DEFINITION of 'Form 2106: Employee Business Expenses'

A tax form distributed by the Internal Revenue Service (IRS) and used by taxpayers seeking to deduct expenses incurred while conducting business. In order for business expenses to be deducted, they must be considered ordinary and necessary. Ordinary expenses are commonly accepted in the industry; necessary expenses are those that are considered helpful and useful.

BREAKING DOWN 'Form 2106: Employee Business Expenses'

In order for an expense to be considered business-related, the taxpayer must furnish receipts indicating that the expenses were indeed incurred in order to conduct business. Travel expenses, including meals, entertainment and transportation, need to be represented in a receipt.

RELATED TERMS
  1. IRS Publication 535 - Business ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Form 2106-EZ: Unreimbursed Employee ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  3. Business Expenses

    Any expenses incurred in the ordinary course of business. Business ...
  4. Ordinary And Necessary Expenses ...

    Expenses incurred by individuals for their business or primary ...
  5. Expense

    1. The economic costs that a business incurs through its operations ...
  6. Business Interest Expense

    The cost of interest that is charged on business loans used to ...
Related Articles
  1. Small Business

    Writing Off the Expenses of Starting Your Own Business

    Learn how to navigate the complicated rules for writing off the expenses of starting your own business. It could save you a lot of money.
  2. Taxes

    Top Tax Tips to Deduct Investment Management Fees

    Investment expenses can be deducted by those who meet three main criteria. Here's what they are and how they work.
  3. Taxes

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  4. Taxes

    Increase Your Tax Refund With Above-The-Line Deductions

    Find out about these deductions and how you can use them to lower your tax bill.
  5. Personal Finance

    Calculating Interest Expense

    Interest expense is the cost of borrowing money.
  6. Taxes

    An Overview Of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  7. Taxes

    How To Deduct Your Job Search Expenses

    With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ...
  8. Financial Advisor

    How to Deduct Medical Insurance Premiums

    An overview of tax breaks for those who pay medical insurance premiums.
  9. Taxes

    Are Your Job Search Expenses Deductible?

    Looking for a job can be expensive. While some of the costs can be deducted, the IRS will not blindly sign off on them.
  10. Taxes

    How To Qualify For The Home-Office Tax Deduction

    Homebodies can save big on their tax bill. Learn how to get in on the action.
RELATED FAQS
  1. What are the most common business deductions and expenses for small businesses?

    Learn about some of the most common business tax deductions available to small businesses that can reduce net business expenses. Read Answer >>
  2. What are the most common operating expenses for an online business?

    Learn about the common expenses of online businesses and find out about some of the tax implications of new business expenses ... Read Answer >>
  3. Why are capital expenses (CAPEX) treated differently than current expenses?

    Learn the difference between capital expenditures, or CAPEX, and current expenses, and determine why they are treated differently ... Read Answer >>
  4. If I pay for a course to learn about trading can I write some of it off?

    There are some investing costs that can be written off each year, even if you aren't a day trader. The general rule in determining ... Read Answer >>
  5. Can you write variable costs off your taxes?

    Learn if you can deduct variable or fixed costs from your business taxes and learn more about business deductions, cost of ... Read Answer >>
  6. How do I know whether to itemize deductions or take the standard deduction?

    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center