Tax Question

[JenniferJJ]

Okay, I can't be the only one.

I really thought you could deduct expenses relative to searching for a job. But I don't see it under Turbo Tax. Am I wrong? If not, what topic would it be under?
TIA

[Laura]

I think it is under miscellaneous itemized deductions. So you have to itemize your deductions and you don't get it if you use the standard deduction. I also think they (miscellaneous deductions) need to exceed 2% of your AGI. I am not accountant though so maybe someone more knowlegeable will answer.

[jules1993]

Hi,
Yes, you can deduct job search expenses. I am not sure where in Turbo Tax that it is located but I know you can do it. Sorry I can't be more helpful.

Julie

[JenniferJJ]

Thanks. I found it. Unfortunately, I fear an audit. My deductions equal 85% of my income: I was unemployed for 7 months, but still have a mortgage intrerest deduction, property tax and then add the job-search deduction. Am I correct to think my deductions equaling such a high percentage of my income could be a red flag?

[Laura]

turbo tax used to have audit flags; but if your deductions are documented, then I would go for it. The bigger problem is when you know you spent something but don't have the receipts or documents available. of course i have never been audited, so I guess I can't speak from experience.

[JenniferJJ]

Hmmmm...I wonder if the audit flags in Turbo don't go off if it makes sense - or I wonder if the program is sophisticated to figure that out. Hopefully, whoever might be looking at this would figure that it makes sense - the majority of the deductions are documented without recipeipts - ex. mortgage interest. Oh well.

Hopefully, next year the income will be much higher than my deductions.