For most taxpayers, the answer won't affect their federal tax return.
The Tax Cuts and Jobs Act (TCJA) suspended the deduction for most unreimbursed employee business expenses, and subsequent legislation permanently extended that suspension for most employees. As a result, W-2 employees generally can't deduct work-related travel expenses they paid out of pocket.
However, a limited group of taxpayers may still qualify to claim these expenses using Form 2106, Employee Business Expenses.
Who Can Still Use Form 2106?
You may qualify to deduct unreimbursed travel and job-related expenses if you're:
- An Armed Forces reservist
- A qualified performing artist
- A fee-basis state or local government official
- An employee with impairment-related work expenses
If you don't fall into one of these categories, unreimbursed employee travel expenses generally aren't deductible on your federal return.
What Expenses Can Be Deducted?
If you're eligible to use Form 2106, you may be able to deduct certain ordinary and necessary business expenses that weren't reimbursed by your employer.
Examples include:
- Business vehicle expenses
- Parking fees and tolls
- Bus, train, taxi, rideshare, and other transportation costs related to work
- Travel expenses while away from your tax home for business purposes
- Job-related supplies and business expenses
- Business meals that meet IRS requirements
Keep in mind that personal expenses and commuting costs are not deductible.
Vehicle Expenses
You may be able to deduct qualified business mileage using the IRS standard mileage rate or, if eligible, the business portion of your actual vehicle expenses.
Qualifying mileage generally includes driving:
- Between work locations
- To meet clients or customers
- To attend business meetings
- To perform job-related errands
The daily commute between your home and regular workplace isn't deductible.
Travel Away From Home
Travel expenses may qualify if you're required to travel away from your tax home for work and need sleep or rest before returning.
Examples include:
- Airfare
- Lodging
- Baggage fees
- Taxi and rideshare fares
- Related transportation expenses
The trip must serve a legitimate business purpose and not be primarily personal in nature.
Business Meals
Qualified business meals may be deductible, subject to IRS limitations.
Generally, deductible meal expenses include:
- Food and beverages
- Taxes
- Tips
Entertainment expenses remain nondeductible in most situations.
Special Rules for Armed Forces Reservists
If you're a member of the Armed Forces Reserve and travel more than 100 miles from home to perform reserve duties, you may qualify to deduct:
- Lodging expenses
- Meals and incidental expenses using federal per diem rates
- Mileage driven for reserve duties
- Parking fees
- Ferry fees
- Tolls
Special reporting rules apply, and the deduction may be claimed even if you don't itemize deductions.
Special Rules for Qualified Performing Artists and Fee-Basis Officials
If you meet the IRS requirements for a qualified performing artist or fee-basis state or local government official, deductible expenses may include:
- Travel and lodging
- Professional dues
- Required supplies and equipment
- Other ordinary and necessary business expenses related to your occupation
Special Rules for Employees With Impairment-Related Work Expenses
Employees with qualifying disabilities may be able to deduct impairment-related expenses that are necessary to perform their job.
Examples may include:
- Attendant care services needed while working
- Specialized equipment
- Workplace modifications
- Adaptive devices that enable employment
These expenses must be directly related to allowing the employee to work.
What Expenses Can't Be Deducted?
Even if you qualify for Form 2106, some expenses remain nondeductible.
Examples include:
- Commuting between home and work
- Personal travel
- Family travel expenses
- Entertainment expenses
- Reimbursed expenses
- Personal meals not related to business travel
Only unreimbursed expenses connected to your work duties may qualify.