Form 2106-EZ, also known as the Unreimbursed Employee Business Expenses, is a tax form used by individuals to claim deductions for expenses related to their job that are not reimbursed by their employer. Here are some relevant points about the purpose of Form 2106-EZ:
1. Tax Deduction: The primary purpose of Form 2106-EZ is to help taxpayers claim deductions for various job-related expenses they incurred while performing their duties. These deductions can help reduce their taxable income, potentially resulting in a lower tax liability.
2. Employees Only: This form is specifically designed for employees who are not self-employed. If you are a self-employed individual, you would need to use a different form, such as Schedule C, to report your business expenses.
3. Qualifying Expenses: Form 2106-EZ allows taxpayers to deduct expenses that are considered ordinary and necessary for carrying out their job responsibilities. This includes expenses such as work-related travel, transportation, meals (under certain circumstances), supplies, tolls, parking fees, and others.
4. Employer Reimbursement: It is important to note that only expenses that were not reimbursed by the employer are eligible for deduction. If you were reimbursed in any way for an expense, you cannot claim it as a deduction on Form 2106-EZ.
5. Limitations: While many eligible expenses can be claimed on Form 2106-EZ, some limitations apply. For example, expenses related to commuting between your home and regular workplace cannot be deducted. Additionally, if you were reimbursed for any expenses under an accountable plan, you would not be able to claim those on the form.
6. Simplified Version: Form 2106-EZ is the streamlined version of the original Form 2106, created to simplify the reporting process for taxpayers with fewer expenses. It reduces the number of categories and calculations required, making it easier to complete and file.
7. Supporting Documentation: When filing Form 2106-EZ, it is crucial to maintain accurate records and receipts for all claimed expenses. While the form does not need to be submitted with your tax return, you must keep it and the supporting documents for at least three years in case of an audit.
Remember, it's important to consult with a tax professional or refer to the official IRS guidelines for specific details and instructions related to your situation when filling out Form 2106-EZ.