Job seekers may be able to get a break on their returns

Hundreds showed up for the South Florida Diversity Job Expo Thursday. Many job hunters can qualify for tax deductions. (Joe Raedle/Getty Images)

Looking for work? Don't neglect tax deductions for job hunting.

But it's not a slam dunk. "There are a lot of thresholds to cross," warns tax lawyer Barbara Weltman, an editor at the J.K. Lasser annual tax guide.

Many of the rules, for example, are subjective, so how deductions might fare in an Internal Revenue Service audit can vary with the specifics of a situation.

The basic rule - whether you're laid off or simply want a change - is that job hunting expenses are deductible on your federal return if you itemize deductions. People who take the standard deduction can't claim these expenses.

Among deductible items:

Resumes, phone calls, local transportation to an interview, legal advice, and fees at an employment agency or counselor.

Unreimbursed out-of-town travel, including meals and lodging, is allowable if the trip is primarily to line up a job.

Unsuccessful in the hunt? Qualifying expenses in a job search are deductible even if no position is found.

There are a few snags for those looking to take deductions for job-hunting expenses. Job hunting isn't deductible when looking for your first job, returning to work after a long absence, or for work in a new field. The more similar an old and new job are, the safer the deductions. A teacher seeking to become a principal is on firmer ground than a teacher who becomes a car salesman.

Also, if you're looking to dress up for a job interview, don't expect to deduct the expense. A new suit, no matter how much you need one before an interview, isn't deductible.

Additionally, a drawback is that job hunting falls into the catchall "miscellaneous" category of deductions. Under the tax code, only the portion of combined miscellaneous expenses that exceeds 2 percent of your adjusted gross income is generally deductible. So someone with income of $50,000 can only typically deduct the portion of overall miscellaneous items in excess of $1,000.

"That can be a killer," Weltman says.