If you found yourself looking for a new job in 2008, you have an opportunity to take some major tax deductions before April 15. There are a few conditions, of course. You can’t be currently employed and looking for work — and you can’t have taken a long chunk of time off between your last job and your new one. If, for instance, you’re a parent returning to the work force after staying at home with the kids for a couple of years, you can’t take advantage of these tax breaks. You also must itemize your job hunting expenses in order to claim them, and complete a Schedule A.

What Job Hunt Expenses Can You Deduct?

1. Resume preparation: If you hire a resume writer, the expense is deductible. That includes everything from revising your resume to tweaking it for specific employers. You can even write off the expense of having someone set you up on LinkedIn to help snag a job.
2. Newspapers and job listings: If you read the want ads, you can deduct the price of your morning paper. You can also write off any expense associated with visiting online job boards, although your actual internet access may not be deductible as long as you use it for anything besides a job hunt.
3. Traveling: If you travel in order to interview or look for a new job, you can deduct everything from plane tickets to food expenses. Even if you’re only traveling within your home town, you can write off the mileage between your house and your interview. You will need to keep a mileage log to claim that particular deduction.
4. Career coaching: You can get assessments of your current skills, help planning your goals in your current career or coaching to improve your interview skills. All of the above do more than help you land a job — they all can be written off on your taxes.
5. Entrepreneurial efforts: As long as you’re staying in your previous profession, the expenses of becoming self-employed are deductible as part of your job search. If you’re setting up your own business, though, some of those expenses also are deductible as business expenses. Be careful not to deduct them twice — the IRS doesn’t look kindly on such an approach.

Getting Your Deductions

You’ll need to keep records and receipts for any job search expenses you plan to claim on your taxes. A copy of your credit card statement isn’t enough to convince the IRS to let you make deductions. It’s worth noting that everyone’s tax situation is different and that it is impossible to offer comprehensive tax advice over the internet. It’s definitely worthwhile to consult your own tax preparer before taking these deductions.

You may be wondering why the IRS is willing to offer you so much help in finding a new job. After all, you’d think that particular government agency wouldn’t care either way. The fact of the matter, though, is that it’s good business for the IRS to help you in your job hunt. The faster you get a new job, the faster you’re back at work, earning money. The IRS can’t take a chunk of your paycheck if you’re unemployed.

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