IRS Form 2106 Help
If you are an employee and have incurred business expenses that you wish to deduct when filing your taxes, you must complete Form 2106. Form 2106, "Employee Business Expenses," is used to recoup some of the job-related business expenses that were not fully reimbursed through the year by your employer. Form 2106 must be completed and attached to your Form 1040 or 1040NR. Form 2106 is not a stand-alone form and therefore should not be mailed independent of the 1040 or 1040NR.
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Obtaining Form 2106
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Download Form 2106 from the Internal Revenue Service website, and download the instructions as well. The IRS has an eight-page PDF of filing instructions for Form 2106. If you do not wish to download the PDF, you can access the filing instructions on the IRS website.
Completing Form 2106
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Enter your name, occupation and Social Security number on the top line of the form. Since the form will be attached to the 1040 tax return form, there is no need for filling in demographic information such as address and phone number. List your business expenses in the first section under Part I of the form. Business expenses include vehicle, parking, travel, meals or any other business expense you have incurred throughout the tax year. Report the reimbursements you have received or the business expense you have incurred. If your employer has reimbursed part of your business expenses, list them in the second section under Part I of the form.
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Form 2106 and Form 1040
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Calculate the amount of business expenses to deduct when filing your 1040 form. To do this, subtract the employer reimbursement from the total amount of business expenses incurred. The resulting figure is listed under the third section of Part I on Form 2106. Refer to the instructions for deduction limitations.
Documenting Vehicle Expenses
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Complete Part II of Form 2106 only if you are claiming vehicle-related business expenses. If you are only deducting hotel, meals and travel expenses that do not include use of your vehicle, you do not have to complete Part II. However, if you are claiming business-related vehicle expenses, you must list the specifics under Part II of Form 2106. The specifics include but are not limited to mileage, gasoline, repairs, rental, vehicle depreciation and more. Refer to the downloaded instructions for types of vehicle expenses to report under Part II.
When Not to Use Form 2106
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Form 2106 should not be used if you are a business owner or self-employed. This form is only used for employees who are claiming business related expenses.
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