Quick answer
Most individual job search costs are not deductible on your federal return for tax years through 2025. The Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions subject to the 2% of adjusted gross income floor — the category that previously included job‑hunting expenses — so most taxpayers cannot claim them for now (see IRS Topic No. 511) [IRS]. However, narrow exceptions and some state tax rules can still produce deductible situations.
Why job‑search costs used to be deductible
Before TCJA, a job seeker could claim unreimbursed costs for a job search in the taxpayer’s current occupation as miscellaneous itemized deductions on Schedule A (Form 1040), subject to the 2% of AGI floor. Common deductible items included travel for interviews, resume and placement fees, and certain professional dues if the search was for work in the same field.
What changed under TCJA (through 2025)
The TCJA suspended miscellaneous itemized deductions that were reported on Schedule A and subject to the 2% floor. That means the usual federal deduction path for job search expenses is not available for tax years beginning in 2018 through 2025. This is the practical rule for most employees and job seekers at the federal level today (IRS Topic No. 511; IRS Publication 529).
Key federal eligibility rules (what would have mattered)
- Same occupation rule: Deductions were allowed only when the search was for a position in your current occupation or a closely related field. Costs to change careers were not deductible.
- Active search and timing: Expenses had to be incurred while you were actively looking for a job — a significant break in the search can undermine deductibility.
- Types of expenses: Typical categories included travel and transportation to interviews, resume and placement fees, certain telephone and postage costs, and union or professional dues related to the job search.
- Reporting historically: These expenses were grouped as miscellaneous itemized deductions on Schedule A and counted only to the extent that total miscellaneous deductions exceeded 2% of AGI.
Why the distinction (same occupation vs. career change) matters
Tax law treats job search expenses as remedial costs to keep or resume the same trade or business. If you’re changing fields — for example, moving from finance into culinary arts — the expenses are seen as investment in a new career, not deductible as job search.
Common job‑search expense categories (what to track)
- Travel and transportation for interviews: mileage, airfare, lodging, local transit where directly tied to interviews.
- Resume, portfolio, and LinkedIn premium or professional writing services used specifically for positions in your current field.
- Placement or recruiter fees you pay personally (some recruiters are paid by employers; those are not deductible by you).
- Postage, telephone, and job‑related supplies for applications and interviews.
- Employment‑related education expenses only if they maintain or improve skills in your current job (distinct rules apply).
Recordkeeping: what I tell clients
In my CPA practice I always tell clients: keep detailed records even when the deduction is suspended. If tax rules change, retroactive adjustments or audit scenarios make good records valuable.
- Save receipts and an annotated log showing dates, purpose, and connection to your occupation.
- Keep calendars or emails that corroborate interview dates and locations.
- Separate job search expenses from personal travel to avoid accidental commingling.
State returns and exceptions
Some states do not conform to the TCJA suspension and may still allow job search expense deductions or other credits. If you live in a state with its own itemized deduction rules, you could have a state deduction even if your federal return gives none. Check your state tax agency guidance or consult a tax pro for state‑specific rules.
Narrow federal exceptions and related deductible situations
- Self‑employed individuals: If you are self‑employed or running a business, job‑search or client‑development costs may be ordinary business expenses deductible on Schedule C rather than Schedule A.
- Employer reimbursements: If your employer reimburses job search expenses (rare), those reimbursements are generally excluded from income if they’re under an accountable plan; otherwise they may be taxable wages.
- Moving for a job: Previously, some moving expenses for members of the Armed Forces were deductible; for civilians, the moving expense deduction was suspended by TCJA except for certain military moves. The distinction matters because moving deductions are governed separately from job search rules.
Practical examples from practice
Example 1 — The same‑field job seeker
I worked with a client laid off from a marketing role who spent $1,100 on interviews and resume services while seeking another marketing position. Under pre‑TCJA rules the expenses could have been itemized as miscellaneous deductions. Under current federal law they do not reduce taxable income. However, we reviewed their state return rules and found partial state‑level relief.
Example 2 — Self‑employed consultant
A freelance IT consultant who pursued new clients and paid for travel and brochures could deduct those costs as ordinary business expenses on Schedule C because the activity was part of running a business — not a miscellaneous Schedule A deduction.
How to document and prepare now (action checklist)
- Track every job‑search expense with a short note about the job title and how it relates to your current occupation.
- Keep supporting items (receipts, itineraries, recruiter invoices, screenshots of paid services) in a folder or cloud storage.
- Maintain a dated calendar or email record that shows you were actively searching during the listed period.
- Separate business‑vs‑employee activity. If you’re a contractor, treat marketing/client acquisition costs as business expenses.
- Review state tax rules before filing; you may find opportunities there.
Common mistakes and myths
- Myth: “If I travel for interviews it’s automatically deductible.” Reality: Not on most federal returns through 2025; exceptions are narrow.
- Mistake: Failing to document purpose of a trip and mixing it with personal travel. That practice kills audit defense.
- Myth: “I can deduct resume help if it leads to a job.” You must meet the same‑occupation test and, again, federal deductions are suspended through 2025 for most taxpayers.
Where these expenses would be claimed if allowed
Historically, job‑hunting costs were claimed as miscellaneous itemized deductions on Schedule A (Form 1040). That line remains on the form, but the category’s practical effect is suspended for most filers under current federal law (TCJA). For business owners or self‑employed people, related costs are typically reported on Schedule C.
Related resources on FinHelp
- Deducting Job Search and Relocation Costs: Eligibility and Limits — a deeper look at when relocation and job search costs cross into deductible territory (https://finhelp.io/glossary/deducting-job-search-and-relocation-costs-eligibility-and-limits/).
- Deducting Job‑Search Expenses: Rules and Records — a companion guide focused on recordkeeping and real examples (https://finhelp.io/glossary/deducting-job-search-expenses-rules-and-records/).
- Tax Cuts and Jobs Act (TCJA) — explanation of the federal law changes that suspended miscellaneous itemized deductions (https://finhelp.io/glossary/tax-cuts-and-jobs-act-tcja/).
Authoritative sources and further reading
- IRS Topic No. 511, Job Search Expenses: https://www.irs.gov/taxtopics/tc511 (review for current IRS guidance) [IRS].
- IRS Publication 529, Miscellaneous Deductions: explains categories historically subject to the 2% floor and current suspension status.
Professional disclaimer
This article is educational and not individualized tax advice. Tax law changes periodically; consult a qualified tax professional or your state tax agency to evaluate how these rules apply to your situation.
Bottom line
For most taxpayers, job‑hunting expenses are not deductible on the federal return for tax years through 2025 because of the TCJA suspension of miscellaneous itemized deductions. Keep careful records anyway, review your state tax rules, and consult a tax professional if you have unusual facts (self‑employment, reimbursements, or a job search that clearly qualifies under narrow exception rules).
