Form 2106-EZ: Unreimbursed Employee Business Expenses—Overview

What Was Form 2106-EZ: Unreimbursed Employee Business Expenses?

Form 2106-EZ: Unreimbursed Employee Business Expenses was a tax form issued by the Internal Revenue Service (IRS) used by employees to deduct ordinary and necessary expenses related to their jobs

The Tax Cuts and Jobs Act (TCJA) eliminated virtually all of the deductions for unreimbursed employee expenses for most taxpayers. As a result, Form 2106-EZ: Unreimbursed Employee Business Expenses was no longer in use after the 2017 tax year.

Who Could File Form 2106-EZ?

Ordinary expenses are those that are common and accepted in a specific line of work, while necessary expenses are essential for conducting business.

Form 2106-EZ was a simplified version of Form 2106. Employees used it to claim tax deductions for unreimbursed expenses related to their jobs, such as business travel costs. To qualify, the expense needed to be unreimbursed by the employer. Employees who used this form were able to claim the standard mileage rate for vehicle expenses.

How to File Form 2106-EZ

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.

In 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. 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. 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 $407 in Aspen, Colorado, during February 2025, but only $207 in September. The per diem meal rate for Aspen was listed as $92 for 2025.

When Vehicle Expenses Are Still Deductible

Part 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 2025 tax year, the rate is set at $0.70 cents per mile. For the 2024 tax year, it was $0.67 cents.

Taxpayers 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.

The Bottom Line

Form 2106-EZ allowed employees to deduct several job-related expenses, but it was discontinued after 2018 due to tax reforms. If you were eligible for deductions, this simplified form made it easier to claim business expenses. Today, only a few specific groups can still use Form 2106 to claim business expense deductions.