Tax Deductions and Your First Job
If you meet the qualifications, you can deduct much of the cost of finding – and moving for – a new job. But what about your first job after graduating from college?
Finding Your First Job
College students unfortunately can’t deduct the costs of searching for that new job after graduation. You have to already be employed to qualify for this deduction. And even if you are employed full-time, job search expenses, combined with various other expenses, have to exceed 2 percent of your adjusted gross income before they can can start to produce any tax savings.
Moving to Your New Job
The IRS lets you deduct much of the expense of moving for a new job. And that applies to moving to that first job after college, as long as the new position requires you to live at least 50 miles away from your old address, and your move is made within a year of starting employment. You’ll need to keep all receipts and bills related to your move, for documentation.
Report your moving expenses on our Form 3903 – Moving Expenses screen. Our tax return interview will help you fill out the right screens.