Instructions For Form 2106 - Employee Business Expenses - 2010
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82010
Department of the Treasury
Internal Revenue Service
Instructions for Form 2106
Employee Business Expenses
allowance). For more details, see
information about deducting
Section references are to the Internal
Revenue Code unless otherwise noted.
page 8.
unreimbursed employee expenses,
General Instructions
see Pub. 529.
Special Depreciation Allowance.
For vehicles acquired new after
Purpose of Form
September 8, 2010, and placed in
What’s New
Use Form 2106 if you were an
service before the end of the year,
the additional first year depreciation
employee deducting ordinary and
Standard mileage rate. The 2010
necessary expenses for your job. See
deduction is 100% of the depreciable
rate for business use of your vehicle
basis of the vehicle instead of 50%.
the flowchart below to find out if you
is 50 cents a mile.
must file this form.
Depreciation limits on vehicles.
Cell phones. Cellular telephones
For 2010, the first-year limit on
and other similar telecommunications
An ordinary expense is one that is
depreciation, special depreciation
equipment are no longer listed
common and accepted in your field of
allowance, and section 179 deduction
property. Beginning in 2010, an
trade, business, or profession. A
for most vehicles is $11,060 ($3,060
employee may be able to deduct
necessary expense is one that is
if you elect not to claim the special
job-related expenses related to using
helpful and appropriate for your
depreciation allowance). For trucks
a cell phone even though the use
business. An expense does not have
and vans, the first-year limit is
was not for the convenience of his or
$11,160 ($3,160 if you elect not to
her employer and required as a
to be required to be considered
necessary.
claim the special depreciation
condition of employment. For more
Who Must File Form 2106
No
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
No
B
Did you have job-related business expenses?
Do not file 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 qualified performing artist, a fee-basis
state or local government official, or an individual with a
F
Did you use a vehicle in your job in 2010 that
No
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
No
(Form 1040), line 21 or Schedule A (Form 1040NR), line
H
Are your deductible expenses more than your
9. These expenses include business gifts, education
reimbursements (count only reimbursements your
No
(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.
G
Is either (1) or (2) true?
No
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-basis state or local government officials, and
straight line for this vehicle in a prior year.
individuals with disabilities should see the instructions for
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
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