Employee Business Expense Deduction Reinstatement Act of 2023

Employee Business Expense Deduction Reinstatement Act of 2023

This bill reinstates the tax deduction for the itemized miscellaneous expenses of employees performing services in a trade or busines (the deduction is currently suspended for the period beginning in 2018 through 2025). The amount the an employee may take into account in computing the deduction is 85% of unreimbursed food, lodging, travel, or transportation expenses.

The bill also lowers the threshold for the deduction to the extent its aggregate amount exceeds 1% (2% under current law).

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5802 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5802

   To amend the Internal Revenue Code of 1986 to allow unreimbursed 
 employee expenses to be taken into account as miscellaneous itemized 
                              deductions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2023

 Mr. Grothman (for himself, Mr. Biggs, Mr. Mike Garcia of California, 
 Mr. Santos, and Mr. Harris) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow unreimbursed 
 employee expenses to be taken into account as miscellaneous itemized 
                              deductions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Business Expense Deduction 
Reinstatement Act of 2023''.

SEC. 2. UNREIMBURSED EMPLOYEE EXPENSES TAKEN INTO ACCOUNT AS 
              MISCELLANEOUS ITEMIZED DEDUCTION.

    (a) In General.--Section 67(g) of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``Through 2025.--Notwithstanding subsection 
        (a)'' and inserting the following; ``Through 2025.--
            ``(1) In general.--Notwithstanding subsection (a), and 
        except to the extent provided in paragraph (2)'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Exception for unreimbursed food, lodging, travel, or 
        transportation expenses of employees.--For such taxable years--
                    ``(A) In general.--An individual may take into 
                account under subsection (a) 85 percent of any 
                miscellaneous itemized deductions for the taxable year 
                which are unreimbursed food, lodging, travel, or 
                transportation expenses paid or incurred by the 
                individual in connection with the performance of 
                services as an employee.
                    ``(B) Modified floor.--Subsection (a) shall be 
                applied by substituting `1 percent' for `2 percent'.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 11045 of Public Law 115-97 (commonly 
known as the Tax Cuts and Jobs Act).
    (c) Extension of Statute of Limitation on Credit or Refund.--If the 
period of limitation on a credit or refund resulting from the 
amendments made by subsection (a) expires before the end of the 1-year 
period beginning on the date of the enactment of this Act, refund or 
credit of such overpayment (to the extent attributable to such 
amendments) may, nevertheless, be made or allowed if claim therefor is 
filed before the close of such 1-year period.
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