Form 2106: Employee Business Expenses


Form 2106, also known as Employee Business Expenses, is a tax form that allows employees to deduct certain expenses related to their job. These expenses can include travel, meals, entertainment, and other costs incurred while performing work duties. Understanding how to properly fill out and utilize Form 2106 can help employees maximize their tax deductions and potentially save money. In this article, we will explore the key aspects of Form 2106, including eligibility requirements, deductible expenses, and important considerations.

Eligibility for Form 2106

Before diving into the details of Form 2106, it is important to determine whether you are eligible to use this form. To be eligible, you must meet the following criteria:

  • You are an employee, not self-employed.
  • You have unreimbursed business expenses that are directly related to your job.
  • You are required to provide these expenses as a condition of your employment.
  • You have not received reimbursement for these expenses from your employer.

If you meet these eligibility requirements, you can proceed with filling out Form 2106 to claim your deductions.

Deductible Expenses

Form 2106 allows employees to deduct a wide range of expenses that are necessary for their job. Some common deductible expenses include:

  • Travel expenses: This includes transportation costs, such as airfare, train tickets, or mileage if using your own vehicle for business purposes.
  • Meals and entertainment: If you incur expenses for meals or entertainment while conducting business, you may be able to deduct a portion of these costs.
  • Home office expenses: If you have a dedicated space in your home that is used exclusively for work, you may be able to deduct a portion of your rent or mortgage, utilities, and other related expenses.
  • Professional development: Expenses related to continuing education, conferences, seminars, and professional memberships can often be deducted.
  • Work-related supplies: This includes any supplies or equipment necessary for your job, such as tools, uniforms, or office supplies.

It is important to note that these expenses must be directly related to your job and necessary for its performance. Additionally, you can only deduct expenses that have not been reimbursed by your employer.

Filling Out Form 2106

Now that you understand the eligibility requirements and deductible expenses, let's walk through the process of filling out Form 2106:

  1. Start by entering your personal information, including your name, social security number, and employer's name and address.
  2. Next, provide details about your job, such as your job title and the nature of your work.
  3. Proceed to Part I of the form, where you will report your vehicle expenses if applicable. This includes the number of business miles driven and the total number of miles driven during the tax year.
  4. In Part II, you will report your expenses for meals, entertainment, and travel. Be sure to keep detailed records of these expenses, including receipts and documentation.
  5. If you have any other employee business expenses that do not fall under the previous categories, you can report them in Part III.
  6. Finally, calculate the total expenses in Part IV and transfer the amount to your Schedule A, which is used to itemize deductions on your tax return.

It is crucial to keep accurate records and documentation of all your expenses to support your deductions in case of an audit. This includes receipts, invoices, and any other relevant documentation.

Important Considerations

While Form 2106 can be a valuable tool for maximizing your tax deductions, there are a few important considerations to keep in mind:

  • Threshold for deductions: Employee business expenses are subject to a 2% adjusted gross income (AGI) threshold. This means that you can only deduct expenses that exceed 2% of your AGI.
  • Reimbursements: If you receive any reimbursements from your employer for business expenses, you must subtract these amounts from your total deductions.
  • Documentation: As mentioned earlier, maintaining accurate records and documentation is crucial. Without proper documentation, your deductions may be disallowed in case of an audit.
  • State tax considerations: While Form 2106 is used for federal tax purposes, it is important to check your state's tax laws to determine if they allow deductions for employee business expenses.


Form 2106 provides employees with an opportunity to deduct certain expenses related to their job, potentially reducing their taxable income and saving money on taxes. By understanding the eligibility requirements, deductible expenses, and important considerations, employees can make the most of this tax form. Remember to keep accurate records and documentation, and consult with a tax professional if you have any specific questions or concerns. By utilizing Form 2106 effectively, you can optimize your tax deductions and improve your overall financial situation.

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