2016
Department of the Treasury
Internal Revenue Service
Instructions for Form 2106
Employee Business Expenses
trucks and vans, the first-year limit is
business. An expense doesn't have to
Section references are to the Internal
Revenue Code unless otherwise noted.
$11,560 ($3,560 if you elect not to
be required to be considered
claim the special depreciation
necessary.
Future Developments
allowance). For more details, see the
Form 2106-EZ. You can file Form
For the latest developments related to
discussion under
2106-EZ, Unreimbursed Employee
Form 2106 and its instructions, such
Section D—Depreciation of
Vehicles,
Business Expenses, provided you
as legislation enacted after they were
later.
were an employee deducting ordinary
published, go to
and necessary expenses for your job
General Instructions
form2106.
and you:
Use the standard mileage rate (if
What's New
Purpose of Form
claiming vehicle expense), and
Standard mileage rate. The 2016
Weren't reimbursed by your
Use Form 2106 if you were an
rate for business use of your vehicle is
employer for any expense (amounts
employee deducting ordinary and
54 cents (0.54) a mile.
your employer included in box 1 of
necessary expenses for your job. See
your Form W-2, Wage and Tax
the flowchart below to find out if you
Depreciation limits on vehicles.
Statement, aren't considered
must file this form.
For 2016, the first-year limit on
reimbursements for this purpose).
depreciation, special depreciation
An ordinary expense is one that is
allowance, and section 179 deduction
Recordkeeping
common and accepted in your field of
for most vehicles remains at $11,160
trade, business, or profession. A
You can't deduct expenses for travel
($3,160 if you elect not to claim the
necessary expense is one that is
(including meals unless you used the
special depreciation allowance). For
helpful and appropriate for your
standard meal allowance),
Who Must File Form 2106
No
Don’t le Form 2106.
A Were you an employee during the year?
See the instructions for Schedule C, C-EZ, E, or F.
Yes
No
B
Did you have job-related business expenses?
Don’t le Form 2106.
Yes
Yes
D
Are you claiming job-related vehicle,
C
Were you reimbursed for any of your business
travel, transportation, meals, or
No
File Form 2106 (but
expenses (count only reimbursements your employer
entertainment expenses?
see Notes below).
did not include in box 1 of your Form W-2)?
No
Yes
Yes
E
Are you a reservist, a quali ed performing artist, a fee-basis
state or local government of cial, or an individual with a
F
Did you use a vehicle in your job in 2016 that
No
disability claiming impairment-related work expenses? See
you also used for business in a prior year?
the line 10 instructions for de nitions.
Don’t le Form 2106. Enter expenses on Schedule A
No
H
Are your deductible expenses more than your
(Form 1040), line 21 or Schedule A (Form 1040NR), line
reimbursements (count only reimbursements your
7. These expenses include business gifts, education
No
employer didn’t include in box 1 of your Form W-2)?
(tuition and books), home of ce, trade publications, etc.
For rules covering employer reporting of reimbursed
expenses, see the instructions for line 7.
Yes
Don’t le Form 2106.
Notes
G
Is either (1) or (2) true?
No
Yes
• Generally, employee expenses are deductible only
1 You owned this vehicle and used the actual
on line 21 of Schedule A (Form 1040) or line 7 of
expense method in the rst year you used the
Schedule A (Form 1040NR). But reservists, quali ed
vehicle for business.
File Form 2106 (but
performing artists, fee-basis state or local government
see Notes).
2 You used a depreciation method other than
of cials, and individuals with disabilities should see the
straight line for this vehicle in a prior year.
instructions for line 10 to nd out where to deduct
employee expenses.
Yes
• Don’t file Form 2106 if none of your expenses are
deductible because of the 2% limit on miscellaneous
File Form 2106.
itemized deductions.
Sep 07, 2016
Cat. No. 64188V