Sometimes when looking for work, people have to buy things. Sometimes a person needs nice clothes for the interview and business attire, or sometimes people are required to buy a uniform for the job. Some will do payday loans for this but guess who gets to claim the cost on their federal taxes?
If the answer was the uniform, it’s correct. Clothing can be deducted if the person can prove it wasn’t possible to use the clothing for anything other than work. Then, once the job has been landed, purchases like waterproof rain gear, steel-toed work boots, coveralls, tools, etc. Remember, IF the person never wears them except for work they can be deducted.
Travel, hotel and meals can be taken off if looking for work out of town is required. However, do NOT bring the spouse, kids or even the dog, or the expense can’t be used. For instance, if flying to Phoenix for a job interview, don’t bring the family and turn it into a weekend vacation. None of the expenses can be used if anything personal happens. Try not to mix business and pleasure and be sure to keep all the receipts.
Some Costs are Tax Deductible, but Not All
Costs like printing and mailing resumes can be tax deductible and so can fees from head-hunting and temp agencies that help find people a job. Tuition and fees for employment-related classes can also be deducted.
Health insurance premiums are tax deductible if they haven’t been paid with pretax moneys – employer paid insurances are usually paid with pretax money. However, they must amount to 7.5% of total adjusted gross income in order to be deducted.
If job interviews are reached via public transportation, that can be deducted from taxes, too. If one must take a cab, get a receipt. Only use a car if the car isn’t used for anything except the job – not looking for work, but after the job has been gotten and worked, then someone can use a car.
Make sure to get informed on tax law changes so the most money as possible can be returned to the filer.
