Instructions For Form 2106 - Employee Business Expenses

Employees subject to the DOT

Qualified performing artist. You

year you placed the vehicle in

hours of service limits include certain

are a qualified performing artist if you:

service, or

•

air transportation employees, such as

You leased the vehicle and are

1. Performed services in the

pilots, crew, dispatchers, mechanics,

using the standard mileage rate for

performing arts as an employee for at

and control tower operators;

the entire lease period (except the

least two employers during the tax

interstate truck operators and

period, if any, before 1998).

year,

interstate bus drivers; certain railroad

2. Received from at least two of

You cannot use actual expenses

employees, such as engineers,

those employers wages of $200 or

for a leased vehicle if you previously

conductors, train crews, dispatchers,

more per employer,

used the standard mileage rate for

and control operations personnel; and

3. Had allowable business

that vehicle.

certain merchant mariners.

expenses attributable to the

If you have the option of using

performing arts of more than 10% of

Line 10. If you are one of the

either the standard mileage rate or

gross income from the performing

individuals discussed below, special

actual expense method, you should

arts, and

rules apply to deducting your

figure your expenses both ways to

4. Had adjusted gross income of

employee business expenses. Any

find the method most beneficial to

$16,000 or less before deducting

part of the line 10 total that is not

you. But when completing Form

expenses as a performing artist.

deducted according to the special

2106, fill in only the sections that

rules should be entered on Schedule

In addition, if you are married, you

apply to the method you choose.

A (Form 1040), line 20 (or Schedule

must file a joint return unless you

If you were a rural mail carrier and

A (Form 1040NR), line 9).

lived apart from your spouse for all of

received an equipment maintenance

2006. If you file a joint return, you

Ministers. Before entering your

allowance, see the line 1 instructions.

must figure requirements (1), (2), and

total expenses on line 6, you must

(3) separately for both you and your

For more information on the

reduce them by the amount allocable

spouse. However, requirement (4)

standard mileage rate and actual

to your tax-free allowance(s). See

applies to the combined adjusted

expenses, see Pub. 463.

Pub. 517 for more information.

gross income of both you and your

Armed Forces reservist

Section A—General

spouse.

(member of a reserve component).

Information

If you meet all the requirements,

You are a member of a reserve

If you used two vehicles for business

include the part of the line 10 amount

component of the Armed Forces of

attributable to performing-arts-related

during the year, use a separate

the United States if you are in the

expenses in the total on Form 1040,

column in Sections A, C, and D for

Army, Navy, Marine Corps, Air Force,

line 24 (or Form 1040NR, line 34),

each vehicle. If you used more than

or Coast Guard Reserve; the Army

and attach Form 2106 to your return.

two vehicles, complete and attach a

National Guard of the United States;

Your performing-arts-related business

second Form 2106, page 2.

the Air National Guard of the United

expenses are deductible whether or

States; or the Reserve Corps of the

Line 11. Date placed in service is

not you itemize deductions.

Public Health Service.

generally the date you first start using

Disabled employee with

your vehicle. However, if you first

If you qualify, include the part of

impairment-related work expenses.

start using your vehicle for personal

the line 10 amount attributable to the

Impairment-related work expenses

use and later convert it to business

expenses for travel more than 100

are the allowable expenses of an

use, the vehicle is treated as placed

miles away from home in connection

individual with physical or mental

in service on the date you started

with your performance of services as

disabilities for attendant care at his or

using it for business.

a member of the reserves on Form

her place of employment. They also

Line 12. Enter the total number of

1040, line 24, and attach Form 2106

include other expenses in connection

miles you drove each vehicle during

to your return. These reserve-related

with the place of employment that

2006. But if you converted your

travel expenses are deductible

enable the employee to work. See

vehicle during the year from personal

whether or not you itemize

Pub. 463 for more details.

to business use (or vice versa), enter

deductions. See Pub. 463 for

If you qualify, enter the part of the

the total miles for only the months

additional details on how to report

line 10 amount attributable to

you drove the vehicle for business.

these expenses.

impairment-related work expenses on

Line 13. Do not include commuting

Fee-basis state or local

Schedule A (Form 1040), line 27 (or

miles on this line; commuting miles

government official. You are a

Schedule A (Form 1040NR), line 16).

are not considered business miles.

qualifying fee-basis official if you are

These expenses are not subject to

See the line 15 instructions for the

employed by a state or political

the 2% limit that applies to most other

definition of commuting.

subdivision of a state and are

employee business expenses.

compensated, in whole or in part, on

Line 14. Divide line 13 by line 12 to

a fee basis.

Part II—Vehicle

figure your business use percentage.

However, if you converted your

If you qualify, include the part of

Expenses

vehicle during the year from personal

the line 10 amount attributable to the

There are two methods for computing

to business use (or vice versa),

expenses you incurred for services

vehicle expenses —the standard

multiply this percentage by the

performed in that job in the total on

number of months you drove the

mileage rate and the actual expense

Form 1040, line 24, and attach Form

vehicle for business and divide the

method. You can use the standard

2106 to your return. These employee

result by 12.

mileage rate for 2006 only if:

business expenses are deductible

•

whether or not you itemize

You owned the vehicle and used

Line 15. Enter your average daily

deductions.

the standard mileage rate for the first

round trip commuting distance. If you

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Instructions For Form 2106 - Employee Business Expenses - 2006 Page 4

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