Form 2106 and Employee Business Expenses

Form 2106 lets employees deduct ordinary and/or necessary expenses for their jobs. The IRS defines an ordinary expense as a cost your industry considers typical and accepted. The definition of a necessary expense is an expense that is useful and appropriate for your business.

The IRS allows relatively few types of employees to use Form 2106. Form 2106 is for use by:

  • Armed Forces reservists

  • Certain performing artists

  • Fee-basis government officials

  • Employees with expenses related to an impairment

Expenses for Form 2106 can include transportation, lodging, meals, or entertainment. Employees must have receipts or other records for these expenses.

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