Allowance of deduction for certain expenses of the trade or business of being an employee

(a) Above-the-Line deduction for union dues and expenses Section 62(a)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: The limitation under the preceding sentence shall not apply to deductions which are attributable to a trade or business consisting of the performance of services by the taxpayer as an employee if such deductions are for union dues and expenses.. (b) Allowance of miscellaneous itemized deduction for other expenses of the trade or business of being an employee Section 67(g) of the Internal Revenue Code of 1986 is amended— (1) by striking 2025.—Notwithstanding subsection (a), and inserting “ 2025.— (1) In general Notwithstanding subsection (a), except as provided in paragraph (2),; and (2) by adding at the end the following: (2) Exception for expenses of the trade or business of being an employee (A) In general Paragraph (1) shall not apply to miscellaneous itemized deductions for any taxable year which are itemized deductions attributable to a trade or business carried on by the taxpayer which consists of the performance of services by the taxpayer as an employee. (B) Application of 2-percent test In applying subsection (a) for any taxable year to which this paragraph applies, only the itemized deductions described in subparagraph (A) shall be taken into account as miscellaneous itemized deductions.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024.