No job-hunting deductions for new grad

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in Small Business Tax

Q. My son graduated from college in May. Can he deduct travel expenses to job interviews? N.W., Syracuse, N.Y.

A. Generally, no. The tax law allows you to write off job-hunting expenses—including travel costs associated with going on interviews—only if you’re seeking a job in the same profession. However, as unfair as it seems, you can’t deduct the cost of a job search if you’re switching your industry or profession or you are applying for your first job out of school without having established a profession. In these situations, job-hunting expenses are deemed to be personal nondeductible expenses.

Tip: When job-hunting expenses are deductible, they must be claimed as miscellaneous expenses subject to the 2%-of-AGI deduction threshold for miscellaneous itemized deduction items.

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