Background
Before its retirement post-2018, Form 2106-EZ: Unreimbursed Employee Business Expenses was the go-to document for budget-savvy workers trying to squeeze every penny back from Uncle Sam. It was like a financial Swiss Army knife for deducting everything from airfare fry-ups to the daily grind (mileage, not coffee).
Who Used It and Why It’s Now a Collector’s Item
Primarily, this form was the trusty sidekick for employees whose pockets were lighter due to work expenses their employers thought were more optional than a third pair of socks. It streamlined the claim process for expenses such as travel, meals, and lodging—turning a mountain of receipts into a molehill of straightforward tax deductions.
However, like dinosaurs and respectful online comments, Form 2106-EZ faced extinction. The Tax Cuts and Jobs Act, effective from 2018, pulled the plug on these deductions for most taxpayers, excluding some like performing artists and reservists, who presumably may still have battles to fight and shows to put on.
Continuing the Legacy
Though Form 2106-EZ has taken a permanent vacation, Form 2106 continues to toil in the tax trenches, allowing certain professionals to claim their rightful deductions. For the tax archaeologists, here’s how the form was filled:
- Part I: Add up all your qualified unreimbursed business expenses.
- Part II: Calculate vehicle expenses using the standard mileage rate, which was like the IRS’s version of “We trust you this much.”
Related Terms
- Standard Mileage Rate: An annually adjusted rate per mile set by the IRS for the deduction of vehicular expenses.
- Tax Cuts and Jobs Act: A 2017 legislation revamping the U.S. tax code, impacting deductions, rates, and Form 2106-EZ’s social life.
- IRS Form 2106: The longer, still-in-play sibling of Form 2106-EZ for the specially qualified working folk.
Recommended Books
- “The Tax Handbook for Tragically Unreimbursed Employees” – A sob story in ledger form.
- “Deductions Gone Wild: The Life and Times of Form 2106-EZ” – A thrilling paper chase for cinema-ready tax buffs.
Lessons From the Past
While the Form 2106-EZ is now part of tax history, its lessons linger. It teaches us the importance of keeping abreast with tax laws, lest you plan deductions for expenses that are as deductible as a pet rock.
So, as we close the book on Form 2106-EZ, remember: tax forms may come and go, but astute financial planning is forever. Or at least until the next big tax overhaul.
