Form 2106-EZ, Unreimbursed Employee Business Expenses and Schedule A—Itemized Deductions, for 2008

Summary: This is an example of Form 2106-EZ (2008) and Schedule A—Itemized Deductions as pertains to the example in the text. The line items completed are:

At the top of Form 2106-EZ:

“Your name” field contains Debra Smith

“Occupation in which you incurred expenses” field contains Salesperson

“Social security number” field contains 111-00-1111

Under“Part I: Figure Your Expenses”:

“1. Vehicle expense using the standard mileage rate. Complete Part II and then go to line 1a below.” field contains 0

Multiply business miles driven before July 1, 2008, by 50.5 (.505)“ field contains 0”
Multiply business miles driven after June 30, 2008, by 58.5 (.585)“ field contains 0”

“2. Parking fees, tolls, and transportation, including train, bus, etcetera, that did not involve overnight travel or commuting to and from work” field contains 500

“3. Travel expense while away from home overnight, including lodging, airplane, car rental, etcetera. Do not include meals and entertainment” field contains 0

“4. Business expenses not included on lines 1 through 3. Do not include meals and entertainment” field contains 1,100

“5. Meals and entertainment expenses: field contains $500 multiplied by 50% (.50) (Employees subject to Department of Transportation (D.O.T.) hours of service limits: Multiply meal expenses incurred while away from home on business by 80% (.80) instead of 50%. For details, see instructions.)” field contains 250

“6. Total expenses. Add lines 1c through 5. Enter here and on Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR, line 9)). Armed Forces reservists, fee-basis state or local government officials, qualified performing artists, and individuals with disabilities: See the instructions for special rules on where to enter this amount.)” field contains 1,850

Form 2106-EZ is cut-off after line 6.

The top of Schedule A—Itemized Deductions is inserted

Schedule A—Itemized Deductions is cut-off at approximately one inch down from the top.

The bottom of Schedule A—Itemized Deductions is inserted starting at line 21

“21. Unreimbursed employee expenses—job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See page A-9.)” field contains 1,850

“22. Tax preparation fees” “field contains 200”

“23. Other expenses–investment, safe deposit box, etc. List type and amount field contains ” “Investment counseling” field contains 300

“24. Add lines 21 through 23” field contains 2,350

“25. Enter amount from Form 1040, Line 38” field contains 40,000

“26. Multiply line 25 by 2% (.02)” field contains 800

“27. Subtract line 26 from line 24. If line 26 is more than line 24, enter -0-” field contains 1,550

“28. Other–form list on page A-9. List type and amount field contains” “ gambling losses” “field contains 200”