Form 2106

Form 2106, Employee Business Expenses, is the federal tax form used to deduct unreimbursed business expenses an employee incurs on the job, things like travel, meals, lodging, or other work-related costs paid out of pocket.

Under current U.S. tax law, most employees cannot deduct these expenses anymore. The Tax Cuts and Jobs Act of 2017 suspended miscellaneous itemized deductions subject to the 2% adjusted gross income limit through 2025. A few groups are still exempt from that suspension, though: Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and certain disabled employees can still use Form 2106.

For those who qualify, reporting eligible expenses on Form 2106 reduces taxable income, as long as they follow IRS rules and keep the right documentation.