Form 2106-EZ 2017: Affordable Guide to Unreimbursed Employee Business Expense Deductions

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Understanding Form 2106-EZ: A Snapshot of Unreimbursed Employee Business Expenses

Form 2106-EZ was a streamlined tax document provided by the IRS, designed for employees to claim deductions on ordinary and necessary job-related expenses that their employers did not reimburse.

Following the enactment of the Tax Cuts and Jobs Act (TCJA) in 2017, most deductions for unreimbursed employee expenses were eliminated, leading to the discontinuation of Form 2106-EZ after the 2017 tax year.

Important Note

While Form 2106-EZ is no longer in use, the full Form 2106 remains accessible for select groups such as Armed Forces reservists, performing artists, fee-based state and local government officials, and employees with impairment-related work costs.

Key Highlights

• Form 2106-EZ enabled employees to deduct expenses like meals, lodging, airfare, and vehicle costs related to their jobs.
• The form was phased out due to tax reforms under the TCJA.
• Form 2106 is still available but only applicable to certain professions.

Who Was Eligible to File Form 2106-EZ?

Ordinary expenses are those commonly accepted in a profession, while necessary expenses are essential for conducting business activities.

Form 2106-EZ served as a simplified alternative to Form 2106, allowing employees to deduct unreimbursed business expenses such as travel costs. To qualify, expenses had to be unreimbursed by the employer. The form also permitted claiming the standard mileage rate for vehicle use.

Quick Fact

Form 2106-EZ was valid only through the 2017 tax year due to the TCJA's repeal of unreimbursed employee expense deductions.

How to Complete Form 2106-EZ

The form contained two sections. Part I summarized all employee business expenses and determined deductible amounts. Part II focused on vehicle-related expenses.

In Part I, employees listed unreimbursed expenses such as airfare, lodging, parking, tolls, and car rentals, including personal vehicle expenses from Part II. Incidental expenses like valet tips were deductible despite often lacking receipts. Meals and entertainment costs were reported separately, with most taxpayers limited to a 50% deduction.

Alternatively, taxpayers could use General Services Administration (GSA) per diem rates for U.S. cities or State Department rates for international travel to calculate overnight expenses. These rates fluctuate based on location and season. For example, Aspen, Colorado, had a lodging per diem of $407 in February 2025 but only $207 in September, with a meal per diem of $92.

Quick Fact

While Form 2106-EZ is retired, Form 2106 remains downloadable from the IRS website.

When Vehicle Expenses Remain Deductible

Part II addressed personal vehicle expenses, which required using the IRS standard mileage rate—multiplying the mileage rate by business miles driven. This rate covers fuel, repairs, and wear and tear.

Self-employed taxpayers can still deduct vehicle use for business purposes. The mileage rate for 2025 is $0.70 per mile, up from $0.67 in 2024.

Additionally, deductions are available for vehicle use related to charitable and medical activities. Job relocation vehicle expense deductions are now limited to active military members.

Types of Expenses Covered by Form 2106-EZ

Eligible expenses included meals, lodging, transportation, and vehicle costs directly tied to job duties. The form allowed deductions for incidental expenses like tips and generally capped meal and entertainment deductions at 50%.

Can Employees Still Deduct Unreimbursed Business Expenses?

After the 2017 TCJA, most employees cannot deduct unreimbursed business expenses. Exceptions exist for specific groups such as Armed Forces reservists, performing artists, and fee-based government officials, who may use Form 2106.

Why Was Form 2106-EZ Discontinued?

Form 2106-EZ was discontinued following the 2017 Tax Cuts and Jobs Act reforms. The IRS now requires eligible employees in select professions to file the more comprehensive Form 2106.

Summary

Form 2106-EZ provided a simplified way for employees to deduct certain unreimbursed business expenses before its discontinuation in 2018. Currently, only a limited number of taxpayers qualify to use Form 2106 for such deductions.

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