What is the maximum allowed deduction for unreimbursed employee expenses on Schedule A?

The correct answer is that no deductions are allowed for unreimbursed employee expenses on Schedule A, primarily due to changes enacted by the Tax Cuts and Jobs Act (TCJA) in late 2017. This tax reform effectively eliminated the ability of employees to deduct these expenses for tax years 2018 through 2025.

Prior to this tax reform, employees could deduct unreimbursed expenses if they exceeded 2% of their adjusted gross income, which provided some tax relief for those bearing costs related to employment. However, the legislation's intent was to simplify the tax code and reduce tax rates, leading to the total disallowance of this deduction for individuals who were not self-employed.

The other options may offer percentages or suggest certain types of expenses that might have been deductible prior to the TCJA, but under the current tax law, all unreimbursed employee expenses are indeed eliminated from deductions available on Schedule A.