Instructions For Form 2106 - 2016 (Page 3 of 9) in pdf

Don't include expenses for meals

December 31, 2016, you must

verified the time, place, and business

and entertainment, taxes, or interest

consistently use either the rates for

purpose of the travel for that day.

on line 4. Deductible taxes are

the first 9 months of 2016 or the

Your employer reimbursed you for

entered on Schedule A (Form 1040),

updated rates.

vehicle expenses at the standard

Itemized Deductions, lines 5 through

mileage rate or according to a flat rate

For locations outside the

9; or Schedule A (Form 1040NR),

or stated schedule, and you verified

continental United States, the

line 1. Employees can't deduct car

the date of each trip, mileage, and

applicable rates are published each

loan interest.

business purpose of the vehicle use.

month. You can find these rates on

the Internet at

See Pub. 463 for more details.

Note. If line 4 is your only entry, don't

and select the option for “Foreign Per

complete Form 2106 unless you are

Allocating your reimbursement.

Diem Rates.”

claiming:

If your employer paid you a single

See Pub. 463 for details on how to

Performing-arts-related business

amount that covers meals and

figure your deduction using the

expenses as a qualified performing

entertainment as well as other

standard meal allowance, including

artist,

business expenses, you must allocate

special rules for partial days of travel

Expenses for performing your job

the reimbursement so that you know

and transportation workers.

as a fee-basis state or local

how much to enter in Column A and

government official, or

Column B of line 7. Use the following

Step 2—Enter Reimbursements

Impairment-related work expenses

worksheet to figure this allocation.

Received From Your Employer

as an individual with a disability.

for Expenses Listed in Step 1

Reimbursement Allocation

See the

line 10

instructions. If you

Worksheet

Line 7. Enter reimbursements

aren't required to file Form 2106, enter

(keep for your records)

received from your employer (or third

your expenses directly on Schedule A

party) for expenses shown in

Step 1

(Form 1040), line 21 (or Schedule A

1. Enter the total amount of

that weren't reported to you in box 1 of

(Form 1040NR), line 7).

reimbursements your

your Form W-2. This includes

Line 5. Enter your allowable meals

employer gave you that

reimbursements reported under code

and entertainment expense. Include

weren't reported to you

“L” in box 12 of Form W-2. Amounts

meals while away from your tax home

in box 1 of Form W-2

. . .

reported under code “L” are

overnight and other business meals

2. Enter the total amount of

reimbursements you received for

and entertainment.

your expenses for the

business expenses that weren't

periods covered by this

included as wages on Form W-2

Standard meal allowance.

reimbursement

because the expenses met specific

. . . . . . .

Instead of actual cost, you may be

IRS substantiation requirements.

able to claim the standard meal

3. Enter the part of the

amount on line 2 that was

allowance for your daily meals and

Generally, when your employer

your total expense for

incidental expenses (M&IE) while

pays for your expenses, the payments

meals and

away from your tax home overnight.

shouldn't be included in box 1 of your

entertainment

Under this method, instead of keeping

. . . . . . .

Form W-2 if, within a reasonable

records of your actual meal expenses,

period of time, you:

4. Divide line 3 by line 2.

you deduct a specified amount,

Enter the result as a

Accounted to your employer for the

depending on where you travel.

decimal (rounded to three

expenses, and

However, you must still keep records

places)

Were required to return, and did

. . . . . . . . . . . .

to prove the time, place, and business

return, any payment not spent (or

5. Multiply line 1 by line 4.

purpose of your travel.

considered not spent) for business

Enter the result here and

expenses.

in Column B, line 7

The standard meal allowance is the

. . . .

federal M&IE rate. For most small

If these payments were incorrectly

6. Subtract line 5 from line 1.

localities in the United States, this rate

included in box 1, ask your employer

Enter the result here and

is $51 a day. Most major cities and

for a corrected Form W-2.

in Column A, line 7

. . . .

many other localities in the United

Accounting to your employer.

Step 3—Figure Expenses

States qualify for higher rates. You

This means that you gave your

can find the rates that applied during

To Deduct on Schedule A

employer documentary evidence and

2016 on the Internet at

(Form 1040 or Form 1040NR)

an account book, diary, log, statement

perdiem. At the Per Diem Overview

of expenses, trip sheets, or similar

Line 9. Generally, you can deduct

page select “2016” for the rates in

statement to verify the amount, time,

only 50% of your business meal and

effect for the period January 1, 2016–

place, and business purpose of each

entertainment expenses, including

September 30, 2016. Select “Fiscal

expense. You are also treated as

meals incurred while away from home

Year 2017” for the period October 1,

having accounted for your expenses if

on business. However, if you were an

2016–December 31, 2016. However,

either of the following applies.

employee subject to the DOT hours of

you can apply the rates in effect

Your employer gave you a fixed

service limits, that percentage is

before October 1, 2016, for expenses

travel allowance that is similar in form

increased to 80% for business meals

of all travel within the United States for

to the per diem allowance specified by

consumed during, or incident to, any

2016 instead of the updated rates. For

the Federal Government and you

the period October 1, 2016–

Instructions for Form 2106 (2016)

-3-

Instructions For Form 2106 - 2016 Page 3

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