Mike incurs the following employment-related expenses in the current year:
Actual automobile expenses …………………………………… $ 2,500
Moving expenses (deductible under Sec. 217) …………………4,000
Entertainment expenses …………………………………………1,500
Travel expenses (including $500 of business meals)…………..2,500
Professional dues and subscriptions …………………………… 500
Total ……………………………………………………………. $11,000
Mike’s AGI is $120,000 before any of the above expenses are deducted. None of the expenses listed above are reimbursed by Mike’s employer. He has no other miscellaneous itemized deductions and does not use the standard deduction.
a. What is the amount of Mike’s deduction for employment-related expenses?
b. How are these items reported in Mike’s tax return?