Shelley is employed in Texas and recently attended a two-day business conference in New Jersey.Shelley spent the entire time at the conference and documented her expenditures (described below).What amount can Shelley deduct as an employee business expense (before considering any miscellaneous itemized deduction limitations)?
A) $2,850
B) $2,740
C) $1,850 if Shelley's AGI is $50,000
D) All of the expenses are deductible if Shelley is reimbursed under an accountable plan.
E) None of the expenses are deductible - only employers can deduct travel expenses.

Question

Shelley is employed in Texas and recently attended a two-day business conference in New Jersey.Shelley spent the entire time at the conference and documented her expenditures (described below).What amount can Shelley deduct as an employee business expense (before considering any miscellaneous itemized deduction limitations)? 
A) $2,850 
B) $2,740 
C) $1,850 if Shelley's AGI is $50,000 
D) All of the expenses are deductible if Shelley is reimbursed under an accountable plan. 
E) None of the expenses are deductible - only employers can deduct travel expenses.

Quizplus · Accepted Answer

Shelley can deduct the cost of airfare ($750), hotel accommodations ($800), and conference registration fees ($1,190), for a total of $2,740. Meals and incidental expenses are not deductible for employees, unless they are away from their tax home overnight on business travel. The answer assumes that Shelley is not reimbursed for these expenses by her employer.

Shelley Is Employed in Texas and Recently Attended a Two-Day