Job Search Expenses = MAJOR tax deduction!

Tax-DeductionsFor many job seekers, the cost of investing in career services seems hefty until they realize the return on their investment can include a shorter job search, a salary increase for $15,000, $20,000 or even more than $50,000 annually (the $50,000 increase happened to one of our clients this year – – with a nice sign-on bonus included). While the excitement of starting a new job can feel like mass pandemonium, job seekers should also remember that their job search expenses are tax deductible. That’s a greater return on your investment than you probably imagined!

The IRS’ website provides a detailed list on what is tax deductible in the job search process. Some of those key items include resume costs (arguably your LinkedIn profile is an online resume!), traveling costs (flying and driving to interviews), babysitting fees, moving costs (relocation of more than 50 miles away), and costs for attending networking events. Many job seekers will overlook all of these deductions and have to back-track at the end of the fiscal year. Hindsight is always 20/20 which is why we are giving the 2016 job seekers a head start.  If you are beginning your job search in 2016, we recommend keeping a “job search” folder with parking receipts, mileage amounts, postage and mailings, networking event receipts, and of course the invoice for your resume services. Don’t forget the tax deduction for consulting with legal counsel should you need to hire one to review a non-compete or non-disclosure agreement before you accept a job offer.

For more detailed information on the tax savings, please refer to the IRS’ website or contact your accountant. To our 2015 clients, should you need an additional copy of your invoice, please do not hesitate to contact us!