Instructions For Form 2106 - Employee Business Expenses

2 0 09

Department of the Treasury

Internal Revenue Service

Instructions for Form 2106

Employee Business Expenses

•

Section references are to the Internal

Use the standard mileage rate (if

Purpose of Form

Revenue Code unless otherwise noted.

claiming vehicle expense), and

•

Use Form 2106 if you were an

Were not reimbursed by your

General Instructions

employee deducting ordinary and

employer for any expense (amounts

necessary expenses for your job. See

your employer included in box 1 of

the flowchart below to find out if you

What’s New

your Form W-2 are not considered

must file this form.

reimbursements for this purpose).

Standard mileage rate. The 2009

rate for business use of your vehicle

An ordinary expense is one that is

Recordkeeping

is 55 cents a mile.

common and accepted in your field of

You cannot deduct expenses for

trade, business, or profession. A

Depreciation limits on vehicles.

travel (including meals unless you

necessary expense is one that is

For 2009, the first-year limit on

used the standard meal allowance),

helpful and appropriate for your

depreciation, special depreciation

entertainment, gifts, or use of a car or

business. An expense does not have

allowance, and section 179 deduction

other listed property, unless you keep

to be required to be considered

for most vehicles remains $10,960

records to prove the time, place,

necessary.

($2,960 if you elect not to claim the

business purpose, business

special depreciation allowance). For

Form 2106-EZ. You can file Form

relationship (for entertainment and

trucks and vans, the first-year limit

2106-EZ, Unreimbursed Employee

gifts), and amounts of these

has decreased to $11,060 ($3,060 if

Business Expenses, provided you

expenses. Generally, you must also

you elect not to claim the special

were an employee deducting ordinary

have receipts for all lodging expenses

depreciation allowance). For more

and necessary expenses for your job

(regardless of the amount) and any

details, see page 8.

and you:

other expense of $75 or more.

Who Must File Form 2106

Do not file Form 2106.

A Were you an employee during the year?

See the instructions for Schedule C, C-EZ, E, or F.

Yes

Did you have job-related business expenses?

Do not file Form 2106.

Yes

Are you claiming job-related vehicle,

Were you reimbursed for any of your business

travel, transportation, meals, or

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)?

Yes

Are you a reservist, a qualified performing artist, a fee-basis

state or local government official, or an individual with a

Did you use a vehicle in your job in 2009 that

disability claiming impairment-related work expenses? See

you also used for business in a prior year?

the line 10 instructions for definitions.

Do not file Form 2106. Enter expenses on Schedule A

(Form 1040), line 21 or Schedule A (Form 1040NR), line

Are your deductible expenses more than your

9. These expenses include business gifts, education

reimbursements (count only reimbursements your

(tuition and books), home office, trade publications, etc.

employer did not include in box 1 of your Form W-2)?

For rules covering employer reporting of reimbursed

expenses, see the instructions for line 7.

Yes

Do not file Form 2106.

Is either (1) or (2) true?

Yes

Notes

1 You owned this vehicle and used the actual

● Generally, employee expenses are deductible only on

expense method in the first year you used the

line 21 of Schedule A (Form 1040) or line 9 of Schedule A

vehicle for business.

File Form 2106 (but

(Form 1040NR). But reservists, qualified performing artists,

see Notes).

2 You used a depreciation method other than

fee-based state or local government officials, and

individuals with disabilities should see the instructions for

straight line for this vehicle in a prior year.

line 10 to find out where to deduct employee expenses.

● Do not file Form 2106 if none of your expenses are

Yes

deductible because of the 2% limit on miscellaneous

File Form 2106.

itemized deductions.

Cat. No. 64188V

Instructions For Form 2106 - Employee Business Expenses - 2009

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