How to Track and Claim Job Search Expenses

Quick legal summary

As of 2025, most employee job search expenses are not deductible because miscellaneous itemized deductions (including unreimbursed employee expenses) were suspended by the Tax Cuts and Jobs Act through tax year 2025. See IRS Topic No. 511 for an official overview. Self-employed people, independent contractors, and small-business owners can generally deduct ordinary and necessary business expenses related to finding clients or work on Schedule C (Form 1040). Always confirm current rules with the IRS and your tax professional before claiming any deduction.

Authoritative sources: IRS Topic No. 511 (Job Search Expenses) and IRS guidance on business expenses (Schedule C). See also the IRS page for standard mileage rates if you track vehicle use.

Who can still deduct job search costs?

• Self-employed workers and sole proprietors: Costs that are ordinary and necessary for your business (for example, advertising, résumé or portfolio creation aimed at finding freelance clients) are deductible on Schedule C. Refer to IRS Publication 535 and Schedule C instructions for specifics.
• Employees and job seekers: For tax years 2018–2025, most unreimbursed job-search expenses are not deductible because miscellaneous itemized deductions subject to the 2% floor are suspended. There are limited exceptions (for example, certain members of the Armed Forces who move under orders).
• Students or recent graduates: Costs to gain new qualifications for a new occupation are generally not deductible as job search expenses; they may qualify for education tax credits or other education-related deductions in specific circumstances.

In my practice, many clients assume a job-hunting deduction is automatic. The first step I take with them is to establish whether they’re reporting the costs as business expenses (Schedule C) or looking to itemize—most find Schedule C is the correct path only when they have self-employment income or an independent contractor relationship.

What kinds of expenses used to be eligible (and when they may still apply)

The categories below reflect the traditional list of job search costs and where they may still be relevant today:

• Transportation and travel for interviews: airfare, trains, taxis, rideshare, parking, tolls, lodging, and meals (meals are often limited). If you are self-employed and the travel is for business development, deduct on Schedule C. See IRS standard mileage guidance for vehicle-related claims.
• Résumé and portfolio costs: fees for professional résumé writers, printing, portfolio production, and mailing.
• Employment agency or recruiter fees: costs paid to agencies to find work. If you’re self-employed and the fees are for finding clients, these can be business expenses.
• Education and training: Costs to maintain or improve skills required by your current job may be deductible for a business or possibly qualify for other credits; costs to train for a new occupation typically are not deductible as job-hunting expenses.
• Internet, phone, and supplies: Pro-rate home-office internet and phone bills if legitimately used to find clients; supplies like stationery and postage for applications.

Remember: whether an item is deductible depends on purpose (maintain/retain current job vs. qualify for a new trade) and the taxpayer’s status (employee vs. self-employed).

How to track job search expenses (step-by-step)

1. Create a dedicated job-search folder (digital and physical). Immediately file receipts, invoices, confirmation emails, and boarding passes.

2. Keep a daily or per-activity log. For travel or interviews, record date, purpose (company name or contact), location, and business purpose. For mileage, note odometer readings or use an app that records trips with purpose tags.

3. Use a category spreadsheet or app. Recommended columns: Date, Vendor, Amount, Payment Method, Category (travel, résumé, agency, training), Business Purpose/Notes, Receipt link/image.

4. Photograph receipts at the time you get them and store them in a cloud folder (organized by month). Many apps will OCR receipts for easier searching.

5. Separate personal and job-search use. If you combine personal travel with job search, track only the business portion and be ready to justify the allocation.

6. Reconcile quarterly. Review your log and receipts every 90 days—this short cycle prevents lost receipts and reduces stress at tax time.

Tools I often recommend to clients: expense-tracking apps that attach receipts to transactions, dedicated mileage trackers, and a simple Google Sheets or Excel template if you prefer manual control.

What records the IRS expects

• Receipts or invoices for purchases and services.
• A contemporaneous mileage log or electronic equivalent that shows date, purpose, starting/ending odometer and miles driven.
• Confirmation emails or appointment notices for interviews, recruiters’ contracts, and proof of payment to résumé or course providers.
• If you claim vehicle expenses, documentation of how you calculated business miles (or proof if using the standard mileage rate).

Keep records for at least three years after filing; if you understate income or the IRS suspects fraud, longer retention may be needed. See the IRS recordkeeping guidance for details.

How to report deductible job-search costs (when allowed)

• Self-employed/independent contractors: Report qualifying job-search and business development expenses on Schedule C (Form 1040) as ordinary and necessary business expenses. This reduces net business income subject to self-employment tax and income tax.
• Employees or unemployed taxpayers: Historically reported on Schedule A as miscellaneous itemized deductions subject to the 2% floor. For tax years 2018–2025 these deductions are suspended—do not expect a Schedule A deduction unless the law changes.

If you think you qualify for an exception (for example, certain moving-related deductions or military exceptions), attach supporting documentation and consult a tax professional.

Practical examples and a sample log entry

Example 1 — Self-employed consultant:

• Spent $420 on travel to pitch a client, $60 on printed portfolios, and $120 on sponsored job ads targeted to decision-makers. These are ordinary and necessary business expenses and were reported on Schedule C.

Example 2 — Employed job seeker (pre-TCJA rules):

• Spent $300 on résumé services and $200 on mileage to interviews. Under older law these would be miscellaneous itemized deductions; currently they are not deductible (2018–2025 suspension).

Sample spreadsheet row:
| Date | Vendor | Amount | Category | Purpose | Receipt |
| 2025-02-14 | Express Resume Co. | $275 | Résumé | Resume rewrite for data analyst roles (current occupation) | ReceiptIMG001.jpg |

Common mistakes and how to avoid them

• Assuming every job-search cost is deductible: Confirm your filing status and whether you’re self-employed.
• Poor recordkeeping: Tossing receipts or not logging mileage will make deductions impossible to substantiate.
• Mixing personal and business travel without clear allocation: Keep separate records and only claim the business portion.
• Failing to update based on law changes: The deductibility landscape shifted under TCJA; monitor IRS guidance or consult a CPA.

When to talk to a tax professional

• You are self-employed and unsure which costs qualify as ordinary and necessary.
• You had a large job-search year with significant travel or placement fees.
• You’re combining job search with a business startup and need to separate startup vs. ordinary business costs.

In my practice, I review clients’ logs and receipts before tax filing. Often a brief consultation helps convert ambiguous items into defensible deductions or recommends other tax-favored approaches (e.g., business-classified education deduction vs. a tax credit for education).

Alternatives and tax-adjacent options

• Education tax credits (Lifetime Learning Credit or American Opportunity Credit) may help with qualifying course costs if you meet the requirements.
• If you’re unemployed and incurring major costs, prioritize building an emergency fund and look for employer-paid training benefits or grant programs.

Internal resources

For related guidance and deeper dives, see our practical pieces:

• Tax Rules for Job Searches and Moving for Work — https://finhelp.io/glossary/tax-rules-for-job-searches-and-moving-for-work/
• Deducting Job-Search Expenses: Rules and Records — https://finhelp.io/glossary/deducting-job-search-expenses-rules-and-records/

Final checklist before claiming anything

1. Confirm your taxpayer status (employee vs. self-employed).
2. Make sure the expense is ordinary, necessary, and directly tied to your business or job search in your current occupation.
3. Gather receipts, logs, and proof of purpose.
4. Use the correct form (Schedule C for business expenses). Do not assume Schedule A deductions for job search costs for 2018–2025.
5. Consult a CPA if you are unsure or if deductions are material to your return.

Disclaimer

This article is educational and not individualized tax advice. Tax law can change; verify guidance on the IRS website and consult a qualified tax professional about your specific situation. IRS resources referenced include Topic No. 511 and Schedule C instructions (irs.gov).

Selected authoritative links

• IRS Topic No. 511, Job Search Expenses (irs.gov)
• IRS standard mileage rates (irs.gov)