Can a Dentist Deduct Job Hunting Expenses? And the IRS Says…

Income Tax—Recent Graduates’ Job Search Expenses: 

Expenses incurred by taxpayers when searching
for new employment in the same trade or business are deductible as a
miscellaneous itemized deduction [IRC Sec. 67(b) ]. Therefore, they are
deductible only for regular tax purposes and only to the extent they and other
miscellaneous itemized deductions exceed 2% of AGI. While the costs of finding
first-time employment are not deductible, since first time employment by
definition cannot be in the taxpayer’s same trade or business (Rev. Rul.
75-120, 1975-1 CB 55 ), moving expenses associated with first-time employment
are deductible if the time and distance tests in IRC Sec. 217(c)(1) are met.
According to IRS Pub. 521 , Moving Expenses (For Use in Preparing 2011
: “If you go to work full time for the first time, your
place of work must be at least 50 miles from your former home to meet the
distance test.”
Thanks for posting!  Do I just need to
save receipts for U-Hauls/gas?
Yes, save all
receipts and record ALL moving expenses. When you have your return prepared, let the CPA know. They’ll let you know what’s deductible and what may not
be. It’s always better to give us too much info than not enough information….in
my opinion.
For more information, please contact