Limitations on Unreimbursed Employees Unreimbursed employee expenses are classified as miscellaneous itemized deductions Total of miscellaneous itemized deductions are reduced by 2%of aGi before any tax benefit realized If total miscellaneous itemized deductions do not exceed 2% of aGi or if total allowable itemized deductions do not exceed standard deduction Unreimbursed employee expenses may provide no tax benefit; also may affect high-income taxpayers who have 3 scale down of itemized deductionsLimitations On Unreimbursed Employees • Unreimbursed employee expenses are classified as miscellaneous itemized deductions. Total of miscellaneous itemized deductions are reduced by 2% of AGI before any tax benefit realized • If total miscellaneous itemized deductions do not exceed 2% of AGI or if total allowable itemized deductions do not exceed standard deduction, Unreimbursed employee expenses may provide no tax benefit; also may affect high-income taxpayers who have 3% scale down of itemized deductions