Enlist the IRS in Your Job Search

It is in the government’s best interest to keep its citizens employed as evidenced in the IRS tax code.
Finally, you can get a leg up when tax season hits. For instance, if you drive to Kinko’s, print out 50 résu-
més and cover letters, drive home, and decide to use Career Service International’s services, you can
deduct a number of these costs, including gas expenses.

There is, however, a critical IRS restriction to consider:

Substantial Break: The IRS never spells out what is meant by the words ‘substantial break”– this is why it
is crucial to begin your job search shortly after your last position. In addition, maintain accurate records to
present in the random chance of an audit.

The good news is you can include job-seeking expenses even if you don’t take the position. Acceptable
deductions include employment/outplacement agency costs, resume fees, and transportation expenses.

You can incorporate your job-seeking expenses on Schedule A of form 1040 beneath miscellaneous item-
ized deductions, with the total amount of miscellaneous deductions not exceeding 2% of your adjusted
gross income.

For further information, refer to IRS Publication 17, Your Federal Income Tax for Individuals or check with
your accountant.