Form 2106

[childclan]

I have a schedule C business for which I have entered Form 8829 (Expenses for Business Use of Home) and a Car and Truck  Expenses Worksheet.  TurboTax is also generating a form 2106 section, but the Vehicle Expenses Worksheet and Employee Home Office Worksheet that are subsets of that section are largely blank (the Vehicle one is entirely blank aside from our names and activity and the Home Office one has some info in parts I and II, but expenses for part III lines 20-32 are blank/did not carry over.  Carry over info for part III are filled in, as are sections IV and V).  How do I know if form 2106 is necessary and if yes, how do I get the fields to fill in to match what's in the Schedule C?  As an aside, what drew me to form 2106 was an error that was detected in that Part III, line 12 (% of wages from business use of the home) of the Employee Home Office Worksheet was missing a value.  I manually entered a value, making it the same % as the % of business conducted in the home office from schedule C.  Wages on line 11 are 0 so the % is irrelevant, but please indicate if I am correct in entering that value.  Similarly, is line 11 a value of 0 because all of my schedule C income is 1099-NEC versus W2 wages?

[FangxiaL]

If you have schedule C business income, you deduct home office and auto expenses from your self-employment income. These expenses are not transferred to Form 2106, which is for unreimbursed employee expenses. 

Job-related expenses for employees are no longer deductible on most people's federal returns in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA). However, the deduction of job-related expenses is still available to people who work in one of these specific professions or situations:

• Armed Forces reservist
• Qualified performing artist
• Fee-basis state or local government official
• You]'re disabled and have impairment-related expenses

If these exceptions do not apply to you, you can delete Form 2106 by following these steps:

1. Go to Tax Tools on the left panel with your return open
2. Click Tools to open Tools Center
3. Click Delete a form
4. Click Delete next to Form 2106.

[childclan]

Thank you.  Upon further review before I delete form 2106, I noticed that line C from the 2106 Part I Smart Worksheet doesn't have box 2 (qualified performing artist) checked, but rather box 5 (misc 2% itemized deduction - state only) checked.  Am I still ok to delete this form?

[AnnetteB6]

Yes, you can delete the form if you are deducting expenses for a Schedule C business and not trying to deduct expenses related to a W-2 job.  

Form 2106 is only used when deducting expenses related to being an employee with income from a W-2.  As of the current tax year, there are only a few exceptions that can use Form 2106 for their Federal return or for the state return only.  

@childclan