Sec. 1.62-1 Adjusted gross income.

(1) Deductions set forth in section 1.62-1T(c); and

(2) Deductions allowable under part VI, subchapter B, chapter 1 of the Internal Revenue Code, (section 161 and following) that consist of expenses paid or incurred by the taxpayer in connection with the performance of services as an employee under a reimbursement or other expense allowance arrangement (as defined in section 1.62-2) with his or her employer. For the rules pertaining to expenses paid or incurred in taxable years beginning before January 1, 1989, see paragraphs (c)(2) and (f) (see section 1.62-1T(c)(2) and (f) (as amended in 26 CFR part 1 sections 1.61 to 1.169) revised April 1, 1992).