Henry Muhlenburg, Docket No. 14316-22S, filed 6/16/23, stars in a bench opinion by STJ Eunkyong (“N’Yawk”) Choi. He learns therefrom that, while said enactment gives him no tax cuts, it certainly does a job on his Sched A.

Hank claimed travel expenses from NC to NY for post-2018 year at issue, because he lost his NC job and couldn’t find another nearer than Excelsiorland. STJ N’Yawk says Hank might have had at least some of these allowed, except TCJA amended Section 67 to suspend these until 2026 (and don’t hold your breath until they come back).

You can still take them if you’re a performing artist, an official who is an employee of a State, an elementary or secondary school teacher, or member of the reserve component of the Armed Forces. See Section 62(a)(2). Hank, of course, is none of the above.

IRS generously folds the Section 6662 chops, and helps Hank out by finding an extra $3K of charitables at Exam that never made it onto Hank’s return.

STJ N’Yawk: “The Court is very sympathetic to petitioner. The facts and circumstances show he may have been entitled to claim the employee business expense deduction for taxable year… but for the suspension of miscellaneous itemized deductions for taxable years December 31, 2017, through January 1, 2026. However, because miscellaneous itemized deductions were suspended for taxable year … and because petitioner did not fall within any of the classes of employees entitled to deduct employee business expenses for taxable year…, he was not entitled to claim the employee business expense deduction for taxable year….” Transcript, at pp. 6-7.

Technically, that’s “before January 1, 2026,” not “through January 1, 2026,” Judge.

Quibbles aside, I had expected a lot more of these from those self-preparers who use outdated software or none at all, out-of-date forms, and don’t bother to read the current Pub 17. We’ll be getting them shortly.