IRS rules are very specific about job search expenses. For example, you can only deduct certain expenses that you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct any expenses if you are looking for a job in a new occupation.
New computers are not listed by the IRS as a deductible job search expense in IRS Publication 17 and Publication 529, which explain all about job search expenses. Job search expenses that are listed as deductible include employment agency fees, resume preparation and mailing, travel expenses for trips that are primarily to look for a job, and local and long-distance phone calls to prospective employers.
In addition, job seekers just can't automatically subtract job-hunting expenses from their income. These expenses are deductible only if you can itemize deductions on Schedule A and only if the total of your miscellaneous itemized deductions, including job-hunting expenses, exceeds 2% of your adjusted gross income.
There is, however, one possible strategy that might work. If you are able to generate freelance self-employment income during the time period in between full-time jobs, the proportion of your computer purchase that is attributable to self-employment work could possibly be written off as a business expense using Schedule C or Schedule C-EZ, the tax forms used by those with self-employment income. Consult a tax adviser for more details as they apply to your personal situation.
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