The task of looking for a summer job and then actually landing a gig can be like having a full-time job all by itself. There is some good news on this front, though, as you may be able to write off some of the costs you incur that are associated with searching for and finding a summer job when filing your taxes with the IRS.
What Costs Can You Claim?
Travel is a major aspect of finding a job. Some job seekers apply at places around the block, while others travel to another city, county, state, or even country in search of employment and to be able to attend face-to-face job interviews. In addition, many employers require candidates to partake in multiple interviews during the hiring process. Car trips or those by train or plane should be primarily for the purposes of seeking employment – not for personal or leisure reasons – to qualify as potential expenses you can deduct. Some of these travel costs may include airfare, bus fares, and cab fares.
Along with travel expenses, there are a few other noteworthy costs you can claim as a tax deduction for a job search. You can write off fees that employment agencies charge to match job candidates with employers looking to hire new employees. But remember that in some cases, certain employers will actually reimburse new employees for these expenses. Resume preparation and mailing costs are deductible as well, even though most companies require job applications and resumes to be submitted online these days.
Limitations to this Tax Deduction
Just like other IRS tax deductions, there are some stipulations involved in this write-off opportunity. To qualify for it, you have to be seeking a position of employment in your current or most recent line of work. Let’s say your last job was working as a computer tech at an IT firm. You have to be looking for a similar job in the technology field to claim this deduction. If a significant amount of time has passed between when you left your previous job and when you began your search for something new, the IRS may not allow a deduction on job search costs. However, the federal tax collection agency does not specify a length of time for these scenarios. A big caveat is that you cannot write off job search costs if you are looking for employment for the first time. This is often the case for recent high school or college graduates who have completed their education and are in search of a job through which they can make their hard work in the classroom finally pay off.
Job search expenses have to be taken as an itemized deduction when filing your taxes with the IRS. These costs are classified under the “miscellaneous expenses” category. Most miscellaneous expenses you incur can be claimed as a tax deduction when this amount exceeds 2% of your adjusted gross income (AGI). To determine your deduction, use the form titled Schedule A: Itemized Deductions.
To learn more about valuable IRS tax deductions you can claim that will reduce how much you shell out to Uncle Sam each year, work with the accounting experts at 1-800Accountant. Call 1-800-222-6868 or click over to the “Services” page on www.1-800Accountant for details.