This article originally appeared in the Boston Broadside, a publication of the Boston Chapter of the Society for Technical Communication.

HAPPY HUNTING

Tax Breaks for Job Hunters

by Brett W. F. Randolph

While most self-employed individuals are aware of expenses that can be written off in connection with seeking more work for their independent businesses, many employees overlook these deductions.

Did you look for a new job in your present occupation last year? If you did, many of the costs associated with seeking a new position may be tax deductible, even if you did not find a new position. Here are some deductible items to remember:

Your Resume: Costs for typesetting, printing, faxing or mailing your resume to prospective employers are deductible.

Telephone Calls: Although the cost of your basic monthly service is not deductible, you can deduct long distance and toll calls associated with your job search. You may also be able to deduct charges for optional services, such as call waiting, call forwarding and call answering, in proportion to their job hunting use from your home. If you have a second line that is used exclusively for job-related business (for example, as a full-time contract employee might have), you can deduct all of the charges for that line.

Self-employment: Did you investigate self-employment? The costs associated with investigating or attempting to start your own business in your current profession may be tax deductible.

Career Counseling: If you paid for counseling in order to find employment in your current profession, the expenses are deductible.

Travel and Transportation: Automobile mileage, parking and tolls would be deductible to the extent that they are directly related to your job search; to attend interviews, for example. The same applies to airfare, hotel, meals and other unreimbursed costs associated with traveling exclusively to look for a new job. If your trip is primarily to hunt for a new job, but you also engage in personal activities, the expenses for travel to and from the area are fully deductible, but the expenses while away are deductible only in proportion to your time spent job hunting.

Publications and Job Listing Services: If you subscribe to publications or job listing services that you use exclusively for your job search, the costs are deductible.

Keep in mind that you are eligible for most of these deductions only if you are seeking a new job in your current occupation. Costs associated with seeking a job in a different profession (or your first job) are not deductible. Of course, you should review every item with your accountant or a qualified tax professional.
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Brett Randolph is a partner in RANDOLPH ASSOCIATES, INC. in Cambridge, Mass. He has placed documentation and training professionals in contract and permanent positions since 1973.