Toby, a single taxpayer with no dependents, is an employee of a large consulting firm. During the year he incurs the following business expenses that are not reimbursed by his employer: Business entertainment and other meals $3,400 Transportation and lodging 4,200 Toby's AGI is $100,000 and is in the 28% marginal tax rate. In addition to the expenditures described above, his only other qualified itemized deductions are home mortgage interest of $6,000 and property taxes of $2,000. What is the after-tax cost to Toby of his unreimbursed employee business expenses?

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The Answer of Toby, a single taxpayer with no dependents, is an employee of a large consulting firm. During the year he incurs the following business expenses that are not reimbursed by his employer: Business entertainment and other meals $3,400 Transportation and lodging 4,200 Toby's AGI is $100,000 and is in the 28% marginal tax rate. In addition to the expenditures described above, his only other qualified itemized deductions are home mortgage interest of $6,000 and property taxes of $2,000. What is the after-tax cost to Toby of his unreimbursed employee business expenses?

Toby, a Single Taxpayer with No Dependents, Is an Employee