Instructions for Form 2106, Employee Business Expenses
| Legal Form Number | 2106 |
| Year | 2023 |
| Issuer | Treasury Department |
| Section | Treasury Department |
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2023
Instructions for Form 2106
Employee Business Expenses
Department of the Treasury
Internal Revenue Service
Section references are to the Internal Revenue Code
unless otherwise noted.
Future Developments
See IRS.gov/Form2106 for the latest developments
related to Form 2106 and its instructions.
What's New
Standard mileage rate. The 2023 per mile rate for
business use of your vehicle is 65.5 cents (0.655).
Depreciation limits on vehicles. The depreciation limits
apply under section 179 and section 280F.
Under section 179. For tax years beginning in 2023,
the aggregate cost of any section 179 property that a
taxpayer elects to treat as an expense cannot exceed
$1,160,000. The $1,160,000 limitation is reduced (but not
below zero) by the amount by which the cost of section
179 property placed in service during the 2023 tax year
exceeds $2,890,000. The cost of any sport utility vehicle
(SUV) that may be taken into account under section 179
cannot exceed $28,900. (See Rev. Proc. 2022-38.)
A vehicle subject to section 280F(a) is not considered
an SUV under section 179. (See section 179.)
A deduction allowed under section 179 may be subject
to the limitations of section 280F. (See section 280F.)
Under section 280F. The depreciation limitations for
passenger automobiles acquired after September 27,
2017, and placed in service during calendar year 2023, for
which the section 168(k) additional first-year depreciation
deduction applies, is $20,200 for the 1st tax year, $19,500
for the 2nd tax year, $11,700 for the 3rd tax year, and
$6,960 for each succeeding year.
The depreciation limitations for passenger automobiles
placed in service during calendar year 2023 for which no
section 168(k) additional first-year depreciation deduction
applies is $12,200 for the 1st tax year, $19,500 for the 2nd
tax year, $11,700 for the 3rd tax year, and $6,960 for each
succeeding year. (See Rev. Proc. 2023-14.)
Note. The section 168(k) additional first-year
depreciation deduction is sometimes called special
depreciation allowance.
General Instructions
Purpose of Form
Use Form 2106 if you were an Armed Forces reservist, a
qualified performing artist, a fee-basis state or local
government official, or an employee with
impairment-related work expenses. Employees who do
not fit into one of the listed categories may not use the
Form 2106 due to the suspension of miscellaneous
itemized deductions subject to the 2% floor under section
67(a). Section 67(g) suspends miscellaneous itemized
deductions for tax years beginning after December 31,
2017, and before January 1, 2026. See the flowchart in
these instructions to find out if you must file this form.
Excess reimbursements. If you are not a member of
the Armed Forces reserves, a qualified performing artist, a
fee-basis state or local government official, or an
employee with impairment-related work expenses, and
receive reimbursements in excess of your expenses from
your employer’s nonaccountable plan, the excess
Who Must File Form 2106
No
Don’t le Form 2106 (see Notes below).
Did you have job-related business expenses?B
Were you reimbursed for any of your business
expenses (count only reimbursements your employer
didn’t include in box 1 of your Form W-2)?
C
File Form 2106.
F
File Form 2106 (see
Notes below).
Notes
• Armed Forces reservists, qualied performing artists,
fee-basis state or local government ofcials, and
individuals with disabilities should see the instructions
for line 10 to nd out where to deduct employee
expenses.
• Form 2106 may be used only by Armed Forces
reservists, qualied performing artists, fee-basis
state or local government ofcials, and employees
with impairment-related work expenses because of
the suspension of miscellaneous itemized
deductions subject to the 2% oor under section
67(a) by section 67(g).
Yes
No
Did you use a vehicle in your job during the
tax year that you also used for business in a
prior year?
Is either (1) or (2) true?
1. You owned this vehicle and used the actual
expense method in the rst year you used the
vehicle for business.
2. You used a depreciation method other than
straight line for this vehicle in a prior year.
E
G
Yes
No
No
Don’t le Form 2106.
Are you claiming job-related vehicle,
travel, transportation, meals, or
entertainment expenses?
D
Yes
Yes
File Form 2106.
Yes
Yes
Yes
No
No
AWere you employed during the tax year as an Armed
Forces reservist, a qualied performing artist, a fee-basis
state or local government ofcial, or an individual with a
disability claiming impairment-related work expenses?
See the line 10 instructions for denitions.
Are your deductible expenses more than your
reimbursements (count only reimbursements your
employer didn’t include in box 1 of your Form W-2)?
For rules covering employer reporting of reimbursed
expenses, see the instructions for line 7.
Don’t le Form 2106.
No
Don’t le Form 2106.
Jan 26, 2024 Cat. No. 64188V
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