You can claim job-hunting costs as miscellaneous itemized deductions to the extent that they (and other miscellaneous deductions) exceed 2% of your Adjusted Gross Income. To be eligible for such deductions you must be looking for a job in your present line of work or in a related field. (You can claim these deductions even if you don’t get a new job.)
The taxpayer reduced their taxable income by $5,000 by deducting the costs of looking for a job. Since the taxpayers income was taxed at the 30% tax bracket, the income reduction may decrease their income taxes by $1,500 ($5,000 x 30%).
Tax Reduction: If you are in a combined (federal, self-employment, and state) tax bracket of 30%, you could reduce your taxes up to $300 for every $1,000 of income reduction by deducting the costs of looking for a job.