What Is Form 2106: Employee Business Expenses?

Form 2106: Employee Business Expenses is a tax form from the Internal Revenue Service(IRS) that allows employees to deduct ordinary and necessary expenses related to their jobs. Ordinary expenses are generally considered common and accepted in a particular line of business, while necessary expenses are those that help conduct bus🐈inessꦿ.

Since 2018, unreimbursed employee 澳洲幸运5官方开奖结果体彩网:business expenses could no longer be claimed as a tax deduction for the majority of taxpayers. The only taxpayers eligible to use Form 2106 are Armed Forces reservists, qualified performing artists, fee-based state or local government officials, and employees with impairment-related work expenses. Before the 澳洲幸运5官方开奖结果体彩网:Tax Cuts and Jobs Act (TCJA) of 2018, any employee could use Form 2106 to deduct unreimbursed job expenses.

The simplified version, Form 2106-EZ, used for unreimbursed business expenses, was discontinued after 2018 after the Tax Cuts and Jobs Act (TCJA) went into effec𓃲t.

Who Can File Form 2106?

Accor🌠ding to the IRS, only the f𒐪ollowing taxpayers can use Form 2106:

• Armed Forces reservists
• Qualified performing artists
• Fee-based state or local government officials
• Employees with impairment-related work expenses

Before 2018, ꦐany employee with unreimbursed work expenses could use Form 2106 to claim those expenses as a miscellaneous itemized deduction.

How to File Form 2106

澳洲幸运5官方开奖结果体彩网: There are two 🤡parts to Form 2106.

Part I tabulates all employee business expenses and reimbursements and calculates whether and which expenses were eligible for a tax deduction. These include vehicle expenses, parking, tolls, transportation charges, and other busines♕s expenses. The filer also includes any reimbursements made by the e✤mployer.

Part II deals more specifically with vehicle expenses. Filers have two choices. They can use the 澳洲幸运5官方开奖结果体彩网:standard mileage rate, which means multiplying the IRS mileage rate for the tax year by the number of business-qualifying miles driven. The mileage rate factors in gasoline and repair expenses, plus wear-and-tear on the average car. For 2025, it is set at 70 cents per mile (up from 67 cents in 2024).

The second method is to calculate actual expenses. These include gasoline, oil, repairs, insurance, registration, and depreciation, which is factored in using a t꧅able in the instructions. You cannot deduct interest on car loans, and car valuations are limited. Whether you used standard mileage or actual expenses, expenses incurred commuting to and from work are not considered eligible busines𒁏s expenses.

The Bottom Line

If you’re an Armed Forces reservist, qualified performing artist, fee-based government official, or have impairment-related work expenses, you may use Form 2106 to deduct ordinary and necessary job expenses. However, since 2018, most 澳洲幸运5官方开奖结果体彩网:taxpayers can no longer claim unreimbursed business expenses 𝔉unless they fall into these specif𒊎ic categories.