Civilian interview expenses- tax write-off?

[j4pac]

Reading tax law makes my eye's bleed...so please someone help me.

I understand that medical students are not eligible for a tax-write off for travel/lodging for residency interview, but from what I read that is due to them starting their first job. I was wondering if those who have served as a FS/GMO/UMO can used travel as a tax deduction since it is a continuation of employment. Thanks.

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[colbgw02]

I would say that you are a physician now and that you will be a physician at your new job, so that qualifies as the same occupation. Also, remember that this deduction is subject to the 2% floor of your AGI.

 

[notdeadyet]

Ditto colbgw02's comments.

You can't write off residency interviews while in medical school with the logic that residency is a requirement to reach professional status in your field. Given that you finished internship and are licensed, you can make the case that you are a working professional and this is additional training. There's some irony to you writing off the same thing now you couldn't before, and a conservative accountant might push back, but if you explain the situation (that the military considers intern-level training sufficient to work full-time in your field whereas the civilian sector does not), s/he should be okay with it.

 

[edmadison]

You can deduct it and it makes complete sense if you look at the tax regulations. You may only deduct expenses seeking a position in an established profession, NOT a new one. You are a physician. Internship was your first job and that's why job hunting expenses for internship are not deductible. You are now looking for a different position in the same profession and thus expenses would be deductible. The only question would be whether residency is employment or education. This issue has been quite extensively litigated. SCOTUS ruled in favor of the IRS that residents were employees for Social Security tax purposes, so that issue is closed (at least for tax purposes).

Ed

 

[j4pac]

Thanks for all of the help guys. I'll probably run it by a TurboTax "specialist" (actually, they aren't that bad)...and anticipate making the deductions. I spent about $8k this year, so getting a portion of that back would be golden.