Form 2106

These items are no longer deductible on your federal return.

Employee job related expenses

However, if your state allows you to itemize, you may be able to claim a deduction on the state return. 

Enter all of your information in the federal section to ensure it gets pulled into your state return. 

1. Go to the Federal section of the program
2. Go to Deductions & Credits 
3. Under All breaks, select Employment Expenses 
4. Select Job Expenses for W-2 Income 
5. On the next page, you should see a page titled Review your job-related expenses info.
6. Review your input if needed.

Form expected to be functional about 1/27 or later. 

The 2106 is very limited use for years 2018-2025 at the federal level.

Here’s who qualifies for the employee business expense deduction

Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.

Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses to take the deduction.

If someone falls into one of these employment categories, they are considered a qualified employee:

• Armed Forces reservists
• Qualified performing artists
• Fee-basis state or local government officials
• Employees with impairment-related work expenses

No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.

Here’s what makes something a qualified expense:

• Paid or billed during the tax year
• For carrying on a trade or business of being an employee, and
• Ordinary and necessary

Taxpayers should know there are nondeductible expenses.

There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.

More Information:

IRS updates guidance for deductible business expenses

If a taxpayer owes funds to the IRS from the previous year is that listed or do they have to contact the IRS directly?

If a taxpayer owes funds to the IRS from the previous year is that listed or do they have to contact the IRS directly?