If you’re looking for instructions on how to fill out IRS Form 2106-EZ, the short answer is that you can’t. The IRS retired Form 2106-EZ after the 2017 tax year and has not reissued it. Employees who still qualify to deduct unreimbursed business expenses now use the full Form 2106, and only four narrow categories of workers are eligible to file it. Everyone else lost the deduction when Congress eliminated miscellaneous itemized deductions through the Tax Cuts and Jobs Act, a change made permanent in 2025.
Why Form 2106-EZ No Longer Exists
Form 2106-EZ was a one-page shortcut version of Form 2106. It let employees claim unreimbursed business expenses without working through the full form’s vehicle depreciation sections, and it was available to anyone who used the standard mileage rate and received no employer reimbursement.1Internal Revenue Service. IRS Form 2106-EZ
The Tax Cuts and Jobs Act of 2017 suspended miscellaneous itemized deductions subject to the 2% adjusted gross income floor for tax years 2018 through 2025.2Congressional Research Service. Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act) Unreimbursed employee business expenses fell into that category, so most workers could no longer deduct them at all. The IRS discontinued Form 2106-EZ rather than maintain a form almost nobody could use.
The suspension was originally scheduled to expire after 2025. The One Big Beautiful Bill Act, signed into law on July 4, 2025, made the elimination permanent. The current text of 26 U.S.C. § 67(h) bars miscellaneous itemized deductions for any tax year beginning after December 31, 2017, with no sunset date.3Office of the Law Revision Counsel. 26 U.S.C. 67 – 2-Percent Floor on Miscellaneous Itemized Deductions The IRS Form 2106 instructions now describe the change as an “elimination” rather than a suspension.4Internal Revenue Service. 2025 Instructions for Form 2106
Who Can Still File Form 2106
Four groups of employees remain eligible. Their deductions are classified as adjustments to gross income under 26 U.S.C. § 62(a)(2), which means they were never subject to the 2% floor that was eliminated. If you don’t fall into one of these categories, you cannot deduct unreimbursed work expenses on your federal return.
Armed Forces Reservists
Members of a reserve component of the Armed Forces can deduct travel expenses when they travel more than 100 miles from home in connection with their reserve duties. The deduction covers lodging, transportation, and meals for the entire period away from home. Deductible rates are capped at the federal per diem rates authorized for government employees.5Office of the Law Revision Counsel. 26 U.S.C. 62 – Adjusted Gross Income Defined
Qualified Performing Artists
Performing artists face the strictest eligibility test. All four conditions must be met during the tax year:
- You performed services in the performing arts for at least two separate employers.
- You earned at least $200 from each of those employers.
- Your allowable business expenses were more than 10% of your gross income from performing arts work.
- Your adjusted gross income, calculated before this deduction, did not exceed $16,000.
That $16,000 AGI cap has not been adjusted for inflation since the provision was enacted, which disqualifies most working performers.5Office of the Law Revision Counsel. 26 U.S.C. 62 – Adjusted Gross Income Defined
Fee-Basis State or Local Government Officials
Government officials whose compensation comes wholly or partly from fees rather than a regular salary can deduct expenses they pay out of pocket while performing their official duties. This typically applies to justices of the peace, notaries, and similar local officials paid per service performed.5Office of the Law Revision Counsel. 26 U.S.C. 62 – Adjusted Gross Income Defined
Employees With Impairment-Related Work Expenses
If you have a physical or mental disability that limits a major life activity, you can deduct expenses necessary for you to perform your job. The costs must be directly connected to your ability to work and must not be reimbursed by your employer.
Filling Out Form 2106
The full Form 2106 has two parts. Which sections you complete depends on whether you have vehicle expenses and how you calculate them.
Part I: Employee Business Expenses and Reimbursements
Part I reports your total expenses and subtracts any employer reimbursements. Two columns split the entries: Column A for travel and transportation costs other than meals, and Column B for meals.
- Line 1 takes the total vehicle expenses from Part II, calculated using either the standard mileage rate or actual costs.
- Line 2 captures parking fees, tolls, and transit costs that aren’t part of overnight travel.
- Line 3 covers lodging, airfare, car rentals, and other transportation costs for overnight trips away from your tax home. Meals do not go here.
- Line 4 is for remaining deductible expenses such as professional dues, work-related supplies, or continuing education costs.
Lines 7 through 9 handle employer reimbursements. If your employer paid you back for some expenses under an accountable plan, you subtract those amounts here, and only the unreimbursed portion counts toward your deduction. Line 10 produces your final deduction, which carries over to Schedule 1 (Form 1040), line 12.6Internal Revenue Service. Form 2106 – Employee Business Expenses
Part II: Vehicle Expenses
Complete Part II only if you used a personal vehicle for work. The top section asks for basic vehicle information: when you first placed it in service for business, total miles driven during the year, business miles, commuting miles, and average daily roundtrip commuting distance.6Internal Revenue Service. Form 2106 – Employee Business Expenses You then choose one of two calculation methods.
Standard Mileage Rate or Actual Costs
You pick one method per vehicle, and the choice sticks. If you go with actual expenses on a vehicle you own, you cannot switch back to the standard mileage rate for that vehicle in later years.
Standard Mileage Rate (Section B)
Multiply your business miles by the IRS standard mileage rate for the year. For 2026, that rate is 72.5 cents per mile.7Internal Revenue Service. The Standard Mileage Rates and Maximum Automobile Fair Market Values Have Been Updated for 2026 The rate covers gas, insurance, maintenance, and depreciation in a single figure. Parking fees and tolls can still be added on top. To use this method, you must have used the standard mileage rate from the first year you placed the vehicle in service (for vehicles you own), or used it for the entire lease period (for leased vehicles).8Internal Revenue Service. Instructions for Form 2106 (2025)
Actual Expense Method (Section C)
With this method, you total every vehicle-related cost for the year: gas, oil, repairs, insurance, registration fees, lease payments, and depreciation. You then multiply the total by your business-use percentage, which is business miles divided by total miles. The method rewards you when your vehicle is expensive to operate, but it demands detailed records for every expense category. The IRS instructions recommend calculating both methods to see which gives you the larger deduction.8Internal Revenue Service. Instructions for Form 2106 (2025)
Meal Expenses
Business meals paid for while traveling overnight for work are deductible at 50% of the actual cost. This applies to meals during business travel and meals with clients or business associates where business is discussed. Meals at company recreational events for all employees remain fully deductible. Enter total meal expenses in Column B of Part I; the form applies the 50% limit on line 9.
Records to Keep
The IRS expects contemporaneous records, meaning you log expenses as they happen rather than reconstructing them at tax time. For vehicle use, keep a mileage log showing the date, destination, business purpose, and miles driven for each trip. For everything else, keep receipts, credit card statements, and documentation showing the amount, date, place, and business purpose of each cost. Retain records for at least three years after you file.9Internal Revenue Service. How Long Should I Keep Records Inaccurate reporting can trigger an accuracy-related penalty of 20% of the resulting tax underpayment.10Internal Revenue Service. Accuracy-Related Penalty
Filing the Form
Attach the completed Form 2106 to your Form 1040. The deduction flows through Schedule 1, line 12, reducing your adjusted gross income before you reach taxable income. Because this is an above-the-line deduction for the four qualifying groups, you benefit whether you take the standard deduction or itemize. Most tax software supports Form 2106 and handles the Schedule 1 transfer automatically.
What Everyone Else Should Do Instead
If you don’t fall into one of the four qualifying groups, the federal deduction is closed to you. The practical alternative is getting your employer to reimburse you through an accountable plan. Under an accountable plan, reimbursements are tax-free to you and deductible for your employer.
The IRS requires three things for a reimbursement arrangement to qualify:
- A business connection. The expense must have been incurred while performing your job duties.
- Adequate accounting. You substantiate the expense to your employer within a reasonable time, with receipts or other documentation showing the amount, date, place, and business purpose.
- Return of excess. If your employer advances you more than you actually spend, you return the difference within a reasonable time.
Reimbursements that meet all three requirements don’t appear as income on your W-2. If the arrangement fails any of the three tests, the IRS treats the entire reimbursement as wages subject to income and payroll taxes.11Internal Revenue Service. Publication 463 (2025), Travel, Gift, and Car Expenses If your employer doesn’t have a reimbursement policy, raise the issue: the tax savings are real for both sides, and many smaller employers simply haven’t set one up.
A Note on State Returns
Some states still allow deductions for unreimbursed employee business expenses on state income tax returns, even though the federal deduction is gone for most workers. State rules vary widely. Some follow federal law completely; others maintain their own deduction schedules. If you have significant unreimbursed work costs, check your state’s income tax instructions or consult a tax professional to see whether a state-level deduction applies.