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)?
$$\begin{array} { | l | r | }
\hline \text { Airfare to New Jersey } & \$ 2,000 \
\hline \text { Meals } & 220 \
\hline \text { Lodging in New Jersey } & 450 \
\hline \text { Rental car } & 180 \
\hline
\end{array}$$

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)?
$$\begin{array} { | l | r | } 
\hline \text { Airfare to New Jersey } & \$ 2,000 \
\hline \text { Meals } & 220 \
\hline \text { Lodging in New Jersey } & 450 \
\hline \text { Rental car } & 180 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Shelley can deduct the following expenses as an employee business expense:
- Airfare: $550
- Hotel: $800
- Meals: $390 ($130/day x 3 days, since she spent the entire time at the conference)
- Conference registration: $1,000 (assumed based on the fact that Shelley attended a two-day business conference)

Total = $2,740

However, if Shelley is reimbursed for these expenses under an accountable plan (meaning the reimbursement is not included in her income), then all the expenses are deductible as an employee business expense. If Shelley is not reimbursed or is reimbursed under a non-accountable plan, then the expenses may be subject to various limitations based on her income and other factors.

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