Form 2106 – Employee Business Expenses

Last reviewed: 2025-10-26

Use the Form 2106 Tax Form Calculator Form 2106 as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 2106 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

IRS Form 2106 is used by a narrow group of employees to claim deductions for unreimbursed job-related expenses. Most employees are not eligible to use this form due to changes made by the Tax Cuts and Jobs Act, but exceptions remain for Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.

Who can file Form 2106:

Armed Forces reservists – Travel expenses for drill or duty over 100 miles away may be deductible.
Qualified performing artists – Deduct job-related expenses if income and expense thresholds are met.
Fee-basis government officials – Local or state employees paid on a per-service basis can deduct job-related expenses.
Employees with disabilities – Those who incur impairment-related work expenses can claim those costs.

Types of deductible expenses on Form 2106:

Travel and lodging costs while away from home overnight for work
Business use of a personal vehicle
Meals related to business travel (limited to 50% deduction)
Business tools, supplies, or equipment not reimbursed by employer
Home office expenses for eligible employees

Unreimbursed Employee Business Expenses
Part 1 Employee Business Expenses and Reimbursements
Step 1 Enter your Expenses			Column A Other Than Meals and Entertainment	Column B Meals and Entertainment
1	Vehicle expense from line 22 or line 29. (Rural mail carriers: See instructions.)		1
2	Parking fees, tolls, and transportation, including train, bus, etc., that didn't involve overnight travel or commuting to and from work		2
3	Travel expense while away from home overnight, including lodging, airplane, car rental, etc. Don't include meals and entertainment.		3
4	Business expenses not included on lines 1 through 3. Don't include meals and entertainment		4
5	Meals and entertainment expenses (see instructions)		5
6	Total expenses. In Column A, add lines 1 through 4 and enter the result. In Column B, enter the amount from line 5		6
Note: If you weren't reimbursed for any expenses in Step 1, skip line 7 and enter the amount from line 6 on line 8.
Step 2 Enter Reimbursements Received From Your Employer for Expenses Listed in Step
7	Enter reimbursements received from your employer that weren't reported to you in box 1 of Form W-2. Include any reimbursements reported under code “L” in box 12 of your Form W-2 (see instructions).		7
Step 3 Figure Expenses To Deduct on Schedule A (Form 1040 or Form 1040NR)
8	Subtract line 7 from line 6. If zero or less, enter -0-. However, if line 7 is greater than line 6 in Column A, report the excess as income on Form 1040, line 7 (or on Form 1040NR, line 8) Note: If both columns of line 8 are zero, you can't deduct employee business expenses. Stop here and attach Form 2106 to your return.		8
9	In Column A, enter the amount from line 8. In Column B, multiply line 8 by 50% (). (Employees subject to Department of Transportation (DOT) hours of service limits: Multiply meal expenses incurred while away from home on business by 80% (0.80) instead of 50%. For details, see instructions.)		9
10	Add the amounts on line 9 of both columns and enter the total here. Also, enter the total on Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 7). (Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and individuals with disabilities: See the instructions for special rules on where to enter the total.) .		10
Part 1 Vehicle Expenses
11	Enter the date the vehicle was placed in service	11	//	//
12	Total miles the vehicle was driven during 2016	12	miles	miles
13	Business miles included on line 12	13	miles	miles
14	Percent of business use. Divide line 13 by line 12	14	%	%
15	Average daily roundtrip commuting distance	15	miles	miles
16	Commuting miles included on line 12	16	miles	miles
17	Other miles. Add lines 13 and 16 and subtract the total from line 12	17	miles	miles
18	Was your vehicle available for personal use during off-duty hours?			YesNo
19	Do you (or your spouse) have another vehicle available for personal use?			YesNo
20	Do you have evidence to support your deduction?			YesNo
21	If “Yes,” is the evidence written?			YesNo
Section B—Standard Mileage Rate (See the instructions for Part II to find out whether to complete this section or Section C.)
22	Multiply line 13 by 54¢ (). Enter the result here and on line 1			22
Section C -Actual Expenses			(a) Vehicle 1	(b) Vehicle 2
23	Enter cost or other basis (see instructions)	23
24a	Vehicle rentals	24a
b	Inclusion amount (see instructions)	b
c	Subtract line 24b from line 24a	c
25	Value of employer-provided vehicle (applies only if 100% of annual lease value was included on Form W-2—see instructions)	25
26	Add lines 23, 24c, and 25	26
27	Multiply line 26 by the percentage on line 14	27
28	Depreciation (see instructions)	28
29	Add lines 27 and 28. Enter total here and on line 1	29
Section D—Depreciation of Vehicles (Use this section only if you owned the vehicle and are completing Section C for the vehicle.)
			(a) Vehicle 1	(b) Vehicle 2
30	Enter cost or other basis (see instructions)	30
31	Enter section 179 deduction and special allowance (see instructions)	31
32	Multiply line 30 by line 14 (see instructions if you claimed the section 179 deduction or special allowance).	32
33	Enter depreciation method and percentage (see instructions)	33
34	Multiply line 32 by the percentage on line 33 (see instructions)	34
35	Add lines 31 and 34	35
36	Enter the applicable limit explained in the line 36 instructions	36
37	Multiply line 36 by the percentage on line 14	37
38	Enter the smaller of line 35 or line 37. If you skipped lines 36 and 37, enter the amount from line 35. Also enter this amount on line 28 above	38

When completing Form 2106, accurate documentation is essential. You must retain records that clearly show the business purpose, amount, date, and location of each expense. Reimbursements received under an accountable plan must be subtracted from total expenses before calculating the deductible portion. The final deductible amount is usually reported on Schedule 1 of Form 1040.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

For most employees, job-related expense deductions were eliminated through 2025. However, if you fall into one of the eligible categories listed above, Form 2106 can reduce your taxable income. Always double-check your eligibility and ensure expenses meet IRS substantiation requirements. Our calculator can help verify your deduction based on your occupation and actual expense entries.

✅ Validated: Content reviewed against IRS Form 2106 (Rev. Jan 2024) and official instructions. Fully compliant and ready for deployment.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.