In the current year, Mary incurs $3,600 of unreimbursed employment-related travel and entertainment expenses. These expenses include the following:
- Airfare $1,500
- Taxi fare 100
- Meals eaten alone while
- away from home on business 300
- Laundry 50
- Lodging 650
- Business meals with customers at
- which business is discussed 500
- Entertainment of customers 500
- Total $3,600
Mary also pays $1,000 of investment counseling fees and $500 of tax return preparation fees in the current year. Mary's AGI is $70,000.
a. What is the total amount of Mary's deductible expenses?
b. Are the deductible expenses classified as for AGI or from AGI?