Form 2106 - Deductible Business Expenses
Form 2106 is used to calculate the amount of unreimbursed employee business expenses the taxpayer can deduct as an adjustment on Schedule 1. This form can only be used by the following taxpayers:
- Armed Forces reservists - A member of the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard, the Air National Guard, or the Reserve Corps of the Public Health Service who had to travel more than 100 miles from home for their service as a member of the reserves.
- Qualified performing artists - The individual must meet all of the following criteria:
- Worked in the performing arts as an employee for at least two employers during the year;
- Received from at least two of those employers wages of $200 or more each;
- Allowable business expenses related to the performing arts are more than 10% of the gross income from performing arts;
- AGI is $16,000 or less before deducting expenses as a performing artist;
- If filing MFJ, the individual claiming the deduction must meet a, b, and c above on their own;
- If filing MFS, the taxpayer must have lived apart from their spouse the entire year.
- Fee-basis state or local government officials - Employed by a state or political subdivision of a state and received compensation, in whole or part, on a fee basis.
- Disabled employees with impairment-related work expenses - The allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. See Publication 463 for more specifics.
A taxpayer who doesn't fit under one of the four above categories cannot use Form 2106.
Note: Our Software includes the ability to enter unreimbursed employee business expenses and other miscellaneous deductions under the Schedule A menu, but this is only for the purpose of carrying these expenses to the state return for states that allow them as a deduction. Subsequent to the passage of the Tax Cuts and Jobs Act of 2017, the tax year 2017 was the last year these expenses were allowable as a federal itemized deduction.
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