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Can I deduct costs related to my job search?

Updated for tax year 2017.

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 two percent rule.

That means you can only deduct your total miscellaneous expenses – including job search expenses – to the extent they exceed two percent of your adjusted gross income.

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