You may be able to claim all of your job-search expenses, including costs related to the preparation of resumes and cover letters, as itemized deductions.
According to the Internal Revenue Service, job-search expenses are deductible up to a limit which equals 2% of your adjusted gross income. 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:
- You are looking for a job in a new occupation,
- There was a substantial break between the ending of your last job and when you began looking for a new one, or
- You are looking for a job for the first time.
Employment and Outplacement Agency Fees
You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation.
Resume
You can deduct amounts you spend for typing, printing, and mailing copies of a resume to prospective employers if you are looking for a new job in your present occupation.