Form 2106: Who Still Files Employee Business Expenses
Published November 5, 2026
Form 2106 is a narrow form. It says it is for use only by Armed Forces reservists, qualified performing artists, certain state or local government officials, and employees with impairment-related work expenses. IRS: Form 2106 (2025)
Start with two questions
The instructions give a simple test. First, were you one of the four groups above during the year? If not, do not file Form 2106. Second, did you have job-related business expenses? If not, do not file it. The IRS says employees outside those groups may not use the form for their job costs. IRS: Instructions for Form 2106 (2025), Who Must File
Armed Forces reservists
A member of a reserve component can use Form 2106 for certain reserve travel. The travel must be more than 100 miles away from home for reserve service. The deduction is limited to the regular federal per diem rate for lodging, meals, and incidental costs. It also covers the standard mileage rate for car costs, plus parking, ferry charges, and tolls. These expenses are deductible whether or not you itemize. IRS: Instructions for Form 2106 (2025), Line 10
Qualified performing artists
To qualify, you must meet all four tests in the instructions:
- You performed services in the performing arts as an employee for at least two employers during the tax year.
- You received wages of $200 or more from each of at least two of those employers.
- Your allowable business expenses for the performing arts were more than 10% of your gross income from the performing arts.
- Your adjusted gross income was $16,000 or less before you deducted the expenses.
If you are married, you must file a joint return unless you lived apart from your spouse for all of 2025. For a joint return, tests 1, 2, and 3 are figured separately for each spouse. Test 4 uses your combined adjusted gross income. IRS: Instructions for Form 2106 (2025), Qualified performing artist
State and local officials paid by the service
Some state and local government officials are paid in whole or in part by the service they perform, rather than by salary. If you are in that group, the instructions say to include the expenses for that job on Schedule 1 (Form 1040), line 12, and attach Form 2106. IRS: Instructions for Form 2106 (2025), Line 10
Employees with impairment-related work expenses
Impairment-related work expenses are the allowable costs of a person with a physical or mental disability. Typical examples are attendant care at the place of work and other work-related costs that let the person do the job. These amounts go on Schedule A (Form 1040), line 16. The instructions give special rules for where to enter the total, so read them first. IRS: Instructions for Form 2106 (2025), Line 10
How the form is laid out
Part I lists your expenses and any reimbursements from your employer. Line 7 covers reimbursements reported in Form W-2, box 12, code L. Line 8 is the difference, and line 10 is the total you carry to the return. Part II covers vehicle costs. You choose the standard mileage rate or actual expenses. Line 14 is your business-use percentage, and lines 20 and 21 ask whether you have written evidence. IRS: Form 2106 (2025), Parts I and II
Keep a log that shows the date, place, and business purpose of each trip. The form asks whether you have evidence, and whether it is written.
Related reading
Read gig driver mileage and expense records for how to keep a mileage log. Read Schedule 1 basics to see where the total goes on your return.
General information, not advice for your situation.
Sources: Sources: IRS, Form 2106 (2025), Employee Business Expenses (https://www.irs.gov/pub/irs-pdf/f2106.pdf); IRS, Instructions for Form 2106 (2025) (https://www.irs.gov/pub/irs-pdf/i2106.pdf) This is general information, not advice about your specific return.
