Are job-hunting expenses deductible when searching for new employment?

Generally no. Job-hunting expenses are not deductible for most taxpayers, even if you’re searching for a job in the same field. The main exception applies to self-employed individuals and a few narrow statutory categories.

Why Job Search Expenses Are Usually Not Deductible

The Tax Cuts and Jobs Act suspended miscellaneous itemized deductions subject to the 2% AGI floor, including unreimbursed employee expenses, starting in 2018, and the One Big Beautiful Bill Act made that elimination permanent for 2026 and later years (with a new exception only for educator expenses)

As a result, expenses such as:

• Resume preparation
• Career coaching
• Travel for interviews
• Placement agency fees
• Job boards and applications

are not deductible for most W-2 employees.

When Job-Hunting Expenses Can Be Deductible

Self-Employed Individuals

If you are self-employed and searching for new clients or contracts in the same line of work, related expenses may be deductible as ordinary and necessary business expenses.

Examples:

• A freelance designer seeking new clients
• An independent consultant pursuing new contracts

These are business development costs-not job search expenses-and are deductible under IRC §162.

Not deductible if you are:

• Entering a new trade or business
• Searching for your first business activity

Statutory Above-the-Line Exceptions

Certain taxpayers may still deduct unreimbursed employee expenses above the line:

• Armed Forces reservists
• Qualified performing artists
• Fee-basis state or local government officials

These deductions are claimed on Schedule 1 (Form 1040) and are not affected by the TCJA suspension.

Not Deductible

• Expenses to find your first job
• Costs to switch to a new career field
• Job search expenses while unemployed as a W-2 employee
• Personal networking or education unrelated to current work

Summary

For 2025, job-hunting expenses are generally not deductible for employees.

Self-employed individuals may deduct costs incurred to find work in the same trade or business, and a few statutory exceptions remain. Everyone else must treat job search costs as personal, nondeductible expenses.

Source:

• IRC §67(g) - Suspension of miscellaneous itemized deductions
• IRC §162 - Ordinary and necessary business expenses
• IRC §62(a)(2)(B) - Above-the-line deductions for certain employees
• IRS Publication 529, Miscellaneous Deductions
• IRS Publication 334, Tax Guide for Small Business