Example #1 - 2106-EZ

The employee does not fall into the category of "a salesperson who solicits business for an employer while away from the employer's place of business."

The employee incurs the following expenses:

  • Business related miles driven during 2014 = 2009
  • Parking fees, tolls, and transportation = $350
  • Travel expense while away from home overnight, including lodging, airplane, car rental, etc. = $700

The employee's federal adjusted gross income is $39,000.
 

2014 U.S. Form 2106-EZ
Part 1 Figure Your Expenses 
Line 1. Complete Part II. Multiply line 8a by 56¢ (.56). Enter the result here.$1,125
Line 2. Parking fee, tolls, and transportation, including train, bus,
etc., that did not involve overnight travel or commuting to and from
work
$350
Line 3. Travel expense while away from home overnight, including
lodging, airplane, car rental, etc. Do not include meals
and entertainment
$700
Line 4. Business expenses not included on Lines 1 through 3. Do
not
include meals and entertainment
$0
Line 5. Meals and entertainment expenses
$________ x 50% (.50). (Employees subject to Department of
Transportation (DOT) hours of service limits: Multiply meal expenses
incurred while away from home on business by 80% (.80) instead of
50%. For details, see instructions.) 
$0
Line 6. Total expenses. Add lines 1 through 5. Enter here and on
Schedule A, (Form 1040) line 21
$2,175
  
Part 2 Information on Your Vehicle 
Line 7. When did you place your vehicle in service for business use?___/___/___ 
Line 8. Of the total number of miles you drove your vehicle during 2014, enter the number of miles you used your vehicle for: a. Business 2009 b. commuting (see instructions)_________c. Other_______ 
2014 Schedule A, Job Expenses and Most Other Miscellaneous Deductions
Line 21. Unreimbursed employee expenses - job travel, union dues,
job education, etc. Attach Form 2106 or 2106-EZ if required
$2,175
Line 23. Other expenses$0
Line 24. Add lines 21 through 23$2,175
Line 25. Enter amount from 1040, Line 38$39,000
Line 26. Multiply line 25 by 2% (.02)$780
Line 27. Subtract line 26 from line 24. If line 26 is more than line
24, enter -0-
$1,395

2014 Schedule Y, Line 1 - Massachusetts Employee Business Expense Deduction Worksheet

Generally, reimbursed employee business expenses are not included in your wages or salary and therefore are not allowed as deductions. However, there are unreimbursed and certain reimbursed expenses for which you are allowed a deduction. Complete the following worksheet in order to calculate your Massachusetts employee business expense deduction. The expenses must relate to income reported in lines 3 or 9 on Form 1. Note: All expenses  must be documented upon request.

Employees may deduct the following:

  • unreimbursed travel and transportation expenses including lodging and meals away from home incurred by an employee; and
  • all federally deductible unreimbursed employee business expenses, if the employee is a salesperson who solicits business for an employer away from the employer's place of business.

Unreimbursed expenses are only deductible if all or the following conditions are met:

  • you itemize deductions;
  • if you filed a joint U.S. return, you must file a joint Massachusetts return; and
  • your unreimbursed business expenses taken together with the other miscellaneous itemized deductions reported on U.S. Form 1040, Schedule A, line 21, 22 and 23 exceed 2% of your federal adjusted gross income reported on U.S. Form 1040, Schedule A, line 26. See the Schedule Y, Line 1 Worksheet.

If you are a qualified performing artist or a fee-basis state or local government official, do not complete the worksheet. Enter on Schedule Y, line 9 your federally deductible business expenses included on U.S. Form 1040, line 24 and fill in the appropriate oval in Schedule Y, line 9.

1. Enter the amount from U.S. Form 2106, Line 10, or 2106-EZ, Line 6$2,175
2. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed expenses included in U.S. Form 2106
or 2106-EZ, Line 4
$0
3. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed meals and entertainment expenses
included in U.S. Form 2106, Line 9, col. B or 2106-EZ, Line 5,
except for meals incurred while away from home
$0
4. If you are an individual with a disability, enter the amount of
impairment-related expenses included in Line 1 and claimed on Line
28 of U.S. Schedule A
$0
5. Add lines 2 through 4.$0
6. Subtract Line 5 from Line 1$2,175
7. Enter the amount from U.S. Schedule A, Line 27$1,395
8. Enter the smaller amount of Line 6 or 7 here and on Schedule
Y, Line 1
$1,395

Example #2 - 2106 for Employee

The employee does not fall into the category of "a salesperson who solicits business for an employer while away from the employer's place of business."

The employee incurs the following expenses:

  • Vehicle expenses = $1,600
  • Parking fees tolls, and transportation = $450
  • Travel expense while away from home overnight, including lodging, airplane, car rental, etc, etc ( not including meals and entertainment) = $950
  • Business expenses not included in amounts above ( not including meals and property) = $150
  • Meals and entertainment expenses = $655
    • meals while away from home = $200
    • meals, other = $180
    • entertainment = $275

The employee receives the following reimbursements:

  • Reimbursement for vehicle expenses, parking fees, tolls, etc. and travel expenses = $1,400
  • Reimbursement for meals, other = $180

Other :

  • The employee's federal adjusted gross income is $46,000
  • Other expenses for Schedule A, Line 23, are $2,472.
2014 U.S. Form 2106 shows the following amounts
Step 1 - Enter Your Expenses:
Line 1 Col. A, Vehicle expense from Line 22 or Line 29$1,600
Line 2 Col. A, Parking fee, tolls, and transportation, including
train, bus, etc., that did not involve overnight travel or commuting to
and from work
$450
Line 3 Col. A, Travel expense while away from home overnight,
including lodging, airplane, car rental, etc. Do not include meals
and entertainment
$950
Line 4 Col. A, Business expenses not included on Lines 1 through
3. Do not include meals and entertainment
$150
Line 5 Col. B, Meals and entertainment expenses (see instructions)$655
Line 6 Col. A, Total expenses not including meals and
entertainment, add Lines 1 through 4 and enter the result
$3,150
Line 6 Col. B, Total Meals and Entertainment Expenses, enter amount from
line 5
$655

Step 2 - Enter reimbursements received from Your Employer for Expenses Listed in Step 1 (amounts that were not reported to employee in Box 1 of Form W-2):
Line 7 Col. A, Enter reimbursements for expenses other than Meals and
Entertainment
received from your employer that were not reported to
you in box 1 of Form W-2. Include any reimbursements reported under code "L"
in box 12 of your Form W-2 (see instructions)
$1,400
Line 7 Col. B, Enter reimbursements for Meals and Entertainment Expenses
received from your employer that were not reported to you in box 1 of Form W-2.
Include any reimbursements reported under code "L" in box
12 of your Form W-2 (see instructions)
$180

Step 3 - Figure Expenses to Deduct on U.S. Schedule A: (Form 1040 or Form 1040NR):
Line 8 Col. A, Subtract Line 7 from Line 6$1,750
Line 8 Col. B, Subtract Line 7 from Line 6$475
Line 9 Col. A, Enter amount from Line 8$1,750
Line 9 Col. B, Multiply Line 8 by 50% (.50) Enter amount from Line 8$238
Line 10, Add the Amounts on Line 9 of both columns and enter the
total here. Also enter the total on Schedule A (Form 1040), Line 21
$1,988
2014 Schedule A, Job Expenses and Most other Miscellaneous Deductions
Line 21. Unreimbursed employee expenses - job travel, union dues,
job education, etc. Attach Form 2106 or 2106-EZ if required
$1,988
Line 23. Other expenses $2,472
Line 24. Add lines 21 through 23 $4,460
Line 25. Enter amount from 1040, Line 38 $46,000
Line 26. Multiply line 25 by 2% (.02) $920
Line 27. Subtract line 26 from line 24. If line 26 is more than line
24, enter -0-
$3,540

2014 Schedule Y, Line 1 - Massachusetts Employee Business Expense Deduction Worksheet

Generally, reimbursed employee business expenses are not included in your wages or salary and therefore are not allowed as deductions. However, there are unreimbursed and certain reimbursed expenses for which you are allowed a deduction. Complete the following worksheet in order to calculate your Massachusetts employee business expense deduction. The expenses must relate to income reported in lines 3 or 9 on Form 1. Note: All expenses must be documented upon request.

Employees may deduct the following:

  • unreimbursed travel and transportation expenses including lodging and meals away from home incurred by an employee; and
  • all federally deductible unreimbursed employee business expenses, if the employee is a salesperson who solicits business for an employer away from the employer's place of business.

Unreimbursed expenses are only deductible if all or the following conditions are met:

  • you itemize deductions;
  • if you filed a joint U.S. return, you must file a joint Massachusetts return; and
  • your unreimbursed business expenses taken together with the other miscellaneous itemized deductions reported on U.S. Form 1040, Schedule A, line 21, 22 and 23 exceed 2% of your federal adjusted gross income reported on U.S. Form 1040, Schedule A, line 26. See the Schedule Y, Line 1 Worksheet.

If you are a qualified performing artist or a fee-basis state or local government official, do not complete the worksheet. Enter on Schedule Y, line 9 your federally deductible business expenses included on U.S. Form 1040, line 24 and fill in the appropriate oval in Schedule Y, line 9.

1. Enter the amount from U.S. Form 2106, Line 10, or 2106-EZ, Line 6$1,988
2. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed expenses included in U.S. Form 2106 or
2106-EZ, Line 4
$150
3. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed meals and entertainment expenses
included in U.S. Form 2106, Line 9, col. B or 2106-EZ, Line 5, except
for meals incurred while away from home.
$138
4. If you are an individual with a disability, enter the amount of
impairment-related expenses included in Line 1 and claimed on Line
28 of U.S. Schedule A
$0
5. Add lines 2 through 4$288
6. Subtract Line 5 from Line 1$1,700
7. Enter the amount from U.S. Schedule A, Line 27$3,540
8. Enter the smaller amount of Line 6 or 7 here and on Schedule
Y, Line 1
$1,700


Worksheet, Line 5 = $288, unreimbursed expenses not allowed:

  • $150, business expenses reported on Line 4. Col A;
  • $138, 50% of unreimbursed meals and entertainment expenses ( except for meals incurred while away from home of $100) reported on 2106, Line 9 (.50 x $275)

Example #3 - 2106 for Employee as a Salesperson

The employee qualifies as a salesperson who solicits business for an employer while away from the employer's place of business.

The employee incurs the following expenses:

  • Vehicle expenses = $2,600
  • Parking fees, tolls, and transportation = $1,800
  • Travel expense while away from home overnight, including lodging, airplane, car rental, etc.( not including meals and entertainment)= $1,700
  • Business expenses not included in amounts above ( not including meals and entertainment)= $400
  • Meals and entertainment expenses = $2,100

Other:

  • The employee's federal adjusted gross income is $55,000;
  • Other expenses for Schedule A, Line 23 are $6,430.
2014 U.S. Form 2106 shows the following amounts
Step 1 - Enter Your Expenses:
Line 1 Col. A, Vehicle expense from Line 22 or Line 29$2,600
Line 2 Col. A, Parking fee, tolls, and transportation, including
train, bus, etc., that did not involve overnight travel or commuting to
and from work
$1,800
Line 3 Col. A, Travel expense while away from home
overnight, including lodging, airplane, car rental, etc. Do not include
meals and entertainment
$1,700
Line 4 Col. A, Business expenses not included on Lines 1 through
3. Do not include meals and entertainment
$400
Line 5 Col. B, Meals and entertainment expenses (see instructions)$2,100
Line 6 Col. A, Total expenses not including meals and
entertainment, add Lines 1 through 4 and enter the result
$6,500
Line 6 Col. B, Meals and Entertainment expenses, enter amount
from line 5
$2,100

Step 2 - Enter Reimbursements Received from Your Employer for Expenses Listed in Step 1 (amounts that were not reported to employee in Box 1 of Form W-2):
Line 7 Col. A, Enter reimbursements for expenses other than Meals and
Entertainment
received from your employer that were not reported to you in
box 1 of Form W-2. Include any reimbursements reported under code "L" in box
12 of your Form W-2 (see instructions)
$3,900
  
Line 7 Col. B, Enter reimbursements for Meals and Entertainment
expenses
received from your employer that were not reported to
you in box 1 of Form W-2. Include any reimbursements reported under code "L"
in box 12 of your Form W-2 (see instructions)
$1,260

Step 3 - Figure Expenses to Deduct on U.S. Schedule A:
Line 8 Col. A, Subtract Line 7 from Line 6$2,600
Line 8 Col. B, Subtract Line 7 from Line 6$840
Line 9 Col. A, Enter amount from Line 8$2,600
Line 9 Col. B, Multiply Line 8 by 50% (.50) Enter amount from Line 8$420
Line 10, Add the Amounts on Line 9 of both columns and enter
the total here. Also enter the total on Schedule A (Form 1040), Line 21
$3,020
2014 Schedule A, Job Expenses and Most Other Miscellaneous Deductions
Line 21. Unreimbursed employee expenses - job travel, union dues,
job education, etc. Attach Form 2106 or 2106-EZ if required
$3,020
Line 23. Other expenses$7,530
Line 24. Add lines 21 through 23$10,550
Line 25. Enter amount from 1040, Line 38$55,000
Line 26. Multiply line 25 by 2% (.02)$1,100
Line 27. Subtract line 26 from line 24. If line 26 is more than line
24, enter -0-
$9,450

2014 Schedule Y, Line 1 - Massachusetts Employee Business Expense Deduction Worksheet

Generally, reimbursed employee business expenses are not included in your wages or salary and therefore are not allowed as deductions. However, there are unreimbursed and certain reimbursed expenses for which you are allowed a deduction. Complete the following worksheet in order to calculate your Massachusetts employee business expense deduction. The expenses must relate to income reported in lines 3 or 9 on Form 1. Note: All expenses must be documented upon request.

Employees may deduct the following:

  • unreimbursed travel and transportation expenses including lodging and meals away from home incurred by an employee; and
  • all federally deductible unreimbursed employee business expenses, if the employee is a salesperson who solicits business for an employer away from the employer's place of business.

Unreimbursed expenses are only deductible if all or the following conditions are met:

  • you itemize deductions;
  • if you filed a joint U.S. return, you must file a joint Massachusetts return; and
  • your unreimbursed business expenses taken together with the other miscellaneous itemized deductions reported on U.S. Form 1040, Schedule A, line 21, 22 and 23 exceed 2% of your federal adjusted gross income reported on U.S. Form 1040, Schedule A, line 26. See the Schedule Y, Line 1 Worksheet.

If you are a qualified performing artist or a fee-basis state or local government official, do not complete the worksheet. Enter on Schedule Y, line 9 your federally deductible business expenses included on U.S. Form 1040, line 24 and fill in the appropriate oval in Schedule Y, line 9.

1. Enter the amount from U.S. Form 2106, Line 10, or 2106-EZ, Line 6$3,020
2. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed expenses included in U.S. Form 2106
or 2106-EZ, Line 4
$0
3. If you are an employee other than an outside salesperson, enter
the amount of unreimbursed meals and entertainment expenses
included in U.S. Form 2106, Line 9, col. B or 2106-EZ, Line 5, except
for meals incurred while away from home.
$0
4. If you are an individual with a disability, enter the amount
of impairment-related expenses included in Line 1 and claimed on
Line 28 of U.S. Schedule A
$0
5. Add lines 2 through 4$0
6. Subtract Line 5 from Line 1$3,020
7. Enter the amount from U.S. Schedule A, Line 27$9,450
8. Enter the smaller amount of Line 6 or 7 here and on Schedule Y, Line 1$3,020

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