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Frequently Asked Questions

Unreimbursed Employee Business Expenses - Form 2106-EZ

Form 2106-EZ is for employees to deduct ordinary and necessary work expenses for which they were not reimbursed by their employer.

An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. Note than an expense does not necessarily have to be required in order to be considered necessary by the IRS.

The major difference between Form 2106-EZ and the regular Form 2106 is that the latter is for expenses reimbursed by your employer. Form 2106-EZ is only for expenses that were not reimbursed. To see if you qualify, refer to the flowchart in the Instructions for Form 2106.

In order to deduct expenses for travel, entertainment, gifts, or the use of a car or other listed property, you must keep records that indicate the amount, time, place, business purpose, and business relationship (for entertainment and gifts). You must also save receipts for lodging expenses and any other expense in excess of $75.