By Ben Reiland, Motus
How Does the TCJA change old tax law?
Well, as we said in our previous blog on this topic, it doesn’t change a whole lot.
Effective January 1, 2018, an employee no longer has the ability to claim a business expense deduction for unreimbursed business expenses that exceed 2% of their adjusted gross income via Schedule A and Form 2106.
To put that into perspective, in 2016, over 5 million tax payers claimed mileage as unreimbursed business expenses. This amounted to $35 billion dollars in deductions. If you aren’t self-employed and you previously claimed your mileage as a business expense deduction on your taxes, unfortunately, you can’t do that anymore.
How does the TCJA directly impact you?
That depends on the reimbursement you’re currently receiving. Let’s look at an example: READ MORE