Updated October 19, 2026. Quick answer: The instructions for Form 2106 (2025) say only four groups of employees may use it: Armed Forces reservists, qualified performing artists, fee-basis state or local government officials and employees with impairment-related work expenses. The reason given is the elimination of miscellaneous itemized deductions subject to the 2% floor. Meal and entertainment costs have their own limits.
Quick reference
| Item | As the IRS form or instructions state it |
|---|---|
| Form and year read | Form 2106 for 2025 and its instructions, Nov 20, 2025 |
| SUV limit under section 179 | “The cost of any sport utility vehicle (SUV) that may be taken into account under section 179 cannot exceed $31,300.” |
| Standard meal allowance rates | “you must consistently use either the rates for the first 9 months of 2025 or the updated rates.” |
| Section 179 reduction | “The $2,500,000 limitation is reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during the 2025 tax year exceeds $4,000,000.” |
| Performing artist employers | “Performed services in the performing arts as an employee for at least two employers during the tax year,” |
| Entertainment | “No deduction is allowed for certain entertainment expenses, membership dues, and facilities used in connection with these activities for amounts paid or incurred after 2017.” |
The four groups and the reason for the limit
The instructions tell readers to use a flowchart to settle the question, and its first question concerns the four groups. For anyone outside them, the instructions describe a reimbursement case: “If you are not a member of the Armed Forces reserves, a qualified performing artist, a fee-basis state or local government official, or an employee with impairment-related work expenses,” followed by the rule for excess reimbursements from a nonaccountable plan.
The flowchart starts with questions about the filer’s job and expenses. Two of them read “Did you have job-related business expenses?” and “Are you claiming job-related vehicle, travel, transportation, meals, or entertainment expenses?” The overview of the form is on the Form 2106 instructions page.
Armed Forces reservists and fee-basis officials
A reservist is defined by service: “You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service.”
The instructions add a result for the reserve travel: “These reserve-related travel expenses are deductible whether or not you itemize deductions.” For fee-basis officials the same words appear: “These employee business expenses are deductible whether or not you itemize deductions.”
Qualified performing artists and employees with impairments
A performing artist must meet four requirements. The first reads “Performed services in the performing arts as an employee for at least two employers during the tax year,” A married filer has an extra rule: “In addition, if you are married, you must file a joint return unless you lived apart from your spouse for all of 2025.”
For an employee with an impairment, the instructions define the cost: “They also include other expenses in connection with the place of employment that enable the employee to work.” The vehicle side of the form is on a separate page.
Meals and entertainment as printed
Line 5 is described as “Enter your allowable meals expense.” “Include meals while away from your tax home overnight and other business meals.”
On entertainment, the instructions print two statements: “Meals that are not separately stated from entertainment are generally nondeductible.” “No deduction is allowed for certain entertainment expenses, membership dues, and facilities used in connection with these activities for amounts paid or incurred after 2017.” Line 4 carries its own warning: “Don’t include expenses for meals, taxes, or interest on line 4.”
For the standard meal allowance, the instructions say “The standard meal allowance is the federal M&IE rate.” “you must consistently use either the rates for the first 9 months of 2025 or the updated rates.”
Statutory limits named in the instructions
The What’s New section prints the aggregate section 179 limits that apply to all property: “The $2,500,000 limitation is reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during the 2025 tax year exceeds $4,000,000.”
Vehicle-specific amounts are covered on the Form 2106 vehicle expenses page.
Where this comes from
The editions read for this page are Form 2106 (2025) and the Instructions for Form 2106 (2025), dated Nov 20, 2025, which are the revisions irs.gov served when they were read on 2026-10-19. Check the revision printed on the form you file, because a later revision can change the lines and the amounts. This page describes Form 2106 (2025), Employee Business Expenses; Instructions for Form 2106 (2025), as served on irs.gov on October 19, 2026. The IRS can revise a form after we read it, and the form you file and its own instructions control. Current and earlier revisions are listed on the IRS page Forms, Instructions and Publications. General information, not tax or legal advice.
Common mistakes
- Assuming any employee can still file. The instructions say the form “may be used only by” the four groups.
- Deducting entertainment because it was business related. The instructions say “No deduction is allowed for certain entertainment expenses”.
- Treating a combined meal and entertainment amount as meals. The instructions say “Meals that are not separately stated from entertainment are generally nondeductible.”
- Overlooking the joint return rule for a performing artist. The instructions say “if you are married, you must file a joint return” unless the filers lived apart all year.
Related: Form 2106 instructions, Form 2106 vehicle expenses and mileage, IRS Publication 463, Schedule 1 lines 12 to 14, Schedule A line 16, and Form 5329 code 11 reservist distributions.
Sources
- Form 2106 (2025), Employee Business Expenses: https://www.irs.gov/pub/irs-pdf/f2106.pdf
- Instructions for Form 2106 (2025): https://www.irs.gov/pub/irs-pdf/i2106.pdf
Read from the IRS pages linked above on October 19, 2026. General information, not tax or legal advice. The IRS form and the instructions for your own form control, and your own facts decide the outcome.