Your job-hunting expenses could be tax-deductible

Did you know that you might be able to deduct certain costs of looking for a new job, even if you don't find one?

To qualify for the deduction, you must be looking for a job in your current occupation, not in a new field.  And there can't have been a long break between your previous job and your current search.  Deductible expenses include:

• The fees you pay to an employment or outplacement agency.

• The travel and transportation expenses you incur while looking for work, including 36.5 cents per mile for your car mileage.

• The costs of preparing and mailing your resume.

• Long distance phone calls to a potential employer.

In order to deduct job-hunting expenses you must itemize your deductions on your tax return.  Job-hunting costs are considered miscellaneous deductions, which are generally deductible only to the extent they exceed 2% of your adjusted gross income.

If you're changing jobs, it's worth keeping track of your expenses just in case you qualify for the deduction.