Who Must File Form 2106

Who Must File Form 2106

Summary: This flowchart is for determining if a taxpayer must file Form 2106 to claim ordinary and necessary business expenses.

Start

This is the start of the flowchart.

Decision (1)

A. Were you employed as an Armed Forces reservist, a qualified performing artist, a fee-basis state or local government official, or an individual with a disability claiming impairment-related work expenses? See the line 10 instructions for definitions.

IF Yes Continue To Decision (2)
IF No Continue To Process (a)

Process (a)

Don’t file Form 2106 (see Notes below).

Continue To End

Decision (2)

B. Did you have job-related business expenses?

IF Yes Continue To Decision (3)
IF No Continue To Process (b)

Process (b)

Don’t file Form 2106.

Continue To End

Decision (3)

C. Were you reimbursed for any of your business expenses (count only reimbursements your employer didn’t include in box 1 of your Form W-2)?

IF Yes Continue To Decision (6)
IF No Continue To Decision (4)

Decision (4)

D. Are you claiming job-related vehicle, travel, transportation, meals, or entertainment expenses?

IF Yes Continue To Process (c)
IF No Continue To Process (d)

Process (c)

File Form 2106 (see Notes below).

Notes

  • Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and individuals with disabilities should see the instructions for line 10 to find out where to deduct employee expenses.

  • Form 2106 may be used only by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses because of the suspension of miscellaneous itemized deductions subject to the 2% floor under section 67(a) by P.L. 115-97, section 11045.

Continue To End

Process (d)

Don’t file Form 2106.

Continue To End

Decision (5)

E. Did you use a vehicle in your job in 2020 that you also used for business in a prior year?

IF Yes Continue To Decision (7)
IF No Continue To Decision (6)

Decision (6)

F. Are your deductible expenses more than your reimbursements (count only reimbursements your employer didn’t include in box 1 of your Form W-2)? For rules covering employer reporting of reimbursed expenses, see the instructions for line 7.

IF Yes Continue To Process(e)
IF Yes Continue To Process(f)

Process (e)

File Form 2106.

Continue To End

Process (f)

Don’t file Form 2106.

Continue To End

Decision (7)

G. Is either 1 or 2 true?

  1. 1. You owned this vehicle and used the actual expense method in the first year you used the vehicle for business.

  2. 2. You used a depreciation method other than straight line for this vehicle in a prior year.

IF Yes Continue To Process (g)
IF No Continue To Decision (7)

Process (g)

File Form 2106.

Continue To End

Decision (7)

H. Are your deductible expenses more than your reimbursements (count only reimbursements your employer did not include in box 1 of your Form W-2)? For rules covering employer reporting of reimbursed expenses, see the instructions for line 7.

IF Yes Continue To Process (e)
IF No Continue To Process (f)

End

This is the ending of the flowchart.