The Tax Cuts and Jobs Act suspended all miscellaneous itemized deductions subject to the 2% of adjusted gross income floor. This change affects un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel. Review Notice 2018-42 for more information.

Certain taxpayers whose un-reimbursed expenses would flow to Schedule 1, line 24 are still able to take this deduction. At the top of screen 2106 select the applicable check box.

• Qualified performing artist

• Fee-based state or local government official

• Impairment related work expenses

• Armed forces reservist

Certain taxpayers may take mileage (which includes a factor for depreciation) or actual expenses (such as oil and gas) along with depreciation. Taxpayers may not take both mileage and depreciation since the mileage calculation includes depreciation.

Meals/entertainment expenses are only allowed at 50% except for taxpayers subject to DOT rules, in which case they are allowed 80% for meals. If the taxpayer is subject to DOT rules, enter the total meals/entertainment expense in the first field on Line 5b of the 2106 screen and in the second field enter the amount of that expense that is attributable to DOT hours of service rules for meals (for example, 5000 was spent and 4000 was subject to DOT rules).

Section D

Section D of Form 2106 reports the depreciation of vehicles. To move an asset to Section D, select V, E, T, H, or N as the Listed Property Type on the 4562 screen for that asset.

When screen 4562 is directed to Form 2106:

• Form 4562 is not needed and does not generate.

• If mileage is used on Form 2106, it already includes a depreciation component.

• If actual expenses are more favorable to the taxpayer than mileage or if actual expenses are forced on screen 2106, depreciation from screen 4562 is reported on Form 2106, even though Form 4562 is not produced in View/Print mode.

8829 to Form 2106

To get amounts to carry from screen 8829 to Form 2106,

1. Go to the 2106 screen in data entry, choose either T or S code.

2. Select one of the following, if applicable:

   • Qualified performing artist

   • Fee-based state or local government official

   • Impairment related work expenses

   • Armed forces reservist

3. On the 8829 screen, select 2106 in the FOR field and enter the appropriate code in the multi-form code field.

EF Message 5132

​Per IRS instruction, in order for a performing artist to qualify to take a 2106 deduction, the taxpayers AGI must be below $16,000 before 2106 expenses are taken into consideration. See:

• Publication 463

• Form 2106 Instructions

EF Message 5183

You cannot e-file a return containing more than two Forms 2106 for the same individual. Such returns must be paper-filed.