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ASK KIM
Job Hunting Can Trim Your Taxes
by Kimberly Lankford

I was laid off a few months ago and have had to do a lot of traveling recently to interview for new jobs and spend money on resumes and other preparation. How much of this is tax deductible?

The answer depends on a few questions:

• Are you looking for a job in the same line of work?
  
  
• Will you itemize your deductions?
  
  
• Will your job-hunting expenses, together with other miscellaneous deductions (such as investment-related expenses, tax-preparation costs and eligible employee business expenses) exceed 2% of your adjusted gross income?

• The cost of travel, lodging and transportation for job interviews
• Bills for job-hunting phone calls and mailings
• Employment agency fees
• The cost of printing resumes

Check out IRS Publication 529, Miscellaneous Deductions, for more information. And if you're interested in more advice about organizing your finances after a lay off, see the Downsizing Survival Guide.