{"id":15098,"date":"2018-03-16T07:00:36","date_gmt":"2018-03-16T12:00:36","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=15098"},"modified":"2019-03-29T13:08:54","modified_gmt":"2019-03-29T18:08:54","slug":"tax-implications-of-changing-jobs","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/personal-tax-planning\/tax-implications-of-changing-jobs\/","title":{"rendered":"How Does Changing Jobs Affect Your Tax Return?"},"content":{"rendered":"

A new near usually comes with resolutions. This year, they may include changing jobs. Like so many aspects of our lives, changing jobs comes with tax benefits and consequences.<\/p>\n

The most obvious implication will be a possible change in your tax rate if your job change is advantageous enough to shoot you into a higher bracket. However, there are plenty of other tax effects that may be less obvious.<\/p>\n

Deduct Job Search Expenses<\/h2>\n

If you spend a long time looking for a new job you likely racked up some expenses in the process. These costs may include using a recruiter or outplacement agency, traveling for interviews, or even preparing and mailing your resumes. Fortunately, if you are searching for a job in your current trade or business, you can take a deduction for these job search expenses.<\/p>\n

The following are examples of allowable job search expenses you may deduct on your Schedule A<\/a>:<\/p>\n

    \n
  1. Employment, career development,\u00a0and outplacement agency fees<\/li>\n
  2. Cost of resum\u00e9 preparation, including development (such as fees charged by professional\u00a0resum\u00e9 specialists), printing, and mailing<\/li>\n
  3. Travel and transportation expenses where the job search is the primary purpose of the travel<\/li>\n<\/ol>\n

    There is no deduction allowed for job search expenses if:<\/p>\n

      \n
    1. You are looking for a job in a new occupation, even if you get the job.<\/li>\n
    2. A substantial break exists after the ending of your previous job.<\/li>\n
    3. You are looking for a job for the first time \u2013 no deduction for college graduates looking for their first job.<\/li>\n<\/ol>\n

      Moving Expenses Deduction<\/h2>\n

      If you are fortunate enough to a find a job and that job requires you to move, you may be able to deduct the moving expenses from your taxes. The move must meet certain distance and time requirements to be deductible.<\/p>\n

      There are three requirements you must meet to qualify for the moving expenses tax deduction.<\/p>\n