Job hunting? Expenses may be deductible

If you've been job-hunting, some of your expenses may lead to tax deductions, the IRS said.

The Internal Revenue Service passes along these tips:

1. The expenses must be spent on a job search in your current occupation. Searches involving a career change don't qualify for a deduction.

2. Fees paid to employment and outplacement agencies can be deducted, but they, too, must involve searches in your present occupation. If your employer pays you back in a later year for employment agency fees, include that amount in your gross income up to the amount of your earlier tax benefit.

3. You can deduct what you spend for preparing and mailing your résumé to prospective employers as long as your search is, again, in your current occupation.

4. If you travel during your job search, you may be able to deduct travel expenses if the trip is primarily to look for a new job. But the amount of time you spend on work versus pleasure will determine whether the trip qualifies. Again, only your current occupation applies.

5. You can't 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.

6. Searching for your first job? Sorry, your searches don't qualify for a deduction.

For more information about job search expenses, see IRS Publication 529, Miscellaneous Deductions. This publication is available on the IRS Web site, www.IRS.gov or by calling 800-829-3676.

Also, check out the IRS site's entry on business travel expenses.