Overview
This guide explains which job-search expenses, if any, you can deduct for federal income tax purposes, how the rules changed after the Tax Cuts and Jobs Act (TCJA), and practical record-keeping steps to protect your claim. I’ve advised clients on job-search tax questions for more than 15 years; the biggest practical issue I see is good documentation—receipts, dates, and a clear link to your occupation.
IRS rules changed materially with the TCJA. For tax years 2018 through 2025, miscellaneous itemized deductions subject to the 2% of adjusted gross income (AGI) floor—including unreimbursed employee business expenses and most job-search costs—are suspended. That means most employees cannot claim job-search expenses on Schedule A during this suspension period (IRS Publication 529). See the IRS guidance here: https://www.irs.gov/publications/p529
However, there are important exceptions and alternative paths to deducting job-search costs. The most common exceptions are:
- Self-employed taxpayers: If you are running a business, job-search or client-development expenses that qualify as ordinary and necessary business expenses are deductible on Schedule C. These are not treated as the suspended miscellaneous itemized deductions because they relate to an active trade or business.
- Business startup vs. personal job hunting: Costs you incur to start a business are generally capitalized as startup costs (Section 195) and may be amortized or partially deducted once the business begins. Purely personal job searches to become an employee are not business startup deductions.
- State tax differences: Some states do not conform to the TCJA suspension and may still allow job-search expense deductions at the state level. Check your state department of revenue or consult a tax professional.
Who could previously deduct job-search expenses — and who can now
Prior rules (pre-2018): Employees who were seeking work in their current occupation could deduct unreimbursed job-search costs as miscellaneous itemized deductions on Schedule A, subject to the 2% AGI floor. Typical deductible items included resume costs, employment agency fees, job-fair fees, and travel to interviews.
Current situation (2018–2025): Those miscellaneous itemized deductions are suspended. That means most employees cannot deduct job-search costs on their federal return. The most relevant alternatives are:
- Self-employed or independent contractors: Deduct ordinary and necessary job-related expenses on Schedule C.
- Starting a business: Consider the startup costs rules and consult a tax professional about capitalization vs. current deductions.
In my practice, I often see clients who assume they can still deduct job-search costs because they paid for resumes or traveled to interviews. For federal purposes, most of those clients are no longer eligible unless they can reclassify costs under business expense rules.
Typical job-search expenses and how to treat them
| Expense type | Typical examples | Federal tax treatment (2018–2025) |
|---|---|---|
| Resume and application fees | Professional resume writing, editing, printing | Generally not deductible for employees; may be deductible as Schedule C expense if self-employed and costs are ordinary and necessary to find customers or contracts |
| Travel for interviews | Mileage, parking, lodging for job interviews | Not deductible for employees; mileage for a self-employed job-related trip may be deductible on Schedule C |
| Employment agency fees | Fees charged by headhunters or placement firms | Not deductible for employees under current federal rules; potentially deductible for someone paying to place themselves in a business activity |
| Job fairs and memberships | Registration fees, professional association dues | Not deductible for employees federally; membership dues may be deductible for self-employed when directly related to business |
Examples to clarify
Example 1 — Former employee searching for same occupation (employee):
A designer who was laid off searches for another design position and pays for resume services and travel to interviews. Under federal law for tax years 2018–2025, those expenses are not deductible on Schedule A. If she later starts a freelance design business and the same costs relate to obtaining clients, similar expenses could be reclassified as Schedule C business expenses.
Example 2 — Self-employed professional:
A consultant who is self-employed attends trade shows and pays to prepare marketing materials and travel to meet potential clients. Those are ordinary and necessary business expenses and are deductible on Schedule C.
Example 3 — Starting a new business vs. job hunting:
A software engineer leaves employment to start a product-based business. Costs to look for investor meetings or to test a market may be startup costs and should be evaluated under startup-cost rules. They are not treated the same as employee job-search expenses.
Required records and how long to keep them
Good documentation is the single most important thing you can do, whether a deduction is currently allowed or if you later need to substantiate business expenses. Keep the following records for any job-search–related costs you might claim on a business return or that could be relevant to a future return:
- Receipts, invoices, and canceled checks for all job-search or business-related expenses.
- A dated job-search log or calendar showing activity: dates of interviews, employers contacted, job titles searched for, and outcomes.
- Mileage log for travel (odometer readings, date, purpose, and miles driven). If you use the standard mileage rate, keep contemporaneous mileage records.
- Copies of resumes, cover letters, invoices from resume writers, and communications with employment agencies.
IRS guidance on recordkeeping for tax purposes is available here: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping. As a general rule, keep records at least three years from the date you file the return claiming the deduction. If you underreport income substantially (more than 25%), the IRS can go back six years. If you file a claim for refund, other retention rules up to seven years may apply. When in doubt, keep supporting documents until the statute of limitations for that tax year has expired.
Practical steps before you claim anything
- Reclassify when possible: If your job-hunting activity is actually part of a business (freelancing, consulting, gig work), document how the expenses relate directly to generating business income and report them on Schedule C.
- Track mileage and travel properly: Use a simple mileage log app or spreadsheet. Note date, purpose, start/end odometer, and total miles for each trip.
- Separate personal and business costs: If travel or events are mixed (vacation + interviews), prorate expenses and keep clear evidence of the business portion.
- Look for state deductions: Some states do not follow federal changes; consult your state tax agency’s guidance.
- Consult a tax professional: If your situation is complicated (career change, starting a business, or large pre-tax costs), get written advice from a CPA or enrolled agent.
Common mistakes and audit triggers
- Claiming employee job-search costs on Schedule A during the TCJA suspension — this is incorrect for most taxpayers at the federal level.
- Lacking contemporaneous records — a folder of receipts without dates or purpose is weaker than a dated job-search log plus receipts.
- Mixing business and personal travel without a clear allocation method.
State tax differences
State conformity to federal tax law varies. Some states decoupled from the TCJA and still allow miscellaneous deductions or have their own rules for job-search costs. Always check your state Department of Revenue site or ask your preparer whether your state return allows deductions that the federal return does not.
When to consider professional help
Consider hiring a tax professional if you:
- Are attempting to deduct large job-search costs and you are not sure whether they qualify as business expenses.
- Are starting a business and need help with capitalization vs. current deductions for startup costs.
- Face a tax notice or audit related to employment or business expenses.
In my practice, properly documenting how a job-search expense relates to a trade or business is the most frequent way clients move a cost from an unsupported personal deduction into an allowable business expense.
Quick checklist for job-search record keeping
- Keep receipts and invoices for all services and purchases.
- Maintain a dated job-search log (contacts, dates, outcomes).
- Keep a mileage log if you travel for interviews or business.
- Save bank/credit card statements that corroborate payments.
- Keep copies of resumes and related correspondence.
Resources and further reading
- IRS Publication 529, Miscellaneous Deductions: https://www.irs.gov/publications/p529
- IRS recordkeeping guidance: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping
Internal resources on related topics:
- When Moving Expenses Are Tax-Deductible: Current Rules — good to read if your job search triggers a move: https://finhelp.io/glossary/when-moving-expenses-are-tax-deductible-current-rules/
- Form 3903 – Moving Expenses — if moving expenses apply to military or special cases: https://finhelp.io/glossary/form-3903-moving-expenses/
Professional disclaimer
This article is educational only and does not substitute for personalized tax advice. Tax laws and their application can vary by individual facts and by state. Consult a qualified tax professional (CPA or enrolled agent) for advice about your specific situation.
