Quick answer

Under current federal tax law (as of 2025), job-search expenses and most moving-related deductions are not available to the typical taxpayer because the Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions and the moving expense exclusion for employees for tax years 2018 through 2025. The principal federal exception is active‑duty members of the U.S. Armed Forces who move due to a military order; they can still claim qualifying moving expenses (see IRS Form 3903 and Publication 521) (IRS).

Why this matters

Many people assume the pre‑2018 rules still apply. In my practice advising clients during career transitions, I’ve seen wasted tax preparation time and disappointment when interview travel or moving costs can’t be deducted. Knowing what is and isn’t allowed helps you negotiate with employers, manage cash flow during a move, and keep the right receipts in case laws change.

Current federal rules — short summary

  • Job‑search expenses: General job-search costs (travel to interviews, résumé services, recruiter fees, placement agency fees) are not deductible on the federal return for most taxpayers because the miscellaneous itemized deductions category remains suspended under the TCJA (suspended through 2025) (IRS).
  • Moving expenses: Employee moving expense exclusion and deduction were suspended for most taxpayers; employer reimbursements for moving are generally taxable wages for civilian employees (unless an employer sets up a taxable gross‑up or special arrangement).
  • Military exception: Active‑duty members of the Armed Forces who move due to a military order can still deduct qualifying moving expenses and use Form 3903 to calculate the deduction; those amounts are reported as an adjustment to income (IRS – Form 3903 / Publication 521).
  • State taxes: Several states did not conform to the TCJA suspension in the same way; some still allow moving or job‑search deductions on the state return. Always check state rules.

Authoritative sources

State issues and where to check

Some states treat moving and job‑search costs differently from federal law. For example, if you move across state lines for work, you may face dual filing or residency tests that affect withholding and taxable income. FinHelp has practical guides on state filing impacts and when moving costs are deductible for state tax purposes:

How employer reimbursements are treated

  • Employer reimbursements for moving or job-search expenses are generally taxable wages to the employee for federal income tax (and subject to payroll taxes) unless the reimbursement qualifies under a specific, tax‑favored plan. Because most federal exclusions were suspended by the TCJA, employers who historically offered tax‑free relocation packages must now either report reimbursements as wages or create other compensation arrangements.
  • If your employer treats a moving reimbursement as taxable income, you’ll owe ordinary income tax (and possibly Social Security and Medicare) on it. Example: if an employer pays $5,000 of moving costs and reports it as wages, a taxpayer in the 24% marginal federal bracket could expect roughly $1,200 in federal income tax (plus any applicable payroll and state income taxes), leaving about $3,800 after federal income tax.
  • In negotiation, ask for a gross‑up (employer pays extra to cover the tax) or a separate signing/relocation bonus that you can use however you like — either may be preferable to a taxable reimbursement because you control how the money is spent.

Who still qualifies at the federal level

  • Active‑duty U.S. Armed Forces members moving due to a military order and permanent change of station (PCS) can deduct or exclude qualifying moving expenses. Use Form 3903 and Publication 521 for details (IRS).
  • Civilians: generally no federal deduction for job search or moving expenses for tax years 2018–2025 unless Congress changes the law.

Practical alternatives and strategies

1) Negotiate compensation structure. If your employer won’t provide tax‑free relocation, negotiate a relocation bonus or gross‑up to offset taxes. A gross‑up increases your taxable pay but the employer covers the tax so your net benefit remains larger.

2) Use employer-provided non-taxable benefits where available. Some employers provide temporary housing stipends or direct-pay vendor arrangements that lower your out‑of‑pocket cost even if amounts are taxable.

3) Consider employer assistance vs. reimbursement. A lump-sum relocation payment may be simpler to use than vendor-restricted reimbursements. Ask HR for clear documentation of what will be reported on your W‑2.

4) Leverage state tax rules. If your state still allows a moving expense deduction or has favorable residency rules, there may be state-level tax relief even when federal relief doesn’t apply. See FinHelp’s state guides linked above.

Recordkeeping and documentation

Even if you can’t claim a deduction now, keep detailed records. If law changes, those records may help you amend returns. Useful documents include:

  • Receipts for travel, lodging, packing, movers, storage and vehicle transportation
  • Employer communications about relocation benefits and copies of reimbursements shown on your W‑2
  • Military orders and PCS documents for service members (essential when claiming a deduction)
  • Notes about job search activity (interviews, dates, locations) — useful for proving business purpose if rules change

How to claim the military moving deduction (brief how-to)

1) Complete IRS Form 3903 (Moving Expenses) to compute qualified moving expenses allowed for active‑duty military personnel.
2) Transfer the deductible amount to Schedule 1 (Form 1040) as an adjustment to income, per the instructions on Form 3903 and Publication 521 (IRS).

Common mistakes I see

  • Assuming old rules still apply. Many taxpayers expect interview travel or moving costs to be deductible — they aren’t for civilians through 2025.
  • Not confirming tax treatment of employer reimbursements. If HR says they’ll “pay moving costs,” get written details about how it’s reported on your W‑2.
  • Throwing away receipts. Some clients discarded receipts and later regretted it when state audits or future federal law changes required documentation.

Real-world example (practical calculation)

Client A received a $6,000 relocation payment that the employer reported as wages. The client’s marginal federal rate was 22% and state tax 5%. Federal income tax ≈ $1,320; state tax ≈ $300; payroll taxes ≈ $459 (7.65% employee share of FICA). Net after these taxes ≈ $3,921. By negotiating a $6,000 gross‑up instead, the client could have kept more of the benefit because the employer would have paid the tax on the $6,000 payment.

Keeping an eye on legislative changes

The TCJA provisions that suspended miscellaneous itemized deductions and the moving exclusion are set to expire after 2025 unless Congress acts. That means the landscape could change — and it’s exactly why detailed records and periodic tax check‑ins matter. Check the IRS website and trusted financial resources each tax season for updates (IRS; CFPB).

FAQ — short answers

  • Can I deduct travel to interviews? No, not for federal returns for tax years 2018–2025 unless you’re an eligible service member. Check state rules.
  • If my employer reimburses moving costs, is that taxable? Usually yes for civilian employees; check your W‑2 and ask HR.
  • Where do military taxpayers report moving expenses? Use Form 3903 and follow Publication 521 (IRS).

Bottom line

For most civilians, job‑search and relocation tax breaks at the federal level are effectively gone for now. Active‑duty military members retain relief. Given this reality, focus on negotiating compensation, documenting all costs, checking state tax options, and working with a tax professional to evaluate your specific situation.

Professional disclaimer

This article is educational and does not constitute personal tax advice. Laws can change; for advice tailored to your situation, consult a CPA, enrolled agent, or qualified tax attorney.

Further reading and internal resources

Sources

IRS Form 3903 and Publication 521; IRS news releases on job search tax tips; Consumer Financial Protection Bureau resources on moving and relocation planning.