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For self-employed taxpayers, travel expenses are subject to the 2%-of-AGI floor.

a. True
b. False

User JensS
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1 Answer

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Final answer:

The claim that self-employed taxpayers' travel expenses are subject to a 2%-of-AGI floor is false due to changes in tax law from the Tax Cuts and Jobs Act of 2017, which allows these deductions in full on Schedule C.

Step-by-step explanation:

The statement regarding self-employed taxpayers and their travel expenses being subject to a 2%-of-AGI floor is false. The Tax Cuts and Jobs Act of 2017 eliminated the miscellaneous itemized deductions that were previously subject to the 2% floor for the tax years 2018 through 2025. Therefore, self-employed individuals can deduct their travel expenses in full as business expenses on Schedule C, without being subject to the 2%-of-AGI floor that previously applied to miscellaneous itemized deductions for individuals who were not self-employed.

User EinUsername
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