Form 2106-EZ: Unreimbursed Employee Business Expenses
Candlefocus EditorIn order to be eligible to complete and submit Form 2106-EZ, the taxpayer must meet the following criteria: total unreimbursed business expenses must not exceed $2,000; the taxpayer must not have any deductible car or truck expenses; the taxpayer must be an employee who has incurred expenses for business purposes only and not for your employer’s convenience; and you, the employee, must have substantiated all of your business expenses.
Submissions on Form 2106-EZ must include the following information: the timeframe of business activities, total number of entries reflecting a tally of expenses, a summary of expenses incurred and any other required information requested. Once the total unreimbursed business expenses exceed $2,000 and/or the taxpayer has any deductible car or truck expenses, the taxpayer must complete and submit IRS Form 2106 instead.
The purpose of the Form 2106-EZ is to report expenses that are due to the fact that the employee has undertaken business-related travel and other activities. These deductions are helpful in creating a larger taxable deduction on the individual’s return. By providing an accurate and detailed report of expenses on Form 2106-EZ, taxpayers can maximize their ability to take a deduction on these non-reimbursed expenses.
Employees should keep quality records of their unreimbursed business expenses. This can include tracking mileage and other expenses in a journal and unsubstantiated entries may not be allowed. By keeping track of all unreimbursed expenses throughout the year, completing Form 2106-EZ is much easier come tax time.
Overall, Form 2106-EZ can save taxpayers money by given them access to larger deductions. Business expenses incurred by employees should be tracked throughout the year, and accurate recordkeeping is necessary for claiming a deduction come tax season.