Tax Tips for the Unemployed

You already know that networking can help you find a new job. But you might not know that the IRS offers an assist, too. You can deduct many of your job-hunting expenses. That’s not that surprising, since it’s in the Internal Revenue Service’s best interest to have you earning taxable income. Uncle Sam’s tax help, however, does have its limits. Here’s what you need to know.

Itemizing required
You must itemize deductions on Schedule A to count your job-hunting expenses. That task is further limited by a threshold amount you must meet. Your job search costs are considered miscellaneous expenses. As such, they are deductible only when they, and all other allowable expenses in this category, are more than 2 percent of your adjusted gross income.