An employed taxpayer can avoid the cutback adjustment on entertainment expenses by claiming the standard deduction.

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The standard deduction is a specific amount that taxpayers can deduct from their taxable income before calculating their taxes. This deduction is available to all taxpayers, regardless of whether they itemize their deductions. The standard deduction is adjusted each year for inflation.For 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. If a taxpayer's itemized deductions are less than the standard deduction, they will generally be better off claiming the standard deduction.The cutback adjustment on entertainment expenses is a rule that reduces the amount of entertainment expenses that a taxpayer can deduct. This adjustment applies to expenses that are incurred for the entertainment of clients or customers. The cutback adjustment is 50% for expenses that are incurred after December 31, 2017.By claiming the standard deduction, a taxpayer can avoid the cutback adjustment on entertainment expenses. This is because the standard deduction is not subject to the cutback adjustment.

An Employed Taxpayer Can Avoid the Cutback Adjustment on Entertainment