Summer isn’t all about rest or fun in the sun. For some of you, it’s about seizing the opportunity to make some extra money with the abundance of time you have available now.
It’s not uncommon for people to get a second part-time job, or find an entirely new full-time position, during the Summer. What isn’t well-known is the fact that certain expenses you incur in your job search are deductible tax credits.
Here are some guidelines on how your seasonal job hunt can save money come tax season.
Qualification for Job Search Deductions
As with anything involving tax credits, some requirements need to be met to qualify. If there weren’t, a process such as this could get abused. To claim a deduction:
- You must have enough tax deductions to itemize them
- The job must be in the same career field as your last employment
- There isn’t a significant amount of time passed between your last job and searching for a new one
Important: You need to meet each of these criteria - not just one or two.
Expenses that are Deducted
Spending money may be the last thing on your mind when it comes to securing a job, but to gain an edge over the competition, you might need to invest in yourself. Here a just a few job search expenses you can claim:
- Resumes - You can deduct the printing cost for resumes and even the costs for resumes professionally created
- Career Development - If you attend any career coaching or seminars, you could deduct those costs. Any charging fees from employment agencies are deductible as well
- Travel - You can claim out-of-pocket travel expenses as long as the trip’s primary purpose is to find a job in the same career field
If you’re a first-timer looking for a job, then you don’t meet the principal qualifications for a tax claim - the same is true if your goal is to change careers such as leaving retail for construction. Any expenses that are reimbursed by a potential employer are nondeductible - that goes for any travel or other costs towards interviews and employment.
As with any situation involving tax credits, the key is to have impeccable records of all your expenses - keep receipts, make note of everything you did, and be prepared to explain how costs contributed to your job hunt. Consult a local tax professional for further details about your tax claims.
Don’t worry about unnecessary stress with getting your tax deductions in order during tax season. E-file IRS Form 4868 with ExpressExtension.com to get extra time to file your personal tax return. Within minutes, you can quickly complete the form and receive approval from the IRS for six more months of filing time - for single and even joint returns!
Call our live, US-based support team in Rock Hill, South Carolina, for any assistance or questions regarding the e-filing process. We’re available at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also send us an email 24/7 through support@ExpressExtension.com.