Combine miscellaneous itemized deductions in the same year. Only miscellaneous itemized deductions that exceed 2% of your adjusted gross income (AGI) are deductible. Consequently, most people find that their miscellaneous itemized deductions are not deductible. Loophole: By paying two years of expenses in the same year, you can often get over this 2% of AGI limit.
Under certain circumstances, you can deduct the cost of looking for a job as a miscellaneous itemized deduction up to the amount your total combined miscellaneous deductions exceed 2% of your Adjusted Gross Income. To deduct job-hunting costs, you must be looking for employment in the same or a related field of work. If you satisfy the requirements, here are some of the costs you can deduct.
- The cost of transportation to and from job interviews.
- 50% of the cost of meals and entertainment which you incur because of your job search.
- The cost of out of town travel to seek new employment, including transportation, lodging, and 50% of meals and entertainment.
- Fees that you pay to job counselors, recruiters, and employment agencies.
- The cost of newspapers and other publications that you buy because of their employment advertisements.
- The cost of preparing and mailing resumes, including printing, envelopes and postage.
Even if you don’t find a new job, you can still claim these deductions.
Miscellaneous deductions are those deductible items which are not medical expenses, taxes, interest, charitable contributions, or casualty losses. Continue reading “Miscellaneous Deductions: Fully Deductible Or Not?”