Five Summer Tax Tips For Job Seekers

The Internal Revenue Service issued a slew of summer tax tips in July, among them that job seekers "may be able to deduct some of the expenses" on their tax returns.

Below are five facts the IRS wants taxpayers to know about about deducting costs related to searching for a job:

Number one

To qualify for a deduction, expenses have to be for a job search in your current field or occupation. You cannot deduct expenses from looking to change occupations.

Number two

You can deduct employment or placement agency fees, but if your employer reimburses you in a later year, you have to include that amount in your gross income, up to the amount of your tax benefit in the earlier year.

Number three

You can deduct what you spend preparing and/or mailing copies of your resume to prospective employers as long as you are looking for a new job in your current job field or occupation.

Number four

If you travel to look for a job in your current job field, you may be able to deduct round-trip travel expenses, but you can only deduct those expenses if the trip is primarily to look for a new job.

"The amount of time you spend on personal activity compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job," according to the IRS.

Number five

You cannot deduct job search expenses if there was "a substantial break between the end of your last job and the time you begin looking for a new one," the IRS says.

You also can't deduct job search expenses if looking for a job for the first time.