Question

Shelley is employed in Texas and recently attended a two-day business conference at the request of her employer. Shelley spent the entire time at the conference and documented her expenditures (described below). What amount can Shelley deduct if she is not reimbursed by her employer?

1) 2,850
2) 2,740
3) 1,850 if Shelley's AGI is 50,000
4) All of these expenses are deductible if Shelley attends a conference in Texas.
5) None of the expenses are deductible by an employee.

Answer 1

None of Shelley's business-related expenses are deductible on her tax return if she is not reimbursed by her employer due to the Tax Cuts and Jobs Act of 2017, which suspended miscellaneous itemized deductions for tax years 2018-2025.

Step-by-step explanation:

The question asks what amount Shelley can deduct for her business-related expenses if she is not reimbursed by her employer for attending a two-day business conference in Texas. Under the Tax Cuts and Jobs Act of 2017, miscellaneous itemized deductions, including unreimbursed employee expenses, are no longer deductible for tax years 2018-2025. Therefore, even legitimate business expenses incurred by an employee, such as Shelley, cannot be deducted if she itemizes her deductions on her federal income tax return during this period.

This change affects expenses such as travel, mileage, business meals, and any other work-related expenses that are not reimbursed by the employer. The correct answer to this question is that none of the expenses are deductible by an employee like Shelley until possibly after 2025, unless tax laws change again.