Interactive Guide to Form 2106 Tax Benefits

Interactive Guide to Form 2106: Employee Business Expenses

Form 2106 Interactive Guide

An easy-to-use tool to help you understand and maximize your employee business expense deductions for 2024.

Step 1: Check Your Eligibility

Due to tax law changes, only certain employees can currently deduct job-related expenses. Answer the questions below to see if you qualify.

Are you in one of the following professions?

  • Armed Forces Reservist
  • Qualified Performing Artist
  • Fee-Basis State or Local Government Official
  • An individual with a disability claiming impairment-related work expenses

Did you have job-related business expenses that were not reimbursed by your employer?

Deduction Explorer

Explore the key categories of deductible expenses.

Vehicle Expense Calculator

Your vehicle is often a significant source of deductions. Use this tool to compare the two official methods—Standard Mileage and Actual Expenses—and see which benefits you more.

Standard Mileage Actual Expenses

Calculate Your Standard Rate Deduction

Enter your total business miles for the year.

Your Deduction:

$0.00

Based on the 2024 rate of 67¢ per mile.

Additional Deductions

With the standard mileage rate, you can still deduct these costs separately:

  • ✔️ Parking Fees & Tolls: Any fees incurred during business-related driving.
  • ✔️ Interest on Car Loan: If you are self-employed (Note: Employees generally cannot deduct this).
  • ✔️ Personal Property Taxes: State and local taxes paid on the vehicle.

Track Actual Vehicle Costs

Enter the total amounts for each category. Your business use percentage will be applied to determine your deduction.


Vehicle Depreciation Visualizer

This powerful benefit allows you to recover your vehicle's cost over time. Select your vehicle's details to see the maximum potential deductions for 2024 and beyond.

Travel Expenses (Away From Home)

When your work requires you to be away from your main place of business (your tax home) overnight, you can deduct several costs. Remember, you must keep records to prove the time, place, and business purpose of your travel.

Lodging & Transportation

  • 🏨The full cost of hotels, motels, or other accommodations.
  • ✈️Airfare, train tickets, bus fares, or the cost of driving your car.
  • 🚕The cost of taxis or other transportation between the airport/station, your hotel, and your work location.

Incidental Expenses

You can deduct fees and tips given to porters, baggage carriers, and hotel staff.

You have two options:

  • Actual Costs: Track every tip and fee you pay.
  • Optional Method: Deduct a flat $5 per day. This is simpler but can only be used if you are not claiming any meal expenses.

Meal Expenses

You can deduct the cost of business-related meals, whether you are traveling or meeting with clients locally. This deduction has specific limits.

50%

Deduction Limit

Generally, you can only deduct 50% of the actual cost of your business meals.

Standard Meal Allowance (M&IE)

To simplify record-keeping while traveling, you can use a standard daily allowance for Meals & Incidental Expenses (M&IE) instead of tracking actual costs.

The rate varies by location. You can find the official rates on the GSA Per Diem Rates website.

Note: You must still keep records of the time, place, and business purpose of your travel.

Other Business Expenses

Don't forget to deduct other ordinary and necessary expenses related to your job.

  • Business Gifts

    Limited to $25 per person, per year.

  • Work-Related Education

    Costs for tuition, fees, and books for education that maintains or improves your job skills.

  • Trade Publications

    The cost of subscriptions to professional journals and trade publications related to your industry.

  • Tools & Supplies

    The cost of any tools and materials used in your work.

COCOMOCPA

Financial Controller / CPA

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