Question

Since TCJA suspended miscellaneous itemized deductions subject to the 2% floor, __________.

The IRC prohibits states from allowing taxpayers a deduction for employee business expenses.

Several states do not conform to the IRC and allow a deduction for employee business expenses.

The IRC prohibits states from using federal Form 2106 as a basis for a state's allowable deduction for employee business expenses.

All states recognize the federal mileage allowance for computing business travel expenses.

Answer 1

Several states do not conform to the IRC and allow a deduction for employee business expenses. - correct option

Tax reform not only eliminated this deduction for unreimbursed employee business expenses, but also eliminated all other miscellaneous itemized deductions subject to the 2% limit but many states refused to enact this law of the TCJA into their own law, so even if employee cannot deduct his expenses for his  federal return, he may still be able to deduct them for his state return.