Instructions For Form 2106 - Employee Business Expenses

Part II—Vehicle

period of duty for which those limits

expenses you incurred for services

are in effect.

performed in that job in the total on

Expenses

Form 1040, line 24, and attach Form

Employees subject to the DOT

There are two methods for computing

2106 to your return. These employee

hours of service limits include certain

vehicle expenses—the standard

business expenses are deductible

air transportation employees, such as

mileage rate and the actual expense

whether or not you itemize

pilots, crew, dispatchers, mechanics,

method. You can use the standard

and control tower operators;

deductions.

mileage rate for 2011 only if:

interstate truck operators and

Qualified performing artist. You

•

interstate bus drivers; certain railroad

You owned the vehicle and used

are a qualified performing artist if you:

employees, such as engineers,

the standard mileage rate for the first

conductors, train crews, dispatchers,

1. Performed services in the

year you placed the vehicle in

and control operations personnel; and

performing arts as an employee for at

service, or

•

certain merchant mariners.

least two employers during the tax

You leased the vehicle and are

Line 10. If you are one of the

year,

using the standard mileage rate for

the entire lease period (except the

individuals discussed below, special

2. Received from at least two of

period, if any, before 1998).

rules apply to deducting your

those employers wages of $200 or

employee business expenses. Any

more per employer,

You cannot use actual expenses

part of the line 10 total that is not

3. Had allowable business

for a leased vehicle if you previously

deducted according to the special

used the standard mileage rate for

expenses attributable to the

rules should be entered on Schedule

that vehicle.

performing arts of more than 10% of

A (Form 1040), line 21 (or Schedule

gross income from the performing

If you have the option of using

A (Form 1040NR), line 7).

arts, and

either the standard mileage rate or

Ministers. Before entering your

4. Had adjusted gross income of

actual expense method, you should

total expenses on line 10, you must

$16,000 or less before deducting

figure your expenses both ways to

reduce them by the amount allocable

find the method most beneficial to

expenses as a performing artist.

to your tax-free allowance(s). See

you. But when completing Form

Pub. 517 for more information.

In addition, if you are married, you

2106, fill in only the sections that

must file a joint return unless you

Armed Forces reservist

apply to the method you choose.

lived apart from your spouse for all of

(member of a reserve component).

If you were a rural mail carrier and

2011. If you file a joint return, you

You are a member of a reserve

received an equipment maintenance

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

component of the Armed Forces of

allowance, see the line 1 instructions.

(3) separately for both you and your

the United States if you are in the

Army, Navy, Marine Corps, Air Force,

spouse. However, requirement (4)

For more information on the

or Coast Guard Reserve; the Army

applies to the combined adjusted

standard mileage rate and actual

National Guard of the United States;

expenses, see Pub. 463.

gross income of both you and your

the Air National Guard of the United

spouse.

Section A—General

States; or the Reserve Corps of the

Information

Public Health Service.

If you meet all the requirements for

a qualified performing artist, include

If you qualify, complete Form 2106

If you used two vehicles for business

the part of the line 10 amount

and include the part of the line 10

during the year, use a separate

attributable to performing-arts-related

amount attributable to the expenses

column in Sections A, C, and D for

expenses in the total on Form 1040,

for travel more than 100 miles away

each vehicle. If you used more than

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

from home in connection with your

two vehicles, complete and attach a

and attach Form 2106 to your return.

performance of services as a member

second Form 2106, page 2.

of the reserves on Form 1040, line

Your performing-arts-related business

Line 11. Date placed in service is

24, and attach Form 2106 to your

expenses are deductible whether or

generally the date you first start using

return. The amount of expenses you

not you itemize deductions.

your vehicle. However, if you first

can deduct on Form 1040, line 24, is

start using your vehicle for personal

Disabled employee with

limited to the regular federal per diem

use and later convert it to business

impairment-related work expenses.

rate (for lodging, meals, and

use, the vehicle is treated as placed

incidental expenses) and the

Impairment-related work expenses

in service on the date you started

standard mileage rate (for car

are the allowable expenses of an

using it for business.

expenses), plus any parking fees,

individual with physical or mental

Line 12. Enter the total number of

ferry fees, and tolls. These

disabilities for attendant care at his or

miles you drove each vehicle during

reserve-related travel expenses are

her place of employment. They also

2011.

deductible whether or not you itemize

include other expenses in connection

deductions. See Pub. 463 for

Change from personal to

with the place of employment that

additional details on how to report

business use. If you converted your

enable the employee to work. See

these expenses.

vehicle during the year from personal

Pub. 463 for more details.

Fee-basis state or local

to business use (or vice versa) and

government official. You are a

If you qualify, enter the part of the

you do not have mileage records for

the time before the change to

qualifying fee-basis official if you are

line 10 amount attributable to

business use, enter the total number

employed by a state or political

impairment-related work expenses on

of miles driven after the change to

subdivision of a state and are

Schedule A (Form 1040), line 28 (or

business use.

compensated, in whole or in part, on

Schedule A (Form 1040NR), line 14).

a fee basis.

These expenses are not subject to

Line 13. Do not include commuting

the 2% limit that applies to most other

If you qualify, include the part of

miles on this line; commuting miles

employee business expenses.

the line 10 amount attributable to the

are not considered business miles.

-4-

Instructions for Form 2106 (2011)

Instructions For Form 2106 - Employee Business Expenses - 2011 Page 4

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