Question

Under the new tax law, 'TCJA', which of the following expenses are NO longer deductible?

1) Unreimbursed employee business expenses
2) Tax preparation fees
3) Investment expenses
4) Safe deposit box rental fees
5) Moving expenses

Answer 1

Under the TCJA, unreimbursed employee business expenses, tax preparation fees, investment expenses, safe deposit box rental fees, and moving expenses are no longer deductible. These changes can have a significant impact on taxable income and tax liability.

Step-by-step explanation:

Under the Tax Cuts and Jobs Act (TCJA), several deductions that taxpayers were previously able to claim have been eliminated or changed. The expenses that are no longer deductible under the new tax law include:

• Unreimbursed employee business expenses

• Tax preparation fees

• Investment expenses

• Safe deposit box rental fees

• Moving expenses for most taxpayers

These changes can significantly affect a person's taxable income, and consequently, their income tax liability. It's important for taxpayers to be aware of these changes to plan accordingly during tax preparation. Among these changes, the suspension of unreimbursed employee business expenses is particularly impactful for many employees who previously deducted work-related expenses that were not reimbursed by their employer.