Title: Tax Relief for Guard and Reserve Training Act
Policy area: Taxation

Summary:
Tax Relief for Guard and Reserve Training Act
This bill amends the Internal Revenue Code, with respect to the tax deductions for expenses in connection with the performance of services as a member of a reserve component of the Armed Forces, to: (1) reduce from 100 miles to 50 miles (without regard to whether such period includes an overnight stay) the distance from home requirement for the above-the-line deduction; and (2) exempt from the 2% floor on miscellaneous itemized deductions the deductions allowed that consist of expenses paid or incurred in connection with the performance of such services for any period (without regard to whether such period includes an overnight stay) during which the individual is more than 50 miles away from home in connection with the services.
(Above-the-line deductions are subtracted from gross income to arrive at adjusted gross income. Under current law, miscellaneous itemized deductions are only allowed if the aggregate of the deductions exceeds 2% of the taxpayer's adjusted gross income.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 697 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 697

    To amend the Internal Revenue Code of 1986 to lower the mileage 
threshold for deduction in determining adjusted gross income of certain 
expenses of members of reserve components of the Armed Forces, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2017

  Mr. Daines introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to lower the mileage 
threshold for deduction in determining adjusted gross income of certain 
expenses of members of reserve components of the Armed Forces, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief for Guard and Reserve 
Training Act''.

SEC. 2. REDUCTION OF MILEAGE THRESHOLD FOR DEDUCTION IN DETERMINING 
              ADJUSTED GROSS INCOME.

    (a) In General.--Subparagraph (E) of section 62(a)(2) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``100 miles'' and inserting ``50 miles'', 
        and
            (2) by striking ``for any period'' and inserting ``for any 
        period (without regard to whether such period includes an 
        overnight stay)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 3. EXEMPTION FROM 2 PERCENT FLOOR ON MISCELLANEOUS ITEMIZED 
              DEDUCTIONS.

    (a) In General.--Subsection (b) of section 67 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (11),
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(13) the deductions allowed by section 162 which consist 
        of expenses paid or incurred by the taxpayer in connection with 
        the performance of services by such taxpayer as a member of a 
        reserve component of the Armed Forces of the United States for 
        any period (without regard to whether such period includes an 
        overnight stay) during which such individual is more than 50 
        miles away from home in connection with such services.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
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