Answer the following statements true (T) or false (F)

Question

1. Deferred compensation refers to methods of compensating employees based upon their current service where the benefits are deferred until future periods.
2. If an individual is self-employed, business-related expenses are deductions for AGI.
3. Unreimbursed employee business expenses are deductions for AGI.
4. The key distinguishing factor for classifying a worker as either an employee or self-employed includes the right to control and direct the worker with respect to both the end result and the means to accomplish that end result.
5. An employee travels out of town as required by his job, and he is not reimbursed. The employee can deduct these work-related travel costs.

Answer 1

1. TRUE
When income is earned for services provided today, but a company plan or arrangement provides for payment in the future, tax law governing deferred compensation will apply.
2. TRUE
It is generally true that self-employment expenses are deductions for AGI, whereas unreimbursed expenses incurred by employees are not deductible.
3. FALSE
Unreimbursed employee business expenses are no longer deductible.
4. TRUE
Right to direct and control the end result and the related means of accomplishing that result are the key considerations in employment classification.
5. FALSE
Employee business expenses, including travel, are not deductible.