How To Report You must itemize deductions on Schedule A (Form 1040) to claimmiscellaneous deductions. Report your miscellaneous deductions subject to the 2% limiton lines 20 through 22 and the total on line 23. Report your miscellaneous deductions not subject to the 2%limit on line 27. See Instructions for Schedule A in your Form 1040instruction booklet for more information. Form 2106 and Form 2106-EZ.If you have deductible employee business expenses, you usually mustfile either Form 2106 or Form 2106-EZ. You must file Form 2106 or Form 2106-EZ if any of thefollowing apply. You are claiming job-related travel, transportation, meal,or entertainment expenses. You are a qualified performing artist claimingperforming-artist-related expenses. (See Performing Artists,earlier.) You are a fee-basis state or local government officialclaiming expenses in performing that job. (See Officials Paid ona Fee Basis, earlier.) You are an individual with a disability and are claimingimpairment-related work expenses. (See Impairment-Related WorkExpenses under Deductions Not Subject to the 2%Limit, earlier.) When not to file Form 2106 or Form 2106-EZ.Do not file Form 2106 or Form 2106-EZ if: None of your expenses are deductible because of the 2% limiton miscellaneous itemized deductions, or Line 4 of Form 2106 or Form 2106-EZ (expenses forbusiness gifts, education, home office, trade publications, etc.) isyour only entry. If (1) above does not apply, but (2) does, enter the expensesdirectly on line 20 of Schedule A (Form 1040). Caution: This does not apply if you are a qualified performing artistclaiming performing-artist-related business expenses or an individualwith a disability claiming impairment-related work expenses or afee-basis state or local government official claiming expenses inperforming that job. Locations de vacnaces ValenciaWho can use Form 2106-EZ.You can use the shorter Form 2106-EZ instead of Form 2106 ifboth of the following apply. You do not get reimbursed by your employer for any expenses.(Amounts your employer included in box 1 of your Form W-2 arenot considered reimbursements.) Either: You are not claiming vehicle expense, or You are using the standard mileage rate for yourvehicle. Statutory employee.If you are a statutory employee, deduct the business expensesrelated to being a statutory employee on Schedule C or C-EZ(Form 1040). You are a statutory employee if you meet one of the following fourdescriptions. You are a driver who is either an agent of your employer orpaid on commission and you: Distribute meat, vegetable, fruit, or bakeryproducts, Distribute beverages (other than milk), or Pick up and deliver laundry or dry cleaning. You are a full-time life insurance sales agent whoseprincipal business activity is selling life insurance or annuitycontracts, or both, primarily for one life insurance company. You work at home on materials or goods furnished by youremployer. Your employer must furnish specifications for the work to bedone and the work must be returned to your employer or a person namedby your employer. You are a full-time traveling or city salesperson and youturn in orders to your employer from wholesalers, retailers,contractors, or operators of hotels, restaurants, or other similarestablishments. The goods sold must be merchandise for resale orsupplies for use in the buyer's business operation. This work must beyour principal business activity. If you are a statutory employee, you will receive a Form W-2from your employer with the box in box 15 checked to indicate"Statutory employee." Example Debra Smith is employed as a salesperson. Her adjusted gross incomeis $40,000, and she did not receive any reimbursement for herexpenses. She has the following qualifying miscellaneous deductions: Entertainment expenses $500 Transportation expenses $500 Home office expenses $1,100 Tax return preparation $200 Investment counseling $300 Gambling losses (reported $200 as income) $200 hotel rooms La RocheHer filled-in Form 2106-EZ and part of her Schedule A (Form1040) are shown. Of Debra's deductions, only gambling losses are notsubject to the 2%-of-adjusted-gross-income limit. She enters thegambling losses on line 27 of Schedule A. The other items are subjectto the 2% limit and are shown on lines 20, 21, and 22 of Schedule A. Debra completes Part I of Form 2106-EZ. She enters thetransportation expenses of $500 on line 2. The home office expenses of$1,100 are entered on line 4. The entertainment expenses of $500 aresubject to the 50% limit and are entered on line 5. She then completesthe rest of the form. The total expenses of $1,850, shown on line 6,are entered on line 20 of Schedule A. Debra's expenses for tax return preparation are entered on line 21of Schedule A. Her expenses for investment counseling are entered online 22. She then totals the amounts on lines 20, 21, and 22 andenters this total of $2,350 on line 23. She enters $40,000, heradjusted gross income, on line 24. She multiplies this amount by 2%(.02) and enters the result of $800 on line 25. She subtracts theamount on line 25 from the amount on line 23 and enters $1,550, herallowable deduction, on line 26. Form 2106-EZ, Sch A