Form 2106-EZ: Unreimbursed Employee Business Expenses was a tax form used by employees to deduct ordinary and necessary job-related expenses. However, the Tax Cuts and Jobs Act (TCJA) eliminated many of these deductions, making Form 2106-EZ obsolete after the 2017 tax year.
Important!
While Form 2106-EZ is discontinued, the more comprehensive Form 2106 is still available for certain taxpayers, such as Armed Forces reservists, performing artists, fee-based state and local government officials, and employees with impairment-related work expenses.
Key Takeaways
- Form 2106-EZ facilitated deductions for job-related expenses, including meals, lodging, travel, and vehicle costs.
- Discontinued post-2017 due to the TCJA eliminating most unreimbursed employee expense deductions.
- Full Form 2106 remains usable for specific professions and situations.
Who Could File Form 2106-EZ: Unreimbursed Employee Business Expenses?
Ordinary expenses refer to common and accepted costs within a business; necessary expenses are those crucial for business operations. Form 2106-EZ offered a simplified process for claiming these deductions, provided the expenses were not reimbursed by the employer.
Qualifications extended to employees able to claim a standard mileage rate for vehicle expenses. The form was used up until the TCJA halted almost all unreimbursed employee expense deductions after 2017.
Filing Form 2106-EZ
The form was structured into two main sections. Part I covered general employee business expenses, while Part II specifically tackled vehicle expenses.
Part I: Listed unreimbursed business expenses such as airfare, lodging, parking, tolls, car rental, and personal vehicle costs from Part II. Allowed deductions included incidental expenses like valet tips and 50% of meals and entertainment costs.
Additionally, expenses for overnight stays could utilize the General Services Administration (GSA) per diem rates or State Department rates for international travel. Rates for lodging could vary based on local conditions and time of year. For example, Aspen, Colorado, had a GSA per diem lodging rate of $361 in January but only $185 in September 2020, with a meal rate of $76.
When Vehicle Expenses Are Still Deductible
Part II: Managed personal vehicle expenses using the standard mileage rate, which covered costs for gasoline, repairs, and general wear and tear. Self-employed taxpayers can still deduct personal vehicle use for work, following IRS rates which were 57.5 cents per mile for 2020 and 56 cents per mile for 2021.
Vehicle expenses for charitable, medical, and relocation purposes remain deductible under specific circumstances, with relocation now limited to active military personnel.
Download Form 2106-EZ: Unreimbursed Employee Business Expenses
The full Form 2106, along with other relevant forms, can be downloaded from the IRS website.
Note: Form 2106-EZ is accessible for reference but discontinued post-2017.
Related Terms: Tax Deduction, IRS, Business Expense, Form 2106, Tax Cuts and Jobs Act.
References
- Internal Revenue Service. “Tax Cuts and Jobs Act: A Comparison for Businesses”.
- Internal Revenue Service. “About Form 2106, Employee Business Expenses”.
- Internal Revenue Service. “Form 2106-EZ”,
- U.S. Department of State. “Foreign Per Diem Rates by Location–DSSR 925”.
- U.S. General Services Administration. “Per Diem Rates”.
- U.S. General Services Administration. “FY 2020 Per Diem Rates for Aspen, Colorado”.
- Internal Revenue Service. “IRS Issues Standard Mileage Rate for 2021”.
