Instructions For Form 2106 - Employee Business Expenses

Part II—Vehicle

of service limits, that percentage is

compensated, in whole or in part, on

increased to 80% for business meals

a fee basis.

Expenses

consumed during, or incident to, any

If you qualify, include the part of

period of duty for which those limits

There are two methods for computing

the line 10 amount attributable to the

are in effect.

vehicle expenses—the standard

expenses you incurred for services

mileage rate and the actual expense

performed in that job in the total on

Employees subject to the DOT

method. You can use the standard

Form 1040, line 24, and attach Form

hours of service limits include certain

mileage rate for 2010 only if:

2106 to your return. These employee

air transportation employees, such as

•

You owned the vehicle and used

business expenses are deductible

pilots, crew, dispatchers, mechanics,

the standard mileage rate for the first

whether or not you itemize

and control tower operators;

year you placed the vehicle in

deductions.

interstate truck operators and

service, or

interstate bus drivers; certain railroad

Qualified performing artist. You

•

You leased the vehicle and are

employees, such as engineers,

are a qualified performing artist if you:

using the standard mileage rate for

conductors, train crews, dispatchers,

1. Performed services in the

the entire lease period (except the

and control operations personnel; and

performing arts as an employee for at

period, if any, before 1998).

certain merchant mariners.

least two employers during the tax

You cannot use actual expenses

Line 10. If you are one of the

year,

for a leased vehicle if you previously

individuals discussed below, special

2. Received from at least two of

used the standard mileage rate for

rules apply to deducting your

those employers wages of $200 or

that vehicle.

employee business expenses. Any

more per employer,

part of the line 10 total that is not

If you have the option of using

3. Had allowable business

deducted according to the special

either the standard mileage rate or

expenses attributable to the

rules should be entered on Schedule

actual expense method, you should

performing arts of more than 10% of

A (Form 1040), line 21 (or Schedule

figure your expenses both ways to

gross income from the performing

A (Form 1040NR), line 9).

find the method most beneficial to

arts, and

you. But when completing Form

4. Had adjusted gross income of

Ministers. Before entering your

2106, fill in only the sections that

$16,000 or less before deducting

total expenses on line 10, you must

apply to the method you choose.

expenses as a performing artist.

reduce them by the amount allocable

If you were a rural mail carrier and

to your tax-free allowance(s). See

In addition, if you are married, you

received an equipment maintenance

Pub. 517 for more information.

must file a joint return unless you

allowance, see the line 1 instructions

lived apart from your spouse for all of

Armed Forces reservist

on page 2.

2010. If you file a joint return, you

(member of a reserve component).

must figure requirements (1), (2), and

For more information on the

You are a member of a reserve

(3) separately for both you and your

standard mileage rate and actual

component of the Armed Forces of

spouse. However, requirement (4)

expenses, see Pub. 463.

the United States if you are in the

applies to the combined adjusted

Army, Navy, Marine Corps, Air Force,

Section A—General

gross income of both you and your

or Coast Guard Reserve; the Army

Information

spouse.

National Guard of the United States;

If you used two vehicles for business

the Air National Guard of the United

If you meet all the requirements for

during the year, use a separate

States; or the Reserve Corps of the

a qualified performing artist, include

column in Sections A, C, and D for

Public Health Service.

the part of the line 10 amount

each vehicle. If you used more than

attributable to performing-arts-related

If you qualify, complete Form 2106

two vehicles, complete and attach a

expenses in the total on Form 1040,

and include the part of the line 10

second Form 2106, page 2.

line 24 (or Form 1040NR, line 35),

amount attributable to the expenses

and attach Form 2106 to your return.

Line 11. Date placed in service is

for travel more than 100 miles away

Your performing-arts-related business

generally the date you first start using

from home in connection with your

expenses are deductible whether or

your vehicle. However, if you first

performance of services as a member

not you itemize deductions.

start using your vehicle for personal

of the reserves on Form 1040, line

use and later convert it to business

Disabled employee with

24, and attach Form 2106 to your

use, the vehicle is treated as placed

impairment-related work expenses.

return. The amount of expenses you

in service on the date you started

can deduct on Form 1040, line 24, is

Impairment-related work expenses

using it for business.

limited to the regular federal per diem

are the allowable expenses of an

Line 12. Enter the total number of

rate (for lodging, meals, and

individual with physical or mental

miles you drove each vehicle during

incidental expenses) and the

disabilities for attendant care at his or

2010.

standard mileage rate (for car

her place of employment. They also

expenses), plus any parking fees,

include other expenses in connection

Change from personal to

ferry fees, and tolls. These

with the place of employment that

business use. If you converted your

reserve-related travel expenses are

enable the employee to work. See

vehicle during the year from personal

deductible whether or not you itemize

Pub. 463 for more details.

to business use (or vice versa) and

deductions. See Pub. 463 for

you do not have mileage records for

If you qualify, enter the part of the

additional details on how to report

the time before the change to

line 10 amount attributable to

these expenses.

business use, enter the total number

impairment-related work expenses on

of miles driven after the change to

Fee-basis state or local

Schedule A (Form 1040), line 28 (or

business use.

government official. You are a

Schedule A (Form 1040NR), line 16).

qualifying fee-basis official if you are

These expenses are not subject to

Line 13. Do not include commuting

employed by a state or political

the 2% limit that applies to most other

miles on this line; commuting miles

subdivision of a state and are

employee business expenses.

are not considered business miles.

-4-

Instructions For Form 2106 - Employee Business Expenses - 2010 Page 4

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