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Friday, May 07, 2010

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» Been job hunting? from Roth & Company, P.C.
You might have some deductions for your job search, if you itemize and you are looking in the same field... [Read More]

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Michelle Wiecek

Hi, great read! I have two questions that i hope you can answer:

#1 - Why are job searches, not in your field, not deductible? Why does the allowable deduction only apply to people within their own field or expertise? (i am just wondering why.. and have not been able to find any reasoning, was hoping you can offer some insight)

#2 - If you start your job search in your same field; however, you end up with a job that is not in your same field.... can you still deduct the job search expenses?

Thank you, in advance, for your response.

jobguide

"The tax agency specifically warns that you cannot deduct job search expenses if there was a "substantial break" between the end of your last job and the time you begin looking for a new one."

What constitutes substantial? One month? Two months? Three?
Internal Revenue Service's Publication 529 (Miscellaneous Deductions)doesn't offer any clues. If you used your severance pay to take a six-month trip to Brazil, can you deduct these job-hunting expenses after you're tanned, rested and ready?

I recommend to call you tax advisor as these cases are taken individually. If you were called in for an audit on an expense you incurred and you had not been working for a substantial amount of time, it depends on the area of work, area of expertise, and things like that.


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