Form 2106-EZ Unreimbursed Employee Business Expenses

Form

2106-EZ

OMB No. 1545-0074

2007

Unreimbursed Employee Business Expenses

Department of the Treasury
Internal Revenue Service

©

Attachment
Sequence No.

Attach to Form 1040 or Form 1040NR.

Your name

Occupation in which you incurred expenses

54A

Social security number

You May Use This Form Only if All of the Following Apply.
● You are an employee deducting ordinary and necessary expenses attributable to your job. An ordinary expense is one that is
common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate
for your business. An expense does not have to be required to be considered necessary.
● You do not get reimbursed by your employer for any expenses (amounts your employer included in box 1 of your Form W-2 are
not considered reimbursements for this purpose).
● If you are claiming vehicle expense, you are using the standard mileage rate for 2007.
Caution: You can use the standard mileage rate for 2007 only if: (a) you owned the vehicle and used the standard mileage rate for the first year
you placed the vehicle in service, or (b) you leased the vehicle and used the standard mileage rate for the portion of the lease period after 1997.

Part I

1

2

3

4

5

6

Figure Your Expenses

Vehicle expense using the standard mileage rate. Complete Part II and multiply line 8a by 48.5¢
(.485)

1

Parking fees, tolls, and transportation, including train, bus, etc., that did not involve overnight
travel or commuting to and from work

2

Travel expense while away from home overnight, including lodging, airplane, car rental, etc.
Do not include meals and entertainment

3

Business expenses not included on lines 1 through 3.
entertainment

4

Do not

include meals and

Meals and entertainment expenses: $
× 50% (.50). (Employees subject to
Department of Transportation (DOT) hours of service limits: Multiply meal expenses incurred
while away from home on business by 75% (.75) instead of 50%. For details, see instructions.)

5

Total expenses. Add lines 1 through 5. Enter here and on Schedule A (Form 1040), line 21
(or on Schedule A (Form 1040NR, line 9)). (Armed Forces reservists, fee-basis state or local
government officials, qualified performing artists, and individuals with disabilities: See the
instructions for special rules on where to enter this amount.)

6

Part II

Information on Your Vehicle. Complete this part only if you are claiming vehicle expense on line 1.
©

7

When did you place your vehicle in service for business use? (month, day, year)

8

Of the total number of miles you drove your vehicle during 2007, enter the number of miles you used your vehicle for:
a Business

9
10

b Commuting (see instructions)

/

/

c Other

Do you (or your spouse) have another vehicle available for personal use?

Yes

No

Was your vehicle available for personal use during off-duty hours?

Yes

No

Yes

No

11a Do you have evidence to support your deduction?
b If “Yes,” is the evidence written?
For Paperwork Reduction Act Notice, see page 4.

Cat. No. 20604Q

Form

Yes

No

2106-EZ

(2007)

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Form 2106-EZ (2007)

Instructions for
Form 2106-EZ
Section references are to the Internal
Revenue Code.

What’s New
Standard mileage rate. For 2007, the
standard mileage rate for each mile of
business use is 48.5 cents.

Purpose of Form
You may use Form 2106-EZ instead of
Form 2106 to claim your unreimbursed
employee business expenses if you
meet all the requirements listed above
Part I of the form.

Recordkeeping
You cannot deduct expenses for travel
(including meals, unless you used the
standard meal allowance), entertainment,
gifts, or use of a car or other listed
property, unless you keep records to
prove the time, place, business purpose,
business relationship (for entertainment
and gifts), and amounts of these
expenses. Generally, you must also have
receipts for all lodging expenses
(regardless of the amount) and any other
expense of $75 or more.

Additional Information
For more details about employee
business expenses, see:
Pub. 463, Travel, Entertainment, Gift,
and Car Expenses
Pub. 529, Miscellaneous Deductions
Pub. 587, Business Use of Your Home
(Including Use by Daycare Providers)
Pub. 946, How To Depreciate Property

Specific Instructions
Part I—Figure Your
Expenses
Line 2. See the line 8b instructions for
the definition of commuting.
Line 3. Enter lodging and transportation
expenses connected with overnight
travel away from your tax home (defined
on this page). You cannot deduct
expenses for travel away from your tax
home for any period of temporary
employment of more than 1 year. Do not
include expenses for meals and
entertainment on this line. For more
details, including limits, see Pub. 463.
If you did not pay or incur meal
expenses on a day you were traveling
away from your tax home, you can use
an optional method for deducting
incidental expenses instead of keeping
records of your actual incidental
expenses. The amount of the deduction
is $3 a day. Incidental expenses include

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fees and tips given to porters, baggage
carriers, bellhops, hotel maids, stewards
or stewardesses and others on ships,
and hotel servants in foreign countries.
They do not include expenses for
laundry, cleaning and pressing of
clothing, lodging taxes, or the costs of
telegrams or telephone calls. You cannot
use this method on any day that you use
the standard meal allowance (as
explained in the instructions for line 5).
Tax home. Generally, your tax home
is your main place of business or post of
duty regardless of where you maintain
your family home. If you do not have a
regular or main place of business
because of the nature of your work, then
your tax home is the place where you
regularly live. If you do not fit in either of
these categories, you are considered an
itinerant and your tax home is wherever
you work. As an itinerant, you are never
away from home and cannot claim a
travel expense deduction. For more
information about determining your tax
home, see Pub. 463.
Line 4. Enter other job-related expenses
not listed on any other line of this form.
Include expenses for business gifts,
education (tuition and books), home
office, trade publications, etc. For details,
including limits, see Pub. 463 and
Pub. 529.
Do not include on line 4 any educator
expenses you deducted on Form 1040,
line 23, or any tuition and fees you
deducted on Form 1040, line 34.
If you are deducting home office
expenses, see Pub. 587 for special
instructions on how to report these
expenses.
If you are deducting depreciation or
claiming a section 179 deduction on a
cellular telephone or other similar
telecommunications equipment, a home
computer, etc., see Form 4562,
Depreciation and Amortization, to figure
the depreciation and section 179
deduction to enter on line 4.
You may be able to take a
credit for your educational
TIP
expenses instead of a
deduction. See Form 8863,
Education Credits, for details.
Do not include expenses for meals
and entertainment, taxes, or interest on
line 4. Deductible taxes are entered on
Schedule A (Form 1040), lines 5 through
9 (or Schedule A (Form 1040NR), lines 1
through 3). Employees cannot deduct
car loan interest.
Note. If line 4 is your only entry, do not
complete Form 2106-EZ unless you are
claiming:
● Expenses for performing your job as a
fee-basis state or local government
official,

3

● Performing-arts-related business
expenses as a qualified performing
artist, or
● Impairment-related work expenses as
an individual with a disability.
See the line 6 instructions for
definitions. If you are not required to file
Form 2106-EZ, enter your expenses
directly on Schedule A (Form 1040),
line 21 (or on Schedule A (Form
1040NR), line 9).
Line 5. Generally, you can deduct only
50% of your business meal and
entertainment expenses, including meals
incurred while away from home on
business. If you were an employee
subject to the Department of
Transportation (DOT) hours of service
limits, that percentage is 75% for
business meals consumed during, or
incident to, any period of duty for which
those limits are in effect.
Employees subject to the DOT hours
of service limits include certain air
transportation employees, such as pilots,
crew, dispatchers, mechanics, and
control tower operators; interstate truck
operators and interstate bus drivers;
certain railroad employees, such as
engineers, conductors, train crews,
dispatchers, and control operations
personnel; and certain merchant
mariners.
Instead of actual cost, you may be
able to claim the standard meal
allowance for your daily meals and
incidental expenses (M&IE) while away
from your tax home overnight. Under
this method, you deduct a specified
amount, depending on where you travel,
instead of keeping records of your actual
meal expenses. However, you must still
keep records to prove the time, place,
and business purpose of your travel.
The standard meal allowance is the
federal M&IE rate. For most small
localities in the United States, this rate is
$39 a day for the period from January 1
through December 31, 2007. Most major
cities and many other localities in the
United States qualify for higher rates. You
can find these rates on the Internet at
www.gsa.gov.
For locations outside the continental
United States, the applicable rates are
published each month. You can find these
rates on the Internet at www.state.gov.
See Pub. 463 for details on how to
figure your deduction using the standard
meal allowance, including special rules
for partial days of travel and for
transportation workers.

Form 2106-EZ (2007)

Line 6. If you are one of the individuals
discussed below, special rules apply to
deducting your employee business
expenses.
Ministers. Before entering your total
expenses on line 6, you must reduce
them by the amount allocable to your
tax-free allowance(s). See Pub. 517 for
more information.
Armed Forces reservist (member of
a reserve component). You are a
member of a reserve component of the
Armed Forces of the United States if you
are in the Army, Naval, Marine Corps, Air
Force, or Coast Guard Reserve, the
Army National Guard of the United
States, the Air National Guard of the
United States, or the Reserve Corps of
the Public Health Service.
If you qualify, include the part of the
line 6 amount attributable to the
expenses for travel more than 100 miles
away from home in connection with your
performance of services as a member of
the reserves on Form 1040, line 24, and
attach Form 2106-EZ to your return.
These reservist-related travel expenses
are deductible whether or not you
itemize deductions. Enter the remaining
expenses from line 6 on Schedule A
(Form 1040), line 21. See Pub. 463 for
more information.
Fee-basis state or local government
official. You are a qualifying fee-basis
official if you are employed by a state or
political subdivision of a state and are
compensated, in whole or part, on a fee
basis.
If you qualify, include the part of the
line 6 amount attributable to expenses
you incurred for services performed in
that job in the total on Form 1040, line
24, and attach Form 2106-EZ to your
return. These employee business
expenses are deductible whether or not
you itemize deductions. Enter the
remaining expenses from line 6 on
Schedule A (Form 1040), line 21.
Qualified performing artist. You are
a qualified performing artist if you:
1. Performed services in the
performing arts as an employee for at
least two employers during the tax year,
2. Received at least $200 each from
any two of these employers,
3. Had allowable business expenses
attributable to the performing arts of
more than 10% of gross income from
the performing arts, and
4. Had adjusted gross income of
$16,000 or less before deducting
expenses as a performing artist.

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In addition, if you are married, you
must file a joint return unless you lived
apart from your spouse for all of 2007. If
you file a joint return, you must figure
requirements (1), (2), and (3) separately
for both you and your spouse. However,
requirement (4) applies to the combined
adjusted gross income of both you and
your spouse.
If you meet all of the above
requirements, include the part of the line
6 amount attributable to
performing-arts-related expenses in the
total on Form 1040, line 24 (or on Form
1040NR, line 34), and attach Form
2106-EZ to your return. These
performing-arts-related business
expenses are deductible whether or not
you itemize deductions. Enter the
remaining expenses from line 6 on
Schedule A (Form 1040), line 21 (or on
Schedule A (Form 1040NR), line 9).
Disabled employee with
impairment-related work expenses.
Impairment-related work expenses are
the allowable expenses of an individual
with physical or mental disabilities for
attendant care at his or her place of
employment. They also include other
expenses in connection with the place of
employment that enable the employee to
work. See Pub. 463 for details.
If you qualify, enter the part of the line
6 amount attributable to
impairment-related work expenses on
Schedule A (Form 1040), line 28 (or on
Schedule A (Form 1040NR), line 16).
These expenses are not subject to the
2% limit that applies to most other
employee business expenses. Enter the
remaining expenses from line 6 on
Schedule A (Form 1040), line 21 (or on
Schedule A (Form 1040NR), line 9).

Part II—Information on Your
Vehicle
If you claim vehicle expense, you must
provide certain information on the use of
your vehicle by completing Part II.
Include an attachment listing the
information requested in Part II for any
additional vehicles you used for business
during the year.
Line 7. The date placed in service is
generally the date you first start using
your vehicle. However, if you first start
using your vehicle for personal use and
later convert it to business use, the
vehicle is treated as placed in service on
the date you started using it for business.
Line 8a. Do not include commuting
miles on this line; commuting miles are
not considered business miles. See the
definition of commuting under Line 8b.
Line 8b. If you do not know the total
actual miles you used your vehicle for

4

commuting during the year, figure the
amount to enter on line 8b by
multiplying the number of days during
the year that you used your vehicle for
commuting by the average daily
roundtrip commuting distance in miles.
However, if you converted your vehicle
during the year from personal to
business use (or vice versa), enter your
commuting miles only for the period you
drove your vehicle for business.
Generally, commuting is travel
between your home and a work location.
However, travel that meets any of the
following conditions is not commuting.
● You have at least one regular work
location away from your home and the
travel is to a temporary work location in
the same trade or business, regardless
of the distance. Generally, a temporary
work location is one where your
employment is expected to last 1 year or
less. See Pub. 463 for details.
● The travel is to a temporary work
location outside the metropolitan area
where you live and normally work.
● Your home is your principal place of
business under section 280A(c)(1)(A) (for
purposes of deducting expenses for
business use of your home) and the
travel is to another work location in the
same trade or business, regardless of
whether that location is regular or
temporary and regardless of distance.
Paperwork Reduction Act Notice. We
ask for the information on this form to
carry out the Internal Revenue laws of
the United States. You are required to
give us the information. We need it to
ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions must
be retained as long as their contents
may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103.
The average time and expenses
required to complete and file this form
will vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making
this form simpler, we would be happy to
hear from you. See the instructions for
your income tax return.