Navigating the job search process can be expensive. From dry-cleaning your interview suit to printing resumes, the costs can quickly add up. You might be wondering, “Can you claim travel expenses for a job interview?” While the answer used to be a conditional “yes,” current tax laws have temporarily changed the landscape.
Under the Tax Cuts and Jobs Act (TCJA), the deduction for job search expenses is suspended for most taxpayers for tax years beginning after December 31, 2017, through January 1, 2026. This means that, for now, you likely can’t deduct those costs. However, it’s still useful to understand the previous rules and potential future changes.
Understanding the Former Rules for Job Search Expense Deductions
Before the TCJA suspension, there were specific criteria you needed to meet to deduct job search expenses. It’s worth understanding these rules in case they are reinstated in the future.
Same Occupation Requirement
One of the most important stipulations was that you could only deduct expenses if you were looking for a new job in the same occupation. A career change meant your expenses weren’t deductible. For example, transitioning from a marketing specialist to a sales manager might qualify, but switching from a teacher to a software developer likely wouldn’t.
Not Your First Job Search
The IRS also didn’t allow first-time job seekers to deduct their job search expenses. This meant that if you were entering the workforce for the first time, you couldn’t claim these deductions.
Deductible Job Search Expenses Before TCJA
If you met the criteria, here are some common job search expenses that were previously deductible:
- Resume Expenses: The costs associated with preparing and printing your resume were deductible. This included paying a resume writer, purchasing high-quality paper, and postage if you mailed your resume.
- Job Search Assistance: Fees paid to recruiters, placement agencies, or online job search websites that required subscriptions were also deductible.
- Travel Expenses: This is where the question “Can You Claim Travel Expenses For Job Interview?” comes into play. If you traveled for job interviews, you could deduct expenses like airfare, parking, meals, public transit, hotel stays, and taxi fares, even if you didn’t get the job.
- Becoming Self-Employed: If your job search involved transitioning to self-employment or freelancing within your existing occupation, certain related expenses were deductible.
When Job Search Expenses Were NOT Deductible
Even before the TCJA suspension, there were several situations where job search expenses were not deductible.
- Reimbursement: If your expenses were reimbursed by an employer (e.g., the company paid for your airfare), you couldn’t deduct them.
- First-Time Job Seekers: As mentioned earlier, first-time job seekers were not eligible.
- Career Change: Expenses incurred while seeking a job in a different occupation were not deductible.
- Significant Break in Employment: If there was a long gap between your last job and your current job search (e.g., taking time off to raise children), you might not be eligible.
- Not Itemizing Deductions: Job search deductions were considered “miscellaneous” deductions and could only be claimed if you itemized your deductions. If you took the standard deduction, you couldn’t deduct these expenses.
The Current Suspension and What to Do
Again, it’s crucial to remember that the TCJA suspended the deduction for job search expenses for most taxpayers from 2018 through 2025. This means that, for now, the answer to “can you claim travel expenses for job interview?” is generally no.
While you can’t deduct these expenses right now, staying informed about potential changes to tax laws is essential. Consult a tax professional for personalized advice.
Disclaimer: Tax laws are subject to change. This information is for general guidance only and not financial or legal advice. Always consult with a qualified tax professional for personalized advice.
