What difference does it make if a taxpayer’s expenses are classified as unreimbursed employee expenses rather than expenses from self-employment?
1. Unreimbursed employee expenses are subject to a hurdle of 2% of the taxpayer’s AGI. They also require the taxpayer to itemize before the deduction can be taken.
2. Expenses from self-employment are deducted above the line and have no AGI floor.
3. Unreimbursed employee expenses are deducted above the line and have no AGI floor.