Tax deduction from Interview Expense

[goodluck888]

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I know it may be off the topic but may also be interested or important for many of us. I remember that I saw some posts before mentioned the expense of our interview of last year can be used for income tax deduction for 2007.

If so, does standard but not itemized deduction would also enjoy such benefit? Also, under which number of 1040 form can we put the interview expense for deduction? I did not find the place to appropriately put such expense on 1040 form. Any help is appreciated!

 

[radiaterMike]

I think you can deduct it even if you take standard deduction. I highly recommend TurboTax or equivalent, since it will walk you through this!

 

[Wm Tell]

You need to itemize your deductions to take advantage of this. List it under "Employment Expenses" (Job searching expenses are part of this deduction). I think you need a 1040A, not a 1040 to do this (?). You can also deduct the amount of tuition you paid last year.

In any case, I would also strongly recommend TurboTax. It's very easy, and you can get free Federal returns if you made below $30,000 (not counting dispersed loans), and free state returns if you live in:
AL, AR, AZ, GA, ID, IA, KY, MA, MI, MN, MO, MS, NY, ND, NC, OK, OR, RI, SC, VT, WV

go to statetaxfreedom.com

 

[xraydude]

Are you talking about residency or real job interviews?

For residency, I'd be surprised if you have have substantial enough income to qualify for deductions better than the personal deduction. But I'd talk with an accountant, because things like meals are only allowed at 50%.

For jobs....I hope your prospective employers are paying the expenses. And besides, most will also give generous moving expenses limiting your ability to deduct on taxes

 

[Ursus Martimus]

You need to itemize your deductions to take advantage of this. List it under "Employment Expenses" (Job searching expenses are part of this deduction). I think you need a 1040A, not a 1040 to do this (?). You can also deduct the amount of tuition you paid last year.

In any case, I would also strongly recommend TurboTax. It's very easy, and you can get free Federal returns if you made below $30,000 (not counting dispersed loans), and free state returns if you live in:
AL, AR, AZ, GA, ID, IA, KY, MA, MI, MN, MO, MS, NY, ND, NC, OK, OR, RI, SC, VT, WV

go to statetaxfreedom.com

Again I am not a tax pro but I would be careful. You cannot deduct these expenses if:

You are looking for a job in a new occupation
There was a substantial break between the ending of your last job and your looking for a new one
You are looking for a job for the first time

This is likely the case for most. A stretch may be for a student getting a stipend for which you might be able to make the argument for changing jobs in the same field. Too risky for me to have tried but good luck

 

[Wm Tell]

Points taken. So you know, I didn't actually deduct interview expenses (didn't need to), so I didn't have any first-hand knowledge when I posted originally. I just saw it listed as an option.

 

[Brim]

If you itemize, you can deduct interview expenses on Schedule A, Line 21 (unreimbursed employee expenses). The IRS allows for you to deduct "job search expenses in your present occupation". See IRS pub 529.

Strangely, the IRS specifically disallows deductions for professional accreditation fees, stating "You cannot deduct professional accreditation fees, such as the following . . . Medical and dental license fees paid to get initial licensing" (Pub 529).

I'm no accountant, but I'd interpret this as meaning you cannot deduct either: your USMLE fees or your Radiation Oncology board fees. Bummer.

 

[edmadison]

If you itemize, you can deduct interview expenses on Schedule A, Line 21 (unreimbursed employee expenses). The IRS allows for you to deduct "job search expenses in your present occupation". See IRS pub 529.

Strangely, the IRS specifically disallows deductions for professional accreditation fees, stating "You cannot deduct professional accreditation fees, such as the following . . . Medical and dental license fees paid to get initial licensing" (Pub 529).

I'm no accountant, but I'd interpret this as meaning you cannot deduct either: your USMLE fees or your Radiation Oncology board fees. Bummer.

There are several threads in the past that have discussed this issues. A few posters have noted important provisions.

1) Initial licensing fees and preparation expenses are not deductible. This would include the cost of the STEPS, license application, and board prep. The rationale is that cost to qualify you for a new profession are not deductible. However, once you meet this threshold, you should be able to deduct future license fees, dea fees and such. Regarding the specialty boards, since they are not legally required, they should be deductible as well.

2) Residency interviewing expenses, match fees, et al. are all fees paid to obtain your first job in a new field. Thus, these are not deductible. However, fees for fellowship match or interviewing as well as job seeking expenses for a job after residency should be deductible because they are not associated with initial employment.

Does that make sense?

Ed