What this line means
Line 6 minus line 7 in each column. This is the portion of your employee business expenses that your employer did not reimburse. Column A shows unreimbursed non-meal expenses. Column B shows unreimbursed meal expenses. These are the amounts that move forward toward your deduction.
Does this apply to you?
- Your total expenses on line 6 exceeded your employer reimbursements on line 7
- You had business expenses your employer did not reimburse at all
- You are one of the four categories still eligible after the TCJA: Armed Forces reservist, qualified performing artist, fee-basis government official, or employee with impairment-related expenses
Easy to overlook
Most employees cannot use this form at all The Tax Cuts and Jobs Act of 2017 eliminated the miscellaneous itemized deduction for unreimbursed employee expenses through 2025. Before 2018, any employee could deduct unreimbursed expenses on Schedule A subject to a 2% AGI floor. Now only Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses qualify. If you do not fit one of those four groups, your unreimbursed expenses here are zero benefit.1 IRS Form 2106 Instructions — Line 8
Negative amounts mean your reimbursement exceeded expenses If line 7 is larger than line 6 in either column, do not enter a negative number. Enter zero. The excess reimbursement may need to be reported as income — check whether your employer already included it in your W-2. Overpayments under an accountable plan that you did not return are taxable.2 General filing pattern — TCJA eligibility confusion
Watch out for this
Filing Form 2106 when you are not in one of the four eligible categories. This is the most common mistake with this form. A regular W-2 employee who buys work supplies, pays for a home office, or drives for business cannot deduct those costs on Form 2106 after 2017. The TCJA suspension runs through the end of 2025. Filing the form incorrectly triggers IRS notices and disallowed deductions.
Footnotes
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IRS Form 2106 Instructions. https://www.irs.gov/instructions/i2106 ↩
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IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses. https://www.irs.gov/pub/irs-pdf/p463.pdf ↩