Job-hunting expenses are deductible. If you re out of work, or even if you re still employed but looking for a new job, all of your job hunting expenses are deductible as miscellaneous itemized deductions. Such expenses would include resumes, phone calls, postage, travel costs and any other expenses related to your attempt to get a new job. If you did a lot of driving in your job search last year, you can deduct mileage for your 2000 return at a rate of 32.5 cents a mile. For 2001, the mileage rate rises to 34.5 cents a mile.
Creativity here can be rewarding.
For example, if you take a friend to lunch in an attempt to use him as a reference or referral, you can use the cost of the lunch as a job-hunting expense. Keep up with your investment expenses. Investment expenses also are allowed as miscellaneous deductions. Such expenses would include investment publications, payment for investment advice, calls to your broker and any other expenses related to the production of investment income. Rather than buy your investment newspapers and magazines at the newsstand, subscribe to them and use your check as the receipt.