What Is Form 2106-EZ?

Form 2106-EZ, titled Unreimbursed Employee Business Expenses, was a simplified version of IRS Form 2106 that allowed eligible employees to deduct certain ordinary and necessary work-related expenses not reimbursed by their employer. This form was used prior to tax year 2018 but is no longer in use following tax law changes introduced by the Tax Cuts and Jobs Act (TCJA). While the form is now obsolete for most taxpayers, it remains a point of interest for understanding historical deductions and for those filing amended returns for years before 2018.

Purpose of the Form

The primary purpose of Form 2106-EZ was to help qualified employees claim a tax deduction for unreimbursed business expenses related to their job. These expenses needed to be directly related to the employee's duties and considered both ordinary (common in the profession) and necessary (appropriate and helpful to perform the job). Examples included travel, meals (subject to limits), tools, professional dues, and uniforms.

Unlike the longer Form 2106, Form 2106-EZ offered a streamlined format for taxpayers who did not receive reimbursement from their employer under an accountable plan and who did not claim expenses for vehicles, depreciation, or meals while away from home overnight.

Eligibility Requirements

Not all employees qualified to use Form 2106-EZ. The IRS imposed specific conditions to prevent misuse and to ensure only eligible taxpayers took advantage of the simplified form. To file Form 2106-EZ, the taxpayer had to meet all of the following criteria:

• Be an employee (not self-employed).
• Have job-related expenses that were not reimbursed.
• Not claim vehicle expenses other than those calculated using the standard mileage rate.
• Not claim travel expenses for meals or lodging.
• Not claim depreciation or amortization on work-related property.
• Not receive any reimbursement or only receive reimbursement that was included in taxable income.

These restrictions made the form particularly useful for certain professions where unreimbursed expenses were common but relatively straightforward, such as teachers, salespeople, and traveling employees.

Deduction Mechanics

The amount calculated using Form 2106-EZ was reported on Schedule A of Form 1040 under the category of miscellaneous itemized deductions. However, these deductions were subject to a 2% adjusted gross income (AGI) floor. This meant that only the portion of unreimbursed expenses exceeding 2% of the taxpayer’s AGI could be deducted.

For example, a taxpayer with an AGI of $60,000 could only deduct unreimbursed employee business expenses to the extent that they exceeded $1,200 (2% of $60,000). If eligible expenses totaled $1,500, the allowable deduction would be $300.

Because of this threshold and the requirement to itemize, not all taxpayers who incurred unreimbursed expenses found it beneficial to use the form, especially if they took the standard deduction instead.

Impact of Tax Reform

Form 2106-EZ was discontinued beginning with tax year 2018. This change was a direct result of the Tax Cuts and Jobs Act, which suspended the deduction for unreimbursed employee business expenses for most employees through at least 2025. As a result, the IRS removed the form from its lineup of available tax forms.

However, exceptions still exist. Certain categories of employees, such as Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses, may still deduct unreimbursed expenses using the full Form 2106, but not the simplified EZ version.

Amended Returns and Historical Use

While no longer part of current tax filings, Form 2106-EZ may still be relevant for individuals who need to file an amended return for a tax year prior to 2018. In such cases, taxpayers must ensure they meet the original eligibility criteria and maintain proper documentation for any expenses claimed.

Additionally, understanding the previous availability of this deduction can help clarify how changes in tax law have affected employees who historically bore significant job-related costs. Before 2018, many workers depended on this deduction to reduce taxable income, especially in industries where employers shifted costs onto employees.

The Bottom Line

Form 2106-EZ was a simplified IRS form used by employees to deduct ordinary and necessary job-related expenses that were not reimbursed by their employers. It was only available to those who met strict eligibility rules and who did not claim complex deductions related to vehicle use, depreciation, or meals. Following the enactment of the Tax Cuts and Jobs Act, the form was discontinued for tax years beginning in 2018. While now obsolete, it remains relevant for taxpayers amending older returns and for understanding how employee expense deductions have evolved under recent tax law changes.