{"id":12954,"date":"2025-04-15T14:41:24","date_gmt":"2025-04-15T21:41:24","guid":{"rendered":"https:\/\/www.irs.com\/?p=12954"},"modified":"2025-04-16T00:02:25","modified_gmt":"2025-04-16T07:02:25","slug":"form-2106-employee-business-expenses","status":"publish","type":"post","link":"https:\/\/www.irs.com\/es\/form-2106-employee-business-expenses\/","title":{"rendered":"Form 2106: A Guide for Employee Business Expenses"},"content":{"rendered":"<p><em>When it comes to tax time, there are plenty of forms out there that seem to only apply to certain people in very specific situations. Form 2106, officially titled Employee Business Expenses, is one of those forms. It\u2019s not something everyone files, and in fact, since the tax law changes in 2018, even fewer people need to use it. But if you&#8217;re one of the folks it still applies to, it&#8217;s a good idea to really understand what it\u2019s for, when to use it, and how it can impact your taxes.<\/em><\/p>\n<div style=\"width: 640px;\" class=\"wp-video\"><video class=\"wp-video-shortcode\" id=\"video-12954-1\" width=\"640\" height=\"360\" preload=\"metadata\" controls=\"controls\"><source type=\"video\/mp4\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/Understanding_Form_2106_Deductions.mp4?_=1\" \/><a href=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/Understanding_Form_2106_Deductions.mp4\">https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/Understanding_Form_2106_Deductions.mp4<\/a><\/video><\/div>\n<p>This guide will walk you through everything you need to know about Form 2106 for the 2025 tax year. Whether you\u2019re a qualifying employee, a military reservist, or you&#8217;re just trying to figure out why this form matters, we\u2019ve got you covered.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-12958 aligncenter\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-1024x683.jpg\" alt=\"Form 2106\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-1024x683.jpg 1024w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-300x200.jpg 300w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-768x512.jpg 768w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-1536x1024.jpg 1536w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-2048x1365.jpg 2048w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-18x12.jpg 18w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-cottonbro-5990160-640x426.jpg 640w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2>What Is Form 2106?<\/h2>\n<p>Form 2106 is used to report unreimbursed employee business expenses. In plain terms, it\u2019s where you tell the IRS about work-related costs you had to <a href=\"https:\/\/www.irs.com\/es\/1099-deductions\/\">pay out of your own pocket<\/a> that your employer didn\u2019t cover. Things like mileage, travel expenses, tools, uniforms, or continuing education may fall into this category\u2014though not everything qualifies, and not everyone is eligible to deduct them.<\/p>\n<p>The catch? Most employees can no longer deduct these types of expenses. The <a href=\"https:\/\/taxfoundation.org\/taxedu\/glossary\/tax-cuts-and-jobs-act\/\" target=\"_blank\" rel=\"noopener nofollow\">Tax Cuts and Jobs Act (TCJA)<\/a> suspended miscellaneous itemized deductions subject to the 2% adjusted gross income (AGI) limit, which included unreimbursed employee expenses, from 2018 through at least 2025. So, for the majority of W-2 workers, Form 2106 is currently off the table.<\/p>\n<h3>Who Can Still Use Form 2106?<\/h3>\n<p>Even with those deductions suspended, there are still a few categories of workers who may be able to use Form 2106 in 2025. Here are the main ones:<\/p>\n<ul>\n<li aria-level=\"1\"><b>Active members of the Armed Forces reserves.<\/b> If you&#8217;re a reservist and had unreimbursed travel expenses while traveling more than 100 miles away from home for reserve duty, you might be able to use this form.<\/li>\n<li aria-level=\"1\"><b>Qualified performing artists.<\/b> If you meet certain income and expense thresholds and wbusinesork in the performing arts, you might qualify.<\/li>\n<li aria-level=\"1\"><b>Fee-basis state or local government officials.<\/b> These are folks who are paid on a fee-per-service basis for performing official duties.<\/li>\n<li aria-level=\"1\"><b>Employees with impairment-related work expenses.<\/b> If you&#8217;re <a href=\"https:\/\/www.irs.com\/es\/las-rentas-por-incapacidad-pueden-afectar-de-forma-positiva-a-tu-declaracion-de-la-renta-en-funcion-de-su-origen\/\">an employee with a disability<\/a> and you have work-related expenses tied to that impairment, those costs can still be deducted.<\/li>\n<\/ul>\n<p>So while most people don\u2019t need to think about Form 2106 anymore, it\u2019s still very relevant to a small but specific group of taxpayers.<\/p>\n<h2>What Types of Expenses Can Be Reported on Form 2106?<\/h2>\n<p>If you\u2019re among the few categories of employees who still qualify to use Form 2106\u2014like military reservists traveling more than 100 miles away from home for duty, qualified performing artists, fee-basis government officials, or employees with impairment-related work expenses\u2014then you\u2019re allowed to report <a href=\"https:\/\/www.irs.com\/es\/form-8995\/\">certain unreimbursed business expenses<\/a>. But it\u2019s important to understand what kinds of expenses actually make the cut.<\/p>\n<p>Let\u2019s walk through the categories in detail:<\/p>\n<p><b> 1. Vehicle Expenses Related to Work<\/b><\/p>\n<p>You can report vehicle costs if you use your car for business purposes. This does <i>No<\/i> include your daily commute to and from your main job site\u2014that\u2019s specifically excluded by the IRS. But if you\u2019re traveling to a temporary job location, a meeting off-site, or a secondary work location, those miles count.<\/p>\n<p>There are two ways to calculate these costs:<\/p>\n<ul>\n<li aria-level=\"1\">The standard mileage rate, which is set annually by the IRS (for 2025, you\u2019ll want to check the latest update when you file)<\/li>\n<li aria-level=\"1\">The actual expenses method, which involves tracking gas, oil, maintenance, insurance, and even depreciation<\/li>\n<\/ul>\n<p>You\u2019ll need to keep detailed mileage logs, including dates, destinations, and business purposes, to back up your claim.<\/p>\n<p><b> 2. Travel Expenses Away From Home<\/b><\/p>\n<p>If your job requires you to travel away from your tax home (which is generally your main place of work), and your employer doesn\u2019t reimburse you for it, then <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc511\" target=\"_blank\" rel=\"noopener\">these expenses might be deductible<\/a>.<\/p>\n<p>This includes airfare, train tickets, taxis, baggage fees, hotel stays, tips related to travel, and meals while you\u2019re out of town. Meals are only partially deductible (usually 50%), and entertainment expenses are no longer deductible at all\u2014even if they\u2019re work-related.<\/p>\n<p>The trip must be primarily for business, and the expenses must be considered \u201cordinary and necessary\u201d for your profession.<\/p>\n<p><b> 3. Tools, Equipment, and Supplies<\/b><\/p>\n<p>Certain job-specific tools and equipment may be deductible if you paid for them yourself and didn\u2019t get reimbursed. Think musical instruments for performing artists, trade-specific tools for technicians or inspectors, or specialized equipment you need to perform your role.<\/p>\n<p>Consumable supplies, like toner or safety gear, can also fall into this category. These items should be essential to your duties, and they shouldn\u2019t be personal in nature.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-12956 aligncenter\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-1024x682.jpg\" alt=\"Form 2106\" width=\"640\" height=\"426\" srcset=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-1024x682.jpg 1024w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-300x200.jpg 300w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-768x512.jpg 768w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-1536x1024.jpg 1536w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-18x12.jpg 18w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553-640x426.jpg 640w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-pixabay-162553.jpg 2000w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><b> 4. Uniforms and Protective Clothing<\/b><\/p>\n<p>Work clothes can be tricky because the IRS doesn\u2019t allow deductions for clothing that could be worn outside of work\u2014even if you don\u2019t <i>actually<\/i> wear it casually. However, you can deduct the cost of uniforms or protective gear that are required for your job and not suitable for everyday wear.<\/p>\n<p>For example, a law enforcement officer\u2019s uniform, protective gloves, or a stage costume for a performing artist would generally qualify. Laundry and maintenance costs for these items may also be deductible.<\/p>\n<p><b> 5. Professional Fees and Licenses<\/b><\/p>\n<p>If you have to pay out of pocket for licenses, union dues, regulatory fees, or membership fees for professional organizations required by your employer or industry, you may be able to include those costs on Form 2106.<\/p>\n<p>This is especially relevant for certain artists, government employees, or anyone required to keep professional certifications active as part of their work.<\/p>\n<p><b> 6. Impairment-Related Work Expenses<\/b><\/p>\n<p>If you\u2019re an employee with a physical or mental disability and you need certain accommodations or assistive devices in order to perform your job, the costs associated with those can be reported on Form 2106. This includes things like adaptive equipment, readers or interpreters, or modifications to your work environment that help you perform your job duties.<\/p>\n<p>These expenses are still deductible even if you&#8217;re not one of the other qualifying employee types, as long as they directly relate to doing your job and aren&#8217;t reimbursed.<\/p>\n<h4>Reimbursement Rules Matter<\/h4>\n<p>One important detail about Form 2106 is the reimbursement policy of your employer. If you were reimbursed for these expenses <a href=\"https:\/\/www.investopedia.com\/terms\/a\/accountableplan.asp\" target=\"_blank\" rel=\"noopener nofollow\">under what&#8217;s called an &#8220;accountable plan,&#8221;<\/a> you can&#8217;t deduct them. An accountable plan just means your employer requires receipts, and any excess reimbursements must be returned.<\/p>\n<p>But if your employer didn\u2019t reimburse you or you were under a non-accountable plan (one that doesn\u2019t require receipts or documentation), then you might have deductible expenses\u2014if you qualify under the current tax law.<\/p>\n<h3>How Form 2106 Connects to the Rest of Your Return<\/h3>\n<p>Form 2106 doesn\u2019t stand alone. The totals from this form flow into Schedule 1 of your Form 1040. If you&#8217;re eligible to deduct those expenses, they&#8217;ll lower your adjusted gross income, which can also potentially open the door to other deductions or credits.<\/p>\n<p>The math on Form 2106 isn\u2019t always straightforward. You\u2019ll need to calculate depreciation on any vehicle used, account for partial reimbursements, and carefully separate commuting from business miles if you\u2019re claiming travel. If this sounds like a headache, it\u2019s worth using tax software or speaking to a professional who can help you sort it all out.<\/p>\n<h4>Changes to Watch Out for in 2025<\/h4>\n<p>As of now, the TCJA rules are still in place, meaning most employees won\u2019t be eligible to use Form 2106. However, the law is set to expire after 2025 unless Congress acts to extend or revise it. So it\u2019s a good idea to stay tuned for updates, especially if you\u2019re someone who used to rely on these deductions before the rules changed.<\/p>\n<h3>Filing Tips and Common Mistakes<\/h3>\n<p>If you\u2019re using Form 2106 this year, double-check that you meet the eligibility criteria first. A lot of taxpayers make the mistake of trying to claim expenses they\u2019re no longer allowed to deduct.<\/p>\n<p>Another common mistake is miscalculating vehicle expenses, especially when using the standard mileage rate. Keep a good record of your mileage throughout the year, including dates, destinations, and business purposes.<\/p>\n<p>And finally, remember that you can\u2019t deduct expenses that were reimbursed by your employer unless they were under a nonaccountable plan. This is a key difference that often trips people up.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-12955 aligncenter\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-1024x683.jpg\" alt=\"Form 2106\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-1024x683.jpg 1024w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-300x200.jpg 300w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-768x512.jpg 768w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-1536x1024.jpg 1536w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-2048x1365.jpg 2048w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-18x12.jpg 18w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/04\/pexels-mingao-welfarecar-555708794-18442877-640x426.jpg 640w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2>The Final Word on Form 2106\u2026<\/h2>\n<p>Form 2106 isn\u2019t nearly as common as it used to be, but it\u2019s still a vital part of the tax toolkit for certain workers. If you\u2019re a reservist, a performing artist, a fee-based government official, or you have impairment-related work expenses, you may still have a reason to file it. And if you\u2019re not in one of those groups, it\u2019s still good to know what the form is and how the rules work\u2014especially since things could change again after 2025.<\/p>\n<p>As always, when in doubt, don\u2019t guess. Talk to a tax pro, and make sure you\u2019re getting the deductions you\u2019re entitled to\u2014without running afoul of the IRS in the process.<\/p>\n<h2>Form 2106: FAQ<\/h2>\n<p><b> 1. Who can still use Form 2106 in 2025?<\/b><\/p>\n<p>Form 2106 is no longer something that most employees can use to deduct business expenses. However, if you fall into one of a few specific categories, you may still be eligible. These include members of the military reserves traveling over 100 miles for duty, qualified performing artists who meet certain income and expense limits, fee-basis state or local government officials, and employees with work-related impairment expenses. These are narrow exceptions, so unless you\u2019re in one of these groups, Form 2106 probably doesn\u2019t apply to you anymore.<\/p>\n<p><b> 2. What kinds of expenses can be claimed on Form 2106?<\/b><\/p>\n<p>The types of expenses that qualify must be directly related to your job and not reimbursed by your employer. This might include vehicle mileage for business travel (but not commuting), airfare or lodging for work-related trips, tools or equipment required for your role, uniforms that aren\u2019t suitable for everyday wear, and professional dues or licensing fees. Everything must be necessary and ordinary for the work you do. The IRS is pretty strict on these definitions, so it\u2019s important to double-check what qualifies.<\/p>\n<p><b> 3. I used to deduct business expenses before 2018. Why can\u2019t I now?<\/b><\/p>\n<p>This change came from the Tax Cuts and Jobs Act, which suspended the deduction for miscellaneous itemized expenses that were subject to the 2% AGI limit. Unreimbursed employee expenses were part of that category. So from 2018 through at least the end of 2025, most W-2 employees can\u2019t claim those deductions, no matter how much they spent on their own for work. Unless you\u2019re one of the exceptions listed earlier, you won\u2019t be able to use Form 2106 during this period.<\/p>\n<p><b> 4. What\u2019s the difference between an accountable plan and a non-accountable plan?<\/b><\/p>\n<p>This is one of those IRS terms that trips people up. If your employer reimburses you under an accountable plan, it means they require receipts and you return any extra reimbursement you didn\u2019t spend. In this case, you\u2019re not allowed to claim those expenses on Form 2106 because you already got paid back for them. A non-accountable plan, on the other hand, doesn\u2019t require documentation or returning excess money. If your employer uses that kind of plan, you may be able to deduct your expenses, but only if you\u2019re in a group still allowed to file Form 2106.<\/p>\n<p><b> 5. Do I need to file anything else with Form 2106?<\/b><\/p>\n<p>Yes, Form 2106 is just one piece of the bigger picture. The numbers from Form 2106 generally carry over to Schedule 1 of your Form 1040, which is where adjustments to income are reported. This helps lower your adjusted gross income, which can affect your eligibility for other deductions or tax credits. If you\u2019re claiming vehicle expenses, you might also need to include mileage records or information about the vehicle\u2019s business use. It\u2019s a good idea to keep solid documentation even if you\u2019re not submitting it directly.<\/p>\n<p><b> 6. Will Form 2106 become more relevant again after 2025?<\/b><\/p>\n<p>It\u2019s very possible. The suspension of miscellaneous itemized deductions under the TCJA is set to expire at the end of 2025. If Congress doesn\u2019t extend those changes, then many of the old deduction rules could return, including broader use of Form 2106. That would mean more employees could once again deduct unreimbursed business expenses. But as with all tax laws, things can shift depending on legislation, so it\u2019s worth staying informed each year about how the rules change.<\/p>","protected":false},"excerpt":{"rendered":"<p>When it comes to tax time, there are plenty of forms out there that seem to only apply to certain people in very specific situations. Form 2106, officially titled Employee Business Expenses, is one of those forms. It\u2019s not something everyone files, and in fact, since the tax law changes in 2018, even fewer people [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":12957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37,154,31,157,11,171],"tags":[],"class_list":["post-12954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-paying-taxes","category-small-business","category-tax-deductions","category-tax-filing","category-tax-forms","category-tax-tips"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/posts\/12954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/comments?post=12954"}],"version-history":[{"count":3,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/posts\/12954\/revisions"}],"predecessor-version":[{"id":12962,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/posts\/12954\/revisions\/12962"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/media\/12957"}],"wp:attachment":[{"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/media?parent=12954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/categories?post=12954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irs.com\/es\/wp-json\/wp\/v2\/tags?post=12954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}