeking trips. Make sure you can document what you did and who you met with regarding your job seeking efforts.
Losing your job is hardly any fun. Looking for a new one isn’t exactly a joy either. At least you can benefit from writing off the cost of finding it. It is a small silver lining, but a silver lining nonetheless.