how to file form 2106 ez unreimbursed employee business expenses
the form was divided into two parts part i tabulated all employee business expenses then calculated whether and which expenses were eligible for a tax deduction part ii more specifically addressed vehicle expenses 3in part i employees were required to list all unreimbursed business expenses such as airfare lodging parking tolls and car rental as well as any personal vehicle expenses from part ii so called incidental expenses allowed a deduction for valet tips and other small cash transactions that don t typically generate a receipt meals and entertainment were added separately because most taxpayers were only allowed to claim 50 of those expenses another way to calculate overnight expenses was to use the general services administration gsa per diem rates for cities around the u s or for foreign travel the state department rates for every country 45 lodging rates could vary considerably by month based on supply and demand in any given locality for example the gsa would allow a per diem lodging rate of 361 in aspen colorado during january 2020 but only 185 in september the per diem meal rate for aspen was listed as 76 for 2020 6part ii addressed personal vehicle expenses which must be claimed using the standard mileage rate this entailed 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 the tax code still permits self employed taxpayers to deduct the use of a personal vehicle for work related purposes for the 2020 tax year the rate was set at 57 5 cents per mile for the 2021 tax year it dropped to 56 cents 7taxpayers also may still deduct expenses for use of their vehicles for charitable purposes and medical purposes the deduction for personal vehicle use to relocate for a job is now restricted to active military personnel download form 2106 ez unreimbursed employee business expensesform 2106 can be downloaded on the irs website 2form 2106 ez is still accessible but is no longer in use 3