Tax Tip 2016: Deduct Job-Hunting Expenses

published 6 February 2017

If you looked for a job in 2016 in the same line of work as your current or most recent profession, you can deduct some of your costs. Qualifying expenses can be written off even if you didn't land a new job.

Deductible costs include transportation expenses incurred as part of the job search, including cab fares, parking, tolls and 54 cents a mile for driving your own car. You can also write off food and lodging if your search takes you away from home overnight. Don’t forget fees paid to an employment agency, as well as costs to print resumes and business cards.

You’ll need to itemize to get the tax break, and such expenses can be deducted only to the extent that your total miscellaneous expenses exceed 2% of your adjusted gross income. Job-hunting expenses incurred while looking for your first job don't qualify.

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To learn more about miscellaneous deductions, see IRS Publication 529.

Check out all 23 commonly overlooked tax deductions.

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McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.