Question:   My husband lost his job due to budget cutbacks.  We have decided to relocate and we have been busy travelling to different locations looking for the right situation for a new job.  Are our job-hunting expenses deductible?

Answer:                

Yes, but the total of your job hunting expenses must exceed 2% of your “adjusted gross” income.  They are deductible as miscellaneous itemized deductions.  So, make sure you keep track of all of your job-hunting costs. As long as you’re looking for a new position in the same line of work (your first job doesn’t qualify), you can deduct job-hunting costs including travel expenses such as the cost of food, lodging and transportation, if your search takes you away from home overnight.

Feel free to contact me if you or someone you know has this type of situation.  Tax laws can be tricky; thus, the above answer cannot be applied to all circumstances because the slightest variation could cause a different outcome.