For the 2026 tax year, most employees cannot deduct unreimbursed job expenses on their federal tax return due to changes made by the Tax Cuts and Jobs Act (TCJA). However, certain taxpayers may still qualify to claim work-related expenses on Form 2106, Employee Business Expenses.
In addition, some states continue to allow a deduction for employee business expenses on a state return, even when no federal deduction is available.
Who Can Use Form 2106?
You may be able to deduct qualifying work-related expenses on Form 2106 if you are one of the following:
- An Armed Forces reservist
- A qualified performing artist
- A fee-basis state or local government official
- An employee with impairment-related work expenses
These are the only categories of employees generally eligible to claim a federal deduction for unreimbursed employee expenses on Form 2106.
Who Cannot Use Form 2106?
If you're a traditional W-2 employee and do not fall into one of the categories listed above, you generally cannot deduct expenses related to your job on your federal return. Common non-deductible employee expenses include:
- Mileage for your regular job duties
- Home office expenses
- Uniforms and work clothing
- Professional dues and subscriptions
- Tools and supplies
- Continuing education and training costs
Although these expenses may be ordinary and necessary for your job, they are generally not deductible on a federal individual income tax return unless you meet one of the special exceptions above.
What If I'm Self-Employed?
If you're self-employed, an independent contractor, or operate your own business, business expenses are generally reported on the appropriate business tax form rather than Form 2106.
For example:
- Sole proprietors and independent contractors typically deduct expenses on Schedule C
- Rental property owners generally report expenses on Schedule E
- Farmers typically report expenses on Schedule F
Eligible business expenses may reduce your taxable business income when properly reported on these schedules.
State Return Considerations
Even if you cannot claim a federal deduction, your state may still allow certain unreimbursed employee business expenses. It is important to review your state's information.
For more information about deductible employee business expenses and Form 2106, see Publication 529, Miscellaneous Deductions and the instructions for Form 2106.