Instructions For Form 2106 - Employee Business Expenses

Note. If line 4 is your only entry, do

State Department home page, click

entertainment as well as other

not complete Form 2106 unless you

on “Per Diem Rates.”

business expenses, you must

are claiming:

allocate the reimbursement so that

See Pub. 463 for details on how to

•

Performing-arts-related business

you know how much to enter in

figure your deduction using the

expenses as a qualified performing

Column A and Column B of line 7.

standard meal allowance, including

artist,

Use the following worksheet to figure

special rules for partial days of travel

•

Expenses for performing your job

this allocation.

and transportation workers.

as a fee-basis state or local

Step 2—Enter

Reimbursement Allocation

government official, or

•

Impairment-related work expenses

Worksheet

Reimbursements Received

as an individual with a disability.

(keep for your records)

From Your Employer for

See the line 10 instructions that

Expenses Listed in Step 1

begin on this page for definitions. If

1. Enter the total amount of

Line 7. Enter reimbursements

reimbursements your

you are not required to file Form

employer gave you that were

received from your employer (or third

2106, enter your expenses directly on

not reported to you

party) for expenses shown in Step 1

Schedule A (Form 1040), line 21 (or

in box 1 of Form W-2 . . . . . .

that were not reported to you in box 1

Schedule A (Form 1040NR), line 9).

of your Form W-2. This includes

2. Enter the total amount of your

Line 5. Enter your allowable meals

reimbursements reported under code

expenses for the periods

and entertainment expense. Include

“L” in box 12 of Form W-2. Amounts

covered by this

meals while away from your tax home

reported under code “L” are

reimbursement . . . . . . . . . .

overnight and other business meals

reimbursements you received for

3. Enter the part of the amount

and entertainment.

business expenses that were not

on line 2 that was your total

Standard meal allowance.

included as wages on Form W-2

expense for meals and

Instead of actual cost, you may be

because the expenses met specific

entertainment . . . . . . . . . . .

able to claim the standard meal

IRS substantiation requirements.

4. Divide line 3 by line 2.

allowance for your daily meals and

Generally, when your employer

Enter the result as a decimal

incidental expenses (M&IE) while

pays for your expenses, the

(rounded to three places) . . .

away from your tax home overnight.

payments should not be included in

Under this method, instead of

5. Multiply line 1 by line 4. Enter

box 1 of your Form W-2 if, within a

the result here and

keeping records of your actual meal

reasonable period of time, you:

in Column B, line 7 . . . . . . .

expenses, you deduct a specified

•

Accounted to your employer for the

amount, depending on where you

6. Subtract line 5 from line 1.

expenses, and

travel. However, you must still keep

•

Enter the result here and

Were required to return, and did

records to prove the time, place, and

in Column A, line 7 . . . . . . .

return, any payment not spent (or

business purpose of your travel.

considered not spent) for business

The standard meal allowance is

expenses.

Step 3—Figure Expenses

the federal M&IE rate. For most small

If these payments were incorrectly

To Deduct on Schedule A

localities in the United States, this

included in box 1, ask your employer

(Form 1040 or Form 1040NR)

rate is $39 a day for the period from

for a corrected Form W-2.

January 1 through September 30,

Line 9. Generally, you can deduct

Accounting to your employer.

2009, and $46 a day for the period

only 50% of your business meal and

This means that you gave your

October 1 through December 31,

entertainment expenses, including

employer documentary evidence and

2009. Most major cities and many

meals incurred while away from home

an account book, diary, log,

other localities in the United States

on business. However, if you were an

statement of expenses, trip sheets, or

qualify for higher rates. You can find

employee subject to the DOT hours

similar statement to verify the

these rates on the Internet at

of service limits, that percentage is

amount, time, place, and business

At the GSA home page

increased to 80% for business meals

purpose of each expense. You are

click on “Per Diem Rates.” At the

consumed during, or incident to, any

also treated as having accounted for

Domestic Per Diem Rates page

period of duty for which those limits

your expenses if either of the

select “2009” for the rates in effect for

are in effect.

following applies.

the period January 1,

•

Your employer gave you a fixed

Employees subject to the DOT

2009– September 30, 2009. Select

travel allowance that is similar in form

hours of service limits include certain

“2010” for the period October 1,

to the per diem allowance specified

2009– December 31, 2009. However,

air transportation employees, such as

by the Federal Government and you

you can apply the rates in effect

pilots, crew, dispatchers, mechanics,

verified the time, place, and business

before October 1, 2009, for expenses

and control tower operators;

purpose of the travel for that day.

interstate truck operators and

of all travel within the United States

•

Your employer reimbursed you for

for 2009 instead of the updated rates.

interstate bus drivers; certain railroad

vehicle expenses at the standard

For the period October 1,

employees, such as engineers,

mileage rate or according to a flat

2009– December 31, 2009, you must

conductors, train crews, dispatchers,

rate or stated schedule, and you

consistently use either the rates for

and control operations personnel; and

verified the date of each trip, mileage,

certain merchant mariners.

the first 9 months of 2009 or the

and business purpose of the vehicle

updated rates.

Line 10. If you are one of the

use.

For locations outside the

individuals discussed below, special

See Pub. 463 for more details.

continental United States, the

rules apply to deducting your

applicable rates are published each

Allocating your reimbursement.

employee business expenses. Any

month. You can find these rates on

If your employer paid you a single

part of the line 10 total that is not

the Internet at At the

amount that covers meals and

deducted according to the special

-3-

Instructions For Form 2106 - Employee Business Expenses - 2009 Page 3

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