Instructions For Form 2106 - Employee Business Expenses

Recordkeeping

Line 2. See the line 15 instructions

business gifts, education (tuition and

for the definition of commuting.

books), home office, trade

You cannot deduct expenses for

publications, etc. For details,

Line 3. Enter lodging and

travel (including meals unless you

including limits, see Pub. 463 and

transportation expenses connected

used the standard meal allowance),

Pub. 529. Do not include on line 4

with overnight travel away from your

entertainment, gifts, or use of a car or

any tuition and fees you deducted on

tax home (defined later). Do not

other listed property, unless you keep

Form 1040, line 26, or any educator

include expenses for meals and

records to prove the time, place,

expenses you deducted on Form

entertainment. For more details,

business purpose, business

1040, line 23.

including limits, see Pub. 463.

relationship (for entertainment and

gifts), and amounts of these

If you are deducting home office

Instead of keeping records of your

expenses. Generally, you must also

expenses, see Pub. 587 for special

actual incidental expenses, you can

have receipts for all lodging expenses

instructions on how to report these

use an optional method for

(regardless of the amount) and any

expenses.

deducting incidental expenses

other expense of $75 or more.

only if you did not pay or incur meal

If you are deducting depreciation

expenses on a day you were traveling

or claiming a section 179 deduction

Additional Information

away from your tax home. The

for a cellular telephone or other

amount of the deduction is $2 a day

For more details about employee

similar telecommunications

for the period from January 1 through

business expenses, see:

equipment, a home computer, etc.,

•

October 31, 2003, and $3 a day for

Pub. 463, Travel, Entertainment,

see Form 4562, Depreciation and

the period from November 1 through

Gift, and Car Expenses.

Amortization, to figure the

•

December 31, 2003. Incidental

Pub. 529, Miscellaneous

depreciation and section 179

expenses include fees and tips given

Deductions.

deduction to enter on line 4.

•

to porters, baggage carriers,

Pub. 587, Business Use of Your

You may be able to take a

bellhops, hotel maids, stewards or

Home (Including Use by Daycare

TIP

credit for your educational

stewardesses and others on ships,

Providers).

•

expenses instead of a

and hotel servants in foreign

Pub. 946, How To Depreciate

deduction. See Form 8863,

countries. They do not include

Property.

Education Credits (Hope and Lifetime

expenses for laundry, cleaning and

Learning Credits) for details.

pressing of clothing, lodging taxes, or

the costs of telegrams or telephone

Specific Instructions

Do not include expenses for meals

calls. You cannot use this method on

and entertainment, taxes, or interest

any day that you use the standard

on line 4. Deductible taxes are

Part I—Employee

meal allowance (as explained in the

entered on lines 5 through 9 of

instructions for line 5).

Business Expenses and

Schedule A (Form 1040). Employees

Generally, you cannot deduct any

cannot deduct car loan interest.

Reimbursements

expenses for travel away from your

Note: If line 4 is your only entry, do

Fill in all of Part I if you were

tax home for any period of temporary

not complete Form 2106, unless you

reimbursed for employee business

employment of more than 1 year.

are claiming:

expenses. If you were not reimbursed

However, this rule does not apply for

•

Expenses for performing your job

for your expenses, skip line 7 and

any period in which you were a

as a fee-basis state or local

complete the rest of Part I.

Federal employee certified by the

government official,

Attorney General as traveling in

•

Performing-arts-related business

Step 1—Enter Your

temporary duty status for the U.S.

expenses as a qualified performing

Expenses

government to investigate or

artist, or

prosecute a Federal crime (or to

•

Line 1. If you were a rural mail

Impairment-related work expenses

provide support services for the

carrier, your deduction for vehicle

as an individual with a disability.

investigation or prosecution of that

expense is equal to your equipment

See the line 10 instructions for

crime).

maintenance allowance. This rule

definitions. If you are not required to

applies to you if you were an

Generally, your tax home is your

file Form 2106, enter your expenses

main place of business or post of duty

employee of the United States Postal

directly on Schedule A (Form 1040),

Service (USPS) who performed

regardless of where you maintain

line 20.

your family home. If you do not have

services involving the collection and

Line 5. Enter your allowable meals

delivery of mail on a rural route. You

a regular or main place of business

and entertainment expense. Include

because of the nature of your work,

also must have received the

meals while away from your tax home

equipment maintenance allowance

then your tax home is the place

overnight and other business meals

under a collective bargaining

where you regularly live. If you do not

and entertainment. Instead of actual

agreement between the USPS and

fit in either of these categories, you

cost, you may be able to claim the

the National Rural Letter Carriers’

are considered an itinerant and your

standard meal allowance for your

Association, paid at a rate that does

tax home is wherever you work. As

daily meals and incidental expenses

not exceed the rate contained in the

an itinerant, you are never away from

while away from your tax home

1991 collective bargaining

home and cannot claim a travel

overnight. Under this method, you

agreement, adjusted for inflation.

expense deduction. For more details

deduct a specified amount,

on your tax home, see Pub. 463.

If this rule applies to you, you

depending on where you travel,

should complete Form 2106 only if

Line 4. Enter other job-related

instead of keeping records of your

you have expenses to deduct other

expenses not listed on any other line

actual meal expenses. However, you

than vehicle expenses.

of this form. Include expenses for

must still keep records to prove the

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Instructions For Form 2106 - Employee Business Expenses - 2003 Page 2

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