Instructions For Form 2106 - Employee Business Expenses

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gifts), and amounts of these

Less than or equal to your qualified

maids, stewards or stewardesses and

expenses. Generally, you must also

reimbursements, do not file Form

others on ships, and hotel servants in

have receipts for all lodging expenses

2106 unless you have deductible

foreign countries;

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(regardless of the amount) and any

expenses other than vehicle

Transportation between places of

other expense of $75 or more.

expenses. If you have deductible

lodging or business and places where

expenses other than vehicle

meals are taken, if suitable meals can

Additional Information

expenses, skip line 1 and do not

be obtained at the temporary duty

include any qualified reimbursements

site; and

For more details about employee

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in column A on line 7.

Mailing cost associated with filing

business expenses, see:

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More than your qualified

travel vouchers and payment of

Pub. 463, Travel, Entertainment,

reimbursements, complete Part II of

employer-sponsored charge card

Gift, and Car Expenses.

Form 2106. Enter your total vehicle

billings.

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Pub. 529, Miscellaneous

expenses from line 29 on line 1 and

Incidental expenses do not include

Deductions.

the amount of your qualified

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expenses for laundry, cleaning and

Pub. 587, Business Use of Your

reimbursements in column A on line

pressing of clothing, lodging taxes, or

Home (Including Use by Daycare

the costs of telegrams or telephone

Providers).

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calls.

Pub. 946, How To Depreciate

If you are a rural mail carrier

Property.

and received a qualified

You can use an optional method

reimbursement, you cannot

(instead of actual cost) for deducting

CAUTION

use the standard mileage rate.

incidental expenses only. The amount

of the deduction is $3 a day for

Specific Instructions

Line 2. The expenses of commuting

incidental expenses paid or incurred

to and from work are not deductible.

for travel away from home in 2006.

See the line 15 instructions for the

Part I—Employee

You can use this method only if you

definition of commuting.

did not pay or incur any meal

Business Expenses and

Line 3. Enter lodging and

expenses. You cannot use this

transportation expenses connected

Reimbursements

method on any day you use the

with overnight travel away from your

standard meal allowance (defined in

Fill in all of Part I if you were

tax home (defined next). Do not

the instructions for line 5).

reimbursed for employee business

include expenses for meals and

Line 4. Enter other job-related

expenses. If you were not reimbursed

entertainment. For more details,

expenses not listed on any other line

for your expenses, skip line 7 and

including limits, see Pub. 463.

of this form. Include expenses for

complete the rest of Part I.

Tax home. Generally, your tax

business gifts, education (tuition, fees

home is your regular or main place of

Step 1—Enter Your

and books), home office, trade

business or post of duty regardless of

publications, etc. For details,

Expenses

where you maintain your family

including limits, see Pub. 463 and

home. If you do not have a regular or

Line 1. If you were a rural mail

Pub. 529.

main place of business because of

carrier, you can treat the amount of

the nature of your work, then your tax

At the time these instructions

qualified reimbursement you received

home is the place where you

went to print, Congress was

as the amount of your allowable

regularly live. If you do not fit in either

considering legislation that

expense. Because the qualified

CAUTION

of these categories, you are

would extend the deductions for

reimbursement is treated as paid

considered an itinerant and your tax

educator expenses and tuition and

under an accountable plan, your

home is wherever you work. As an

fees that expired at the end of 2005.

employer should not include the

itinerant, you are never away from

While certain of these expenses may

amount of reimbursement in your

home and cannot claim a travel

be deductible on Form 2106, it may

income.

expense deduction. For more details

be to your benefit to deduct them on

You were a rural mail carrier if you

on the definition of a tax home, see

your tax return as adjustments to your

were an employee of the United

Pub. 463.

total income. To find out if this

States Postal Service (USPS) who

legislation was enacted, and for more

Generally, you cannot deduct any

performed services involving the

details, go to , click on

expenses for travel away from your

collection and delivery of mail on a

More Forms and Publications, and

tax home for any period of temporary

rural route.

then on What’s Hot in forms and

employment of more than 1 year.

publications, or see Pub. 553,

Qualified reimbursements.

However, this rule does not apply for

Highlights of 2006 Tax Changes.

These are the amounts paid by the

any period in which you were a

USPS as an equipment maintenance

federal employee certified by the

If you are deducting home office

allowance under a collective

Attorney General as traveling in

expenses, see Pub. 587 for special

bargaining agreement between the

temporary duty status for the U.S.

instructions on how to report these

USPS and the National Rural Letter

government to investigate or

expenses.

Carriers’ Association, but only if such

prosecute a federal crime (or to

If you are deducting depreciation

amounts do not exceed the amount

provide support services for the

or claiming a section 179 deduction

that would have been paid under the

investigation or prosecution of that

for a cellular telephone or other

1991 collective bargaining agreement

crime).

similar telecommunications

(adjusted for changes in the

Incidental expenses. The term

equipment, a home computer, etc.,

Consumer Price Index since 1991).

“incidental expenses” means:

see Form 4562, Depreciation and

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If you were a rural mail carrier and

Fees and tips given to porters,

Amortization, to figure the

your vehicle expenses were:

baggage carriers, bellhops, hotel

depreciation and section 179

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Instructions For Form 2106 - Employee Business Expenses - 2006 Page 2

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