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Can I deduct costs related to my job search?

Q&A Series - TaxAct Blog

Should I itemize or take the standard deduction? - TaxAct Q&A Series

Job search expenses and the 2% rule

You can deduct any job hunting expenses you incur while looking for work in your current occupation. Any costs incurred while looking for a job in a new occupation are not tax deductible.

However, one thing to keep in mind is that, for many, deducting those costs will not result in a lower tax bill because those expenses are subject to the 2 percent rule.

That means you can only deduct your total miscellaneous expenses – including job search expenses – to the extent it exceeds 2 percent of your adjusted gross income.

About Jennifer S.

Jennifer is a tax analyst at TaxAct.