Writing off job search expenses?

[Broken]

I'd like to know exactly what I can and can't write off.

 

 

Can I write off the PC I bought? I did use it heavily to aid in my search.

Can I write off gas and mileage going to and from interviews?

Can I write off vehicle maintenance during the time I was interviewing?

Can I write off my cell phone bills? I did have to up my plan quite a bit because I used a lot of minutes on the phone for potential new jobs.

Can I write off my new cell phone purchase?

 

Any other items that I can and can't write off would be helpful as well, thanks.

[Caveman_Nick]

I'd like to know exactly what I can and can't write off.

Can I write off the PC I bought? I did use it heavily to aid in my search.

Can I write off gas and mileage going to and from interviews?

Can I write off vehicle maintenance during the time I was interviewing?

Can I write off my cell phone bills? I did have to up my plan quite a bit because I used a lot of minutes on the phone for potential new jobs.

Can I write off my new cell phone purchase?

 

Any other items that I can and can't write off would be helpful as well, thanks. 

 

1279239[/snapback]

 

 

 

 

 

I'm guessing you should PM Puddy.

[theeohiostate]

You can deduct certain unreimbursed expenses you incur in looking for a new job, whether or not you are unemployed at the time of the job search, and whether or not you land a new job.

 

You cannot deduct job search expenses if:

 

You are looking for a job in a new occupation, or

There has been 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.

If you pass the "cannot" rules, then you can deduct

 

Employment and outplacement agency fees.

Costs of typing, printing, and mailing copies of your resume.

Phone and fax expenses, including long distance calls to prospects.

Travel and transportation expenses if you have to travel outside your home territory to look for, or interview for, a job. The trip must be primarily to look for a job. The term "primarily" refers to the amount of personal activity on the trip compared to the amount of time you spend in looking for work. Even if you cannot justify deduction of travel expenses you can still deduct the expenses of looking for a job while in the area. If you drive you can deduct the standard mileage rate of 36 cents per mile.

Second, the hurdle:

 

Job search expenses are classified as "miscellaneous itemized deductions." This class of deductions (which include union dues, work clothes, and tax prep fees) is only deductible from your income if you itemize deductions and only to the extent that the total exceeds two percent of your adjusted gross income.

 

Third, some advice:

 

Keep detailed records of your expenses, in case of audit, and never include expenses for which you have been reimbursed by your prospective employer.

[Puddy]

Most of this is retyped from my 2006 U.S. Master Tax Guide

 

Individuals may deduct all expenses incurred in seeking employment in the same trade or business regardless of whether or not the search is successful. Such expenses include the typing, printing, and mailing of resumes, and travel and transportation expenses. Travel and transportation expenses to and from an area are deductible only if the trip relates pimarily to seeking new employment. If the travel is primarily personal in nature, only the actual expenses of the search at the destination are deductible.

 

Expenses are not deductible if an individual is seeking employment in a new trade or business even where employment is secured. Individuals seeking their first job, entering a new trade or business, or working after a long period of unemployment cannot deduct job-hunting expenses.

 

Job-hunting expenses are deductible only as an itemized deduction on Schedule A of Form 1040, subject to the two-percent floor. (So if you don't normally itemize your deductions you can't take it anyways. If you do itemize you can only deduct the portion that exceeds 2% of your Adjusted Gross Income.)

 

Example: You made $50,000 this year from your job with no other sources of income. Assuming you itemize and you spend $1,500 in job-hunting expenses you can only deduct $500 of the $1,500. ($50,000 * 2% = $1,000).

 

 

Edit: Or what TOS said. (and I actually typed mine, man is that inefficient).

Edited January 21, 2006 by Puddy

[yo mama]

I'd like to know exactly what I can and can't write off.

Can I write off the PC I bought? I did use it heavily to aid in my search.

Can I write off gas and mileage going to and from interviews?

Can I write off vehicle maintenance during the time I was interviewing?

Can I write off my cell phone bills? I did have to up my plan quite a bit because I used a lot of minutes on the phone for potential new jobs.

Can I write off my new cell phone purchase?

 

Any other items that I can and can't write off would be helpful as well, thanks. 

 

1279239[/snapback]

 

 

 

Forget about the PC, car maintenance, and phone. You'll never get those to fly on audit. You can always play audit roulette, but know that you'd basicly be committing small scale tax fraud.

 

If you could itemize the cell phone bill, maybe, but you couldn't deduct the whole thing. Gas and mileage is a maybe as well. See Puddy's post, as it depends on what you were doing before and what type of job you were looking for.

[Broken]

Forget about the PC, car maintenance, and phone.  You'll never get those to fly on audit.  You can always play audit roulette, but know that you'd basicly be committing small scale tax fraud.

I won't claim the PC, but the phone was mainly used to seek employment. I have all my bills to prove it.

 

If you could itemize the cell phone bill, maybe, but you couldn't deduct the whole thing.  Gas and mileage is a maybe as well.  See Puddy's post, as it depends on what you were doing before and what type of job you were looking for.

 

1279275[/snapback]

 

 

 

Same type of job as before.

[Puddy]

I won't claim the PC, but the phone was mainly used to seek employment. I have all my bills to prove it.

Same type of job as before.

 

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Well you now know which boards give the best tax advice

 

[NSab]