Can You Write Off Job Search Expenses on Your Taxes?

Searching for a new job can be expensive, from updating your resume to traveling for interviews. Many people wonder if these costs can be deducted on their taxes.

Tax laws regarding job search expenses have changed in recent years, affecting whether you can claim them. Understanding these rules is key before assuming any tax benefits.

Eligibility Criteria

The Tax Cuts and Jobs Act (TCJA) of 2017 suspended the deduction for job search expenses from 2018 through 2025. Previously, individuals could claim these costs as a miscellaneous itemized deduction if they exceeded 2% of their adjusted gross income (AGI). Now, most employees cannot deduct these expenses.

Self-employed individuals, however, may still qualify if the expenses are “ordinary and necessary” for their business. This includes costs associated with finding new clients or contracts, as long as they directly relate to maintaining or expanding the business.

Before the TCJA, job search expenses were only deductible if they were for a position in the same field. While this restriction is currently irrelevant for most taxpayers, it still applies to self-employed individuals and could become important again if the deduction is reinstated.

Deductible Job Search Costs

Although most employees cannot deduct job search expenses, self-employed individuals may claim certain costs as business expenses. These must meet IRS guidelines, meaning they must be common in the industry and necessary for business operations. Qualifying expenses include travel for interviews, resume preparation, and fees paid to employment agencies.

Travel and Transportation

Self-employed individuals may deduct travel expenses related to seeking new business opportunities or clients if they meet IRS requirements. These costs must be directly tied to business activities, not personal travel. Deductible expenses include mileage, airfare, lodging, and meals incurred while attending networking events, meeting potential clients, or traveling for contract-related interviews.

The IRS allows self-employed taxpayers to deduct mileage using the standard mileage rate, which is updated annually. For 2024, the rate is 67 cents per mile. Alternatively, actual vehicle expenses—such as gas, maintenance, and depreciation—can be deducted if properly documented. If a trip includes both business and personal activities, only the business-related portion is deductible. Keeping detailed records, including receipts and a mileage log, is necessary to support these deductions.

Resume and Printing

Self-employed individuals may deduct costs related to preparing and distributing resumes if they are directly tied to securing new business. This includes expenses for professional resume writing services, printing, mailing, and online job board fees used to attract clients or contracts.

For example, if a freelance consultant spends $200 on a professionally written resume and $50 on printing and mailing copies to potential clients, these costs can be deducted. Digital expenses, such as fees for maintaining a personal website or a LinkedIn Premium subscription used for networking, may also qualify if primarily for business purposes. Proper documentation, such as invoices and receipts, is required.

Placement Agency Services

Self-employed individuals who pay for job placement or recruiter services to secure new contracts or clients may deduct these costs. This includes fees paid to staffing agencies, headhunters, or online platforms that connect freelancers with potential clients.

For instance, if a freelance graphic designer pays a recruiter $500 to help secure new projects, this expense is deductible as long as it directly relates to their business. Subscription fees for platforms like Upwork or Fiverr may also qualify if used primarily for business purposes. Taxpayers should maintain records of payments, contracts, and correspondence with placement agencies to demonstrate the business necessity of these expenses.

Non-Deductible Expenses

Many job seekers incur costs that might seem deductible but do not meet IRS guidelines. Clothing purchases, for example, are not deductible, even if bought specifically for interviews. The IRS considers business attire, such as suits or dress shoes, personal expenses unless they are specialized uniforms that cannot be worn outside of work.

Educational courses or certifications taken to improve job prospects are also not deductible unless directly related to maintaining or improving skills for an existing business. For example, if someone enrolls in a coding boot camp to transition into a tech career, the cost is not deductible. However, continuing education required for an existing self-employed business, such as an accountant taking a tax law update course, may still qualify. The IRS differentiates between maintaining professional knowledge and acquiring new skills for a career change, allowing deductions only for the former.

Membership fees for professional organizations are generally not deductible unless directly tied to a self-employed business. While networking events and industry conferences can be valuable, costs associated with attending these events—such as registration fees or travel—are not deductible unless they serve an existing business purpose. Similarly, subscriptions to industry publications or premium job board memberships are considered personal expenses unless used exclusively for business.

Recordkeeping

Accurate recordkeeping is essential for self-employed individuals claiming job-related expenses. The IRS requires all deductions to be substantiated with proper documentation. Failing to maintain adequate records can lead to disallowed deductions in an audit.

Receipts and invoices should be kept for all deductible expenses, including the date, amount, and description of the expense. Digital records, such as email confirmations or bank statements, can also serve as supporting evidence. Maintaining a log that categorizes expenses by type and business purpose helps substantiate claims. The IRS generally has three years to audit returns, but in cases of substantial errors, this period can extend to six years.

Bank and credit card statements can help verify expenses, but they are not sufficient on their own. The IRS prefers original receipts, as they provide specific details about purchases. If an expense is shared between personal and business use, a clear method of allocation is necessary. For example, if a phone is used for both personal and business purposes, a reasonable percentage of the bill should be documented as a business expense, supported by call logs or usage reports.

Claiming These Deductions

Self-employed individuals must report job-related expenses correctly on their tax returns. These costs are typically deducted as business expenses on Schedule C (Form 1040), which reports profit or loss from a sole proprietorship. The IRS categorizes deductible expenses into different sections on this form, so placing each cost in the appropriate category is important.

When filling out Schedule C, job search expenses should be listed under relevant categories, such as “Advertising” for resume services or “Legal and Professional Services” for recruiter fees. Travel-related costs, including mileage and lodging, should be recorded under “Travel” or “Car and Truck Expenses,” depending on the nature of the expense. If a cost has both personal and business components, only the business portion should be deducted, with a clear method of allocation documented. The IRS may request additional documentation to verify these deductions, so maintaining organized records is essential.

In some cases, job-related expenses may also be deducted on Schedule SE (Self-Employment Tax), which calculates Social Security and Medicare taxes for self-employed individuals. Reducing taxable income through legitimate business deductions can lower self-employment tax liability. Taxpayers unsure about the proper classification of expenses should consult a tax professional to ensure compliance with IRS regulations and maximize allowable deductions.