Pub 529

You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a
new job. You cannot deduct these expenses if:

1. You are looking for a job in a new occupation, or
2. You had a substantial break between the time of your last job and your looking for a new one.

Caution. You cannot deduct your expenses if you are seeking employment for the first time.

You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation.

Employer pays you back. If, in a later year, your employer pays you back for employment agency fees, you must
include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year.

Employer pays back the employment agency. If your employer pays the fees directly to the employment agency and
you were not responsible for them, you do not include them in your gross income.

Resumé. You can deduct amounts you spend for typing, printing, and mailing copies of a resumé to prospective
employers if you spent the amounts in looking for a new job in your present occupation.

Travel and transportation expenses. If you travel to an area and, while there, you look for a new job in your present
occupation, you may be able to deduct travel expenses to and from the area. You can deduct the travel 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 in looking for work is important in determining whether the trip is primarily personal or to look for a
new job.

Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job
in your present occupation, while in the area.

If you use the standard mileage rate to figure your car expenses, use 31.5 cents per mile.

Licenses and regulatory fees for your trade, business, or profession paid each year to state or local governments are
deductible.