What significant change regarding work-related deductions did the TCJA implement?

The Tax Cuts and Jobs Act (TCJA) made a significant change by eliminating many work-related deductions for employees through the 2025 tax year. This change particularly affected the ability of employees to deduct unreimbursed business expenses, which had been common before the enactment of the TCJA. As a result, employees could no longer claim these deductions, leading to a notable shift in what tax benefits were available to individuals regarding work-related expenses.

Prior to the TCJA, employees were able to itemize deductions for various out-of-pocket expenses related to their jobs, which could help reduce their taxable income. However, with the new law, these deductions have been removed, impacting a wide range of workers. The intent behind this change was to simplify the tax code and broaden the standard deduction, but it also reduced the tax benefits available to employees conducting business-related activities out of their own pocket.

The other options regarding increased limits, allowing more taxpayers to qualify for deductions, or expanding deductions for state taxes do not accurately reflect the scope and intent of the changes made by the TCJA concerning work-related deductions.