# Plain Language Summary: Employee Business Expense Deduction Reinstatement Act of 2025

This bill would let employees deduct certain work-related expenses they pay for out of their own pocket on their tax returns. Specifically, it allows people to deduct 85 percent of unreimbursed expenses for food, lodging, travel, and transportation that they incur while doing their job—but only if their employer didn't reimburse them for these costs. For example, if you're a salesperson who drives to client meetings and pays for your own gas, or a consultant who travels for work and covers your own hotel and meals, you could potentially deduct these expenses.

The catch is that this deduction only applies through 2027, and there's a threshold you have to meet before you can claim it. Currently, employees can only deduct miscellaneous expenses that exceed 2 percent of their adjusted gross income. This bill lowers that threshold to 1 percent, making it easier for people to qualify for the deduction. So if you earn $50,000 a year, instead of needing $1,000 in expenses before you can deduct anything, you'd only need $500. You'd then be able to deduct 85 percent of your qualifying work expenses above that lower threshold.

This change essentially reverses a rule that was put in place by the Tax Cuts and Jobs Act of 2017, which eliminated this type of deduction for most employees. The bill is framed as bringing back a benefit that workers previously had. However, it's important to note that this only helps if you itemize deductions on your tax return rather than taking the standard deduction—and most Americans currently use the standard deduction, so the practical benefit may be limited for many people.