Form 2106 is an Internal Revenue Service (IRS) form used by employees to deduct qualified work-related business expenses that cannot be reimbursed by their employers. Specifically, it is intended for employees who are subject to certain kinds of employment conditions such as Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.

Generally, employees need to use Form 2106 in the following situations:

• If their employer did not, or could not, reimburse them for expenses related to their job. • If their job requires them to travel frequently, go to multiple work locations, use their own car for work, or if they incur other job-related expenses for which their employer does not reimburse them. • If they attended job-related educational seminars or conferences and their employer did not cover the costs. • If they have impairment-related expenses associated with their job and their employer did not cover the cost.

Form 2106 allows employees to deduct eligible business expenses when they file their taxes and to receive a tax credit. Eligible expenses include mileage and gas costs, maintenance and repair costs, deployment and lodging expenses, licensing and annual fees, dinners and entertainment, and certain qualification fees.

To fill out Form 2106, employees will need to provide information about their employer and their job, the total amount of reimbursed expenses they received from their employer (if any), and the amount they spent on work-related expenses. Employees should also keep track of any receipts related to their expenses and include copies of those receipts with their tax filing. The IRS recognizes certain receipts as “evidence” for expenses incurred, and employees should make sure to keep these items with their Form 2106 in case there is an audit.

Using Form 2106 can be helpful for eligible employees, as it allows them to deduct certain expenses directly from their taxes. However, it is important that employees check with their employer and the IRS to make sure they are eligible and that the expenses they are claiming are valid. In addition, employees should make sure to keep accurate records and receipts for their business expenses in order to ensure a smooth and successful filing process.