Quick summary

Under the Tax Cuts and Jobs Act (TCJA) most miscellaneous itemized deductions — including employee job-search expenses — are suspended for tax years 2018 through 2025. Moving expense deductions are likewise suspended for most taxpayers, except for active-duty members of the U.S. Armed Forces who move due to a permanent change of station. (IRS Topic 511; IRS Publication 521.)

This article explains who still qualifies, how to document eligible costs, reporting and employer-reimbursement considerations, common pitfalls, and practical steps you can take now.

Why the rules changed and what that means now

Before the TCJA (effective 2018), taxpayers could deduct unreimbursed job-search expenses and, in many cases, moving costs as miscellaneous itemized deductions on Schedule A (subject to a 2% of adjusted gross income floor). The TCJA suspended those miscellaneous itemized deductions and suspended the moving expense deduction for employees through 2025. The military exception remains in place.

That means:

  • Employees generally cannot claim job-search or moving expense deductions on federal income tax returns for tax years 2018–2025. (See IRS Topic 511 and Publication 521.)
  • Active-duty service members who move because of a permanent change of station can still claim moving expense deductions and use Form 3903. (IRS Pub. 521 and Topic 451.)
  • Self-employed taxpayers may deduct ordinary and necessary business expenses related to finding clients or running their trade on Schedule C, but a job search to enter a new trade or business typically creates start-up costs that must be capitalized.

Authoritative sources: IRS Topic 511 (Job Search Expenses), IRS Publication 521 (Moving Expenses). See also IRS Topic 451 for military moving rules. (https://www.irs.gov/taxtopics/tc511, https://www.irs.gov/pub/irs-pdf/p521.pdf)

Who can still deduct these costs?

  1. Active-duty military members: If you move because of a permanent change of station, you may be able to deduct unreimbursed moving expenses. Use Form 3903 to report this deduction; review Publication 521 for details. (Internal Revenue Service.)

  2. Self-employed people and business owners: Expenses that are ordinary and necessary to run your business — for example, advertising to find customers or travel to meet clients — are generally deductible on Schedule C. However, expenses for searching for work in a different trade typically aren’t deductible and may be classified as start-up costs.

  3. State returns: Some states did not conform fully to the TCJA suspension. That means a moving or job-search deduction may still be available on your state return. Check your state tax agency or your state-specific tax guidance.

Interlink: For a deeper look at the military moving deduction and how to claim it, see our glossary entry: “Moving Expenses Deduction (for military)” (https://finhelp.io/glossary/moving-expenses-deduction-for-military/). For rules and records around job-search deductions historically and what to keep even now, see “Deducting Job-Search Expenses: Rules and Records” (https://finhelp.io/glossary/deducting-job-search-expenses-rules-and-records/).

Types of expenses that were commonly deducted (and how to treat them now)

Even though most of these aren’t deductible for employees on federal returns right now, they’re useful to track and some are deductible in other contexts (business, military, employer reimbursement):

  • Resume, headshot, and portfolio fees. Track receipts; if you’re self-employed and the expense is directly tied to generating business, it may be deductible on Schedule C.
  • Job-search travel and interview costs. Generally nondeductible for employees under current law; if you travel for business as a contractor or business owner, those costs may be ordinary business expenses.
  • Placement agency or recruiter fees. Typically nondeductible for employees; for a self-employed person, a fee to find clients may be deductible.
  • Moving truck rental, packing, storage, and travel to a new residence. Deductible only for active-duty military under current federal rules.

If your employer reimburses moving expenses, those reimbursements are generally taxable to the employee for tax years 2018–2025 (unless excluded by military rules) and should be included in wages. Talk to payroll about whether a reimbursement is taxable or if the company will treat it as grossed-up compensation.

Practical documentation and recordkeeping (what I recommend in practice)

Even when a federal deduction isn’t available for employees, good records matter for employer reimbursement, state returns, or if the law changes:

  • Keep a running spreadsheet with dates, purpose, payee, and amount for each job-search or moving expense.
  • Save original receipts and PDFs for services (resume writing, placement fees, travel invoices, moving company contracts, storage invoices).
  • For travel, log miles with purpose (interview location or business meeting). If you use the standard mileage rate for business, retain calendar entries and boarding passes.
  • For employer reimbursements, keep copies of the company’s relocation policy and any written agreement, and note how the reimbursement was reported on Form W-2.

In my practice, clients who log expenses the day they occur avoid disputes with employers and save time if they later qualify for a state deduction or if federal law changes.

Reporting: where and how (current federal rules)

  • Employees: There is no federal line to claim these job-search or moving expense deductions for tax years 2018–2025. If your only nonzero items would have been these expenses, they are not deductible on Schedule A.

  • Active-duty military: Report moving expenses on Form 3903 and follow the instructions in Publication 521. If your military relocation reimbursement is not excluded, follow the rules in Pub. 521.

  • Self-employed: Claim ordinary and necessary business-related search or travel costs on Schedule C. Start-up and organizational costs for a new trade or business generally must be capitalized and amortized.

Negotiation and planning tips

  • Negotiate a relocation allowance with your employer rather than uncertain reimbursement language. Ask whether the company will gross-up the payment for taxes.
  • If your employer offers a third-party relocation firm, get the firm’s written estimate and record what they paid directly — that makes the tax treatment clearer.
  • If you’re a contractor or starting your own business, track search-related expenses as business expenses from day one. That documentation supports Schedule C deductions.

Common mistakes and misconceptions

  • Assuming a deduction exists because it did before 2018. The federal deduction for most employees is suspended through 2025.
  • Failing to track expenses because you think they aren’t deductible. Good records help for employer reimbursement, state filings, and potential future law changes.
  • Misclassifying start-up expenses as deductible business costs. Costs to investigate or create a new business are often capitalized.

Example scenarios

1) Employee, non-military: You pay $1,200 for interview flights and $300 for a resume service. For tax year 2024 you cannot deduct these on your federal return. Keep receipts: they may matter for state taxes or employer discussions.

2) Active-duty military: You incur $5,000 in moving expenses because of a PCS. You may deduct unreimbursed expenses on Form 3903 (subject to rules in Publication 521).

3) Self-employed consultant: You pay $800 to advertise services and $400 in travel to meet prospective clients. These are ordinary business expenses you generally deduct on Schedule C.

Where to read the official rules

Internal resources: “When Moving Expenses Are Tax-Deductible: Current Rules” (https://finhelp.io/glossary/when-moving-expenses-are-tax-deductible-current-rules/) and “Deducting Job-Search Expenses: Rules and Records” (https://finhelp.io/glossary/deducting-job-search-expenses-rules-and-records/).

Bottom line

For most employees, federal deductions for job-search and moving expenses are not available through 2025; the primary federal exception is active-duty military moving for a permanent change of station. If you’re self-employed, ordinary business expenses remain deductible. Always keep complete records, check your state rules, and ask a CPA or tax professional about your particular situation.

Professional disclaimer: This content is educational and reflects federal rules current as of 2025. It does not replace personalized tax advice. Consult a qualified tax advisor or CPA for guidance tailored to your circumstances.