how to file form 2106
there are two parts to form 2106 part i tabulates all employee business expenses and reimbursements this part then calculates whether and which expenses were eligible for a tax deduction these include vehicle expenses parking toll transportation charges and other business expenses the filer also includes any reimbursements made by the employer part ii deals more specifically with vehicle expenses filers have two choices they can use the standard mileage rate which means multiplying the irs mileage rate for the tax year by the number of business qualifying miles driven the mileage rate factors in gasoline and repair expenses plus wear and tear on the average car for 2024 it is set at 67 cents per mile up from 65 5 cents in 2023 3the second method is to calculate actual expenses these include gasoline oil repairs insurance registration and depreciation which is factored with the use of a table in the instructions you are not able to deduct interest on car loans there are also limits on car valuations whether you used standard mileage or actual expenses expenses incurred commuting to and from work are not considered eligible business expenses 