Final answer:
The statement is false because the Tax Cuts and Jobs Act has suspended miscellaneous itemized deductions subject to the 2%-of-AGI floor, which includes unreimbursed employee expenses, for tax years 2018 to 2025.
Step-by-step explanation:
The unreimbursed work-related expenses of an employee will not be subject to the 2%-of-AGI floor because the Tax Cuts and Jobs Act, effective from 2018 to 2025, suspends miscellaneous itemized deductions subject to the 2% floor under the Internal Revenue Code.
This includes the deduction for unreimbursed employee expenses. Thus, employees cannot claim a tax deduction for these expenses on their federal income tax returns during this period.
Final answer:
Unreimbursed work-related expenses of an employee are subject to the 2%-of-AGI floor.
Step-by-step explanation:
The statement is true. Unreimbursed work-related expenses of an employee are subject to the 2%-of-AGI floor.
This means that if the total unreimbursed work-related expenses of an employee exceed 2% of their Adjusted Gross Income (AGI), they can deduct the excess amount on their income tax return.