Form 2106, Employee Business Expenses, can now only be used by four groups: Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. Every other employee can't deduct unreimbursed job expenses on it, because miscellaneous itemized deductions subject to the 2% floor were eliminated for tax years beginning after 2017.
That's the single most useful thing to know about this form: most people searching for it can't use it. Everything below comes from the IRS Instructions for Form 2106 (2025), checked in October 2026.
The four groups who can still use it
| Group | Where the deduction goes | Need to itemize? |
|---|---|---|
| Armed Forces reservist (travel more than 100 miles from home for reserve duty) | Schedule 1 (Form 1040), line 12 | No |
| Qualified performing artist | Schedule 1 (Form 1040), line 12 | No |
| Fee-basis state or local government official | Schedule 1 (Form 1040), line 12 | No |
| Employee with impairment-related work expenses | Schedule A (Form 1040), line 16 | Yes |
Who counts as a qualified performing artist
All four tests have to be met, as of October 2026:
- You performed in the performing arts as an employee for at least two employers during the year.
- At least two of those employers paid you wages of $200 or more each.
- Your performing-arts business expenses were more than 10% of your gross income from the performing arts.
- Your adjusted gross income was $16,000 or less before deducting those expenses.
If you're married you must file jointly, unless you lived apart for all of 2025. On a joint return, the first three tests are applied to each spouse separately, but the $16,000 limit applies to your combined adjusted gross income. That last rule rules out most working actors with a working spouse.
The other three groups
- Armed Forces reservists: members of the reserve components, including the Army, Navy, Marine Corps, Air Force or Coast Guard Reserve, the National Guard and the Reserve Corps of the Public Health Service, can deduct travel more than 100 miles from home for reserve service. The deduction is limited to the federal per diem rate for lodging, meals and incidentals and the standard mileage rate for car costs, plus parking, ferry fees and tolls.
- Fee-basis officials: people employed by a state or political subdivision and paid in whole or part on a fee basis.
- Impairment-related work expenses: costs for attendant care at the place of work and other expenses connected with the workplace that let a person with a physical or mental disability work. These go on Schedule A rather than Schedule 1.
The 2025 vehicle numbers on the form
| Item | 2025 figure, as of October 2026 |
|---|---|
| Standard mileage rate for business use | 70 cents a mile |
| Section 179 overall limit | $2,500,000, reduced once section 179 property placed in service passes $4,000,000 |
| Section 179 limit for an SUV | $31,300 |
| First-year depreciation cap, passenger car with bonus depreciation | $20,200 |
| Later years | $19,600, then $11,800, then $7,060 a year |
You can only use the standard mileage rate for 2025 in certain cases, for example if you used it in the first year the vehicle was used for business. If you used the actual expense method in that first year, or a depreciation method other than straight line in an earlier year, the IRS flowchart sends you to file Form 2106.
Travel, meals and commuting on the form
- Commuting to and from work isn't deductible, even for the four groups.
- Line 3 is for lodging and transportation on overnight travel away from your tax home, which is generally your regular or main place of business or post of duty, wherever your family lives.
- Meals go on line 5. Instead of actual costs, you may be able to use the federal standard meal allowance for overnight travel, but you still need records of the time, place and business purpose of each trip.
- If you have no regular place of business and nowhere you regularly live, the instructions treat you as an itinerant, whose tax home is wherever they work, so travel expenses can't be claimed.
What if you're not in one of the four groups?
If your employer pays you more than your expenses under a nonaccountable plan and you're not in one of the four groups, the instructions say the excess should be included as wages on your Form W-2 and your return. You can't use Form 2106 to offset it.
If you're self-employed rather than an employee, your work costs are business expenses on Schedule C, not Form 2106. And vehicle depreciation for a business is figured on Form 4562.
How to complete it if you qualify
- Follow the flowchart at the start of the instructions to confirm you must file.
- Part I: list vehicle, parking, tolls, travel, other business expenses and meals, then the reimbursements your employer didn't include in box 1 of your W-2.
- Part II: vehicle expenses, using either the standard mileage rate or actual costs.
- Carry the line 10 amount to Schedule 1, line 12, or to Schedule A, line 16, depending on your group.
- Attach Form 2106 to your return.
The verdict
Before you spend time on Form 2106, check the four groups. If you're an ordinary employee with unreimbursed costs, the answer for 2025 is that federal law doesn't let you deduct them, and the better move is asking your employer to reimburse you under an accountable plan. If you're a reservist, a qualifying performing artist, a fee-basis official or have impairment-related costs, file it, because three of those four deductions don't require you to itemize.
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Frequently asked questions
Who can use Form 2106 for 2025?
Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.
Can regular employees deduct unreimbursed work expenses?
No. The instructions say employees outside the four listed groups can't use Form 2106 because miscellaneous itemized deductions subject to the 2% floor were eliminated after 2017.
What is the 2025 standard mileage rate on Form 2106?
70 cents a mile for business use of your vehicle.
What is the income limit for a qualified performing artist?
Adjusted gross income of $16,000 or less before deducting performing-arts expenses, combined for both spouses on a joint return.
Do reservists need to itemize to deduct travel expenses?
No. Reserve travel more than 100 miles from home goes on Schedule 1 (Form 1040), line 12, whether or not you itemize.
Where do impairment-related work expenses go?
On Schedule A (Form 1040), line 16, so they're claimed as an itemized deduction.
