Form 2106-EZ: Unreimbursed Employee Business Expenses

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Form 2106-EZ: Unreimbursed Employee Business Expenses

Overview

Form 2106-EZ was a simplified IRS form used by employees to claim deductions for ordinary and necessary unreimbursed business expenses—things like travel, lodging, meals, and vehicle costs—related to their jobs. The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated most miscellaneous itemized deductions for unreimbursed employee expenses for tax years beginning in 2018, so Form 2106-EZ was usable only through the 2017 tax year.

Although 2106-EZ is discontinued, the longer Form 2106 remains available for a limited set of employees who still qualify for these deductions.

Who could file (when 2106-EZ was in use)

Employees who incurred unreimbursed business expenses that were ordinary and necessary for their job could use Form 2106-EZ if they met the form’s criteria. Typical qualifying expenses included:
– Business travel (airfare, lodging, car rental, parking, tolls)
– Meals while traveling on business (subject to limits)
– Incidental expenses (valet tips, small out-of-pocket items)
– Vehicle expenses claimed using the standard mileage rate

After TCJA, most employees can no longer deduct these unreimbursed expenses, but a few groups still may use Form 2106:
– Armed Forces reservists
– Performing artists
– Fee-based state or local government officials
– Employees with impairment-related work expenses

How Form 2106-EZ worked

Form 2106-EZ had two main parts:
– Part I: Totaled unreimbursed business expenses (airfare, lodging, meals, parking, tolls, rentals, and totals from Part II).
– Part II: Calculated vehicle expenses using the standard mileage rate.

Key points:
– Meals were often limited (commonly 50% deductible for business-related meals).
– Taxpayers could use federal per diem rates instead of actual receipts for lodging and meals—GSA rates for domestic travel and State Department rates for foreign travel.
– For vehicle expenses, taxpayers multiplied business miles by the IRS standard mileage rate for the tax year.

Vehicle and related deductions still allowed

Even after the TCJA changes for employees, certain vehicle-related deductions remain available in other contexts:
– Self-employed individuals can deduct business use of a personal vehicle (standard mileage or actual expenses).
– Charitable and medical-related mileage deductions remain available under their respective rules.
– Moving expenses are largely disallowed for employees except for active-duty military who move due to a permanent change of station.

Note: The IRS sets the standard mileage rate annually (for example, the 2024 rate was $0.67 per mile). Always check the current IRS rate for the relevant tax year.

Eligible expenses (summary)

Expenses that were typically eligible on 2106-EZ included:
– Transportation (airfare, taxis, rideshare)
– Lodging while on business travel
– Meals while traveling (subject to limits)
– Parking and tolls
– Vehicle operating expenses via the standard mileage rate
– Incidental expenses (small tips, fees)

Current status and replacement

  • Form 2106-EZ: discontinued for tax years after 2017.
  • Form 2106: still exists but is limited to specific employee groups listed above.
  • Most employees cannot claim unreimbursed employee business expenses on their federal tax returns under TCJA provisions in effect for tax years 2018–2025.

Key takeaways

  • Form 2106-EZ simplified claiming unreimbursed employee business expenses but was eliminated for tax years beginning in 2018 by the TCJA.
  • A few employee categories retain the ability to deduct unreimbursed business expenses using Form 2106.
  • Self-employed taxpayers and certain other deductions (charitable, medical mileage) remain unaffected by these employee-specific changes.
  • Check current IRS rules and annual rates (per diem and mileage) when preparing returns or calculating deductions.

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