Quick answer
Under current law (tax years 2018–2025) most unreimbursed employee job-search expenses and miscellaneous itemized deductions are suspended. That means W-2 employees generally cannot claim job-hunting costs on Schedule A. However, self-employed taxpayers and business owners can deduct ordinary and necessary job-related or business-training expenses on Schedule C. Some education costs may qualify for education tax credits (e.g., the American Opportunity Credit or the Lifetime Learning Credit) or be deductible as business expenses if they maintain or improve skills required in your existing trade or business.
(For IRS guidance see Topic 511: Job Search Expenses and Publication 970: Tax Benefits for Education.)
What the law changed — brief history and current status
Historically, job-search expenses (resume help, travel for interviews, placement fees) were deductible as miscellaneous itemized deductions subject to the 2% of adjusted gross income (AGI) floor. The Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions for tax years 2018 through 2025, effectively eliminating those deductions for most employees during this period.
- Employee job-search expenses: Generally not deductible 2018–2025 (TCJA). See IRS Topic 511 (last reviewed 2024) for historical rules and notes on when expenses might still apply.
- Self-employed/business owners: Ordinary and necessary expenses directly related to your trade or business remain deductible on Schedule C.
- Education: Different rules apply — some tuition and fees qualify for credits (Form 8863) or are deductible if they are necessary to maintain or improve skills in your current job (see IRS Publication 970).
Who can still deduct what
- Self-employed, freelancers and independent contractors: Can report job-hunting or training expenses that are ordinary and necessary business expenses on Schedule C (Form 1040). Examples: advertising to find clients, professional training that improves your business skills, software or subscriptions used to secure work.
- Employees changing jobs in the same occupation: Prior to TCJA these costs could be deducted as miscellaneous itemized deductions; currently suspended unless Congress makes changes after 2025. (IRS Topic 511.)
- Students and degree-seekers: Most costs for education that qualifies you for a new trade or career are nondeductible as work-related expenses, but you may be eligible for education tax credits (American Opportunity Credit for eligible undergrads or the Lifetime Learning Credit for many postsecondary courses). See IRS Publication 970 for details.
- Active-duty military moving for a new job: Moving expenses remain deductible for certain members of the military (Publication 521).
Typical expenses and how they’re treated
- Resume and application fees: Historically deductible for a job search within your current occupation (when itemizing). Now generally non-deductible for employees during 2018–2025; deductible if a business expense for the self-employed.
- Employment agency or placement fees: Same treatment as resume fees.
- Interview travel and lodging: Deductible for business owners or if travel is for a business purpose; employees cannot usually deduct these travel costs as itemized deductions during the TCJA suspension. For business travel rules see IRS Publication 463.
- Career coaching and certification courses: Deductible as a business expense if the education maintains or improves skills required in your present job or if the training is required by your employer or by law to keep your pay or job. Costs to meet the minimum qualifications for a new trade or to qualify you for a new occupation typically are not deductible as business expenses but may be eligible for education credits.
- Relocation and moving costs: Generally suspended for most taxpayers 2018–2025 (except active-duty military). See Publication 521 for details. For more on relocation and job-search coordination see our piece on deducting job search and relocation costs.
Where to report deductions
- Schedule C (Profit or Loss from Business): For self-employed taxpayers — ordinary and necessary business expenses go here and reduce net business income.
- Schedule A (Itemized Deductions): Prior to 2018 and possibly after 2025, unreimbursed employee job-search expenses were reported as miscellaneous itemized deductions subject to the 2% AGI floor. For current years, this category is suspended.
- Form 8863: Education tax credits (American Opportunity and Lifetime Learning Credits) are claimed here.
How I use these rules in client work (practical context)
In my practice I often see two common situations:
- A W-2 employee changes roles within the same field and assumes job-search expenses will be deductible; I explain the TCJA suspension and work through alternative strategies such as employer reimbursement, pretax educational assistance (IRC §127), or using education tax credits where appropriate. Employer tuition assistance up to $5,250 per year can be tax-free if your employer offers it — that’s often an overlooked benefit.
- A freelancer invests in certifications and online courses to expand services. We treat those costs as Schedule C business expenses; they reduce self-employment tax and income tax liability directly when properly documented.
Recordkeeping: what to save
Good documentation turns a gray area into an audit-ready deduction. Save:
- Receipts and invoices (resume services, course fees, certification costs).
- Dates and purpose: Note why the expense was necessary and how it relates to your current trade or business.
- Mileage logs and travel itineraries for interview trips or business meetings.
- Written job-search records: copies of job listings, correspondence with recruiters, dates of interviews. These support the business purpose if you are self-employed.
I recommend using a labeled folder or digital scan system and keeping records at least three years after filing, though seven years can be prudent for business claims.
Examples (illustrative)
Example 1 — Self-employed web designer
- Online portfolio hosting: $120/year
- Certification course: $700
- Travel to client meetings (business miles): 500 miles at IRS mileage rate
These are ordinary and necessary business expenses and are deductible on Schedule C.
Example 2 — W-2 employee searching for a new job in the same occupation (post-2017 law)
- Resume service: $300
- Interview travel: $150
Under current law these expenses would not be deductible on Schedule A for tax years 2018–2025.
Example 3 — Student switching careers
- Career-specific degree program expenses are unlikely to be deductible as job-search costs and instead may be considered educational expenses eligible for credits like the Lifetime Learning Credit (Form 8863). Check Publication 970 for eligibility rules.
Common mistakes and how to avoid them
- Assuming all career-related expenses are deductible: Know the difference between business expenses, miscellaneous itemized deductions, and education credits.
- Poor documentation: Without receipts, dates, and a stated business purpose, deductions are at risk.
- Not checking employer benefits: Many employers offer tuition assistance or reimbursements that are tax-advantaged and reduce your out-of-pocket cost.
- Confusing qualification: Expenses that qualify you for a new trade or occupation are generally nondeductible as business expenses but may be eligible for education credits.
Practical tax planning tips
- Ask your employer to reimburse job-related expenses or provide tuition assistance — employer-paid assistance can be tax-free up to $5,250 under IRC §127 when offered as a benefit.
- If you’re self-employed, track expenses in real time using an app and categorize them for Schedule C.
- Evaluate whether itemizing ever made sense in pre-2018 years; if so, saved records may still support amended returns for certain circumstances.
- Consider education credits before assuming nondeductibility — the Lifetime Learning Credit covers a broad array of courses and can reduce tax dollar-for-dollar (see Pub 970).
Further reading and internal resources
- IRS Topic 511: Job Search Expenses (background and historical rules): https://www.irs.gov/taxtopics/tc511
- IRS Publication 970: Tax Benefits for Education (credits, exclusions, and when education is deductible): https://www.irs.gov/publications/p970
- IRS Publication 463: Travel, Gift, and Car Expenses (business travel rules): https://www.irs.gov/publications/p463
On FinHelp, see these related articles for deeper guidance:
- Deducting Job Search Expenses: When They Still Apply — https://finhelp.io/glossary/deducting-job-search-expenses-when-they-still-apply/
- Deducting Job Search and Relocation Costs: Eligibility and Limits — https://finhelp.io/glossary/deducting-job-search-and-relocation-costs-eligibility-and-limits/
- Deducting Job-Search Expenses: Rules and Records — https://finhelp.io/glossary/deducting-job-search-expenses-rules-and-records/
Bottom line
Most employees cannot deduct job-search expenses through 2025 because miscellaneous itemized deductions were suspended by the TCJA. Self-employed taxpayers can still deduct ordinary and necessary job-related and training expenses on Schedule C, and education costs may qualify for tax credits or be deductible as business expenses in limited cases. Careful documentation, early planning, and consulting a tax professional will help you maximize legitimate benefits while staying within the rules.
Professional disclaimer
This article is educational and does not constitute personalized tax advice. Rules change and individual circumstances vary — consult a qualified tax professional or CPA to determine how these rules apply to your situation.
