Employee Business Expense Deduction Reinstatement Act of 2025

This bill reinstates a deduction for unreimbursed work-related expenses that were eliminated under the 2017 Tax Cuts and Jobs Act. It allows employees to deduct 85% of unreimbursed expenses for food, lodging, travel, or transportation incurred while performing job duties, instead of the previous 100%. The deduction is now calculated using a 1% floor of adjusted gross income (down from 2%), making it more accessible for lower-income workers. This change directly affects employees who pay for these costs out-of-pocket without reimbursement from their employers. The bill takes effect as if it were part of the 2017 tax law, with a one-year window for claiming refunds.