What difference does it make if a taxpayer’s expenses are classified as unreimbursed employee expenses rather than expenses from self-employment?

1. Unreimbursed employee expenses are subject to a hurdle of 2% of the taxpayer’s AGI. They also require the taxpayer to itemize before the deduction can be taken.

2. Expenses from self-employment are deducted above the line and have no AGI floor.

3. Unreimbursed employee expenses are deducted above the line and have no AGI floor.