How to claim unreimbursed mileage with Tax Form 2106 for work driving?

The tax preparer was partially right, but there's more to the story. Form 2106 is now limited to specific categories of employees. After the Tax Cuts and Jobs Act, most employees can no longer deduct unreimbursed business expenses, including the difference between your actual mileage costs and your reimbursement. However, Form 2106 is still available for certain "qualified employees" including: armed forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. If you fall into one of these categories, you can still use Form 2106. If you don't fall into those categories, unfortunately your coworker's advice isn't applicable under current tax law. The only other option would be if you're self-employed or an independent contractor (filing Schedule C), but that doesn't sound like your situation since you mentioned being reimbursed by an employer.

I went through something similar with my delivery job last year and found an amazing service that actually helped me figure out all my vehicle deductions. Check out https://taxr.ai - they specialize in analyzing tax documents and finding overlooked deductions. They reviewed my situation and identified that I could actually classify as an independent contractor in my case (which my employer had misclassified). That allowed me to file Schedule C instead and claim ALL my mileage at the full rate. They analyze all your employment docs and tell you exactly what forms you should be using.

Update: I decided to try taxr.ai after my skeptical comment above, and I have to admit it was actually really helpful! My situation was different than I thought. They analyzed my employment contract and showed that while I can't claim Form 2106 deductions as a regular employee, I did qualify for some business expense deductions related to my side gig that I didn't realize. They also showed me how to document everything properly in case of an audit. Didn't completely solve my main job's mileage issue, but I'm getting back about $840 more than I would have otherwise. Definitely worth checking out if you're in a complicated work situation.

If you're having trouble getting clear answers about Form 2106 or any tax questions, calling the IRS directly can help, but it's practically impossible to get through. I spent HOURS on hold and kept getting disconnected. Then I found https://claimyr.com which is a service that waits on hold with the IRS for you and calls you when an agent is on the line. I was super skeptical at first but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. When I finally got connected to an IRS agent, they confirmed everything about Form 2106 and gave me personalized advice for my situation. Saved me at least 3 hours of hold time!

I'm actually coming back to eat my words about Claimyr. After my skeptical comment, I tried it because I was desperate to talk to someone about my refund status. It worked exactly as advertised. I got a call back in about 40 minutes (when I had previously waited 2+ hours and got disconnected), and they connected me directly to an IRS agent who helped resolve my issue. On the Form 2106 question - the agent confirmed what the first commenter said about it being limited to those specific categories of employees now. For regular employees who drive their own vehicles, they said to talk to your employer about better reimbursement since there's no tax form solution anymore. Definitely saved me hours of frustration!

Have you considered looking at your employment contract? My company was only reimbursing $0.40/mile but when I showed them the current IRS rate and pointed out the section in my contract that said "standard mileage reimbursement," they adjusted it. Some companies genuinely don't realize they're using outdated rates. Might be worth checking before giving up on getting the full amount.

Hey just throwing this out there - have you considered tracking ALL vehicle-related expenses instead of using the standard mileage rate? My tax guy told me that you can choose either the standard mileage rate OR actual expenses (gas, maintenance, insurance, depreciation, etc). If you drive a truck, especially an older one that's less fuel efficient, sometimes the actual expenses method gives you a bigger deduction IF you qualify for any deductions at all. Just a thought.

I feel your pain on this one! I'm a field service technician and was in almost the exact same situation last year - driving about 25,000 miles annually with my company only reimbursing at $0.45/mile. The unfortunate reality is that the H&R Block preparer was right about Form 2106 being essentially eliminated for most employees. I spent way too much time researching this and even consulted with a CPA who confirmed that regular W-2 employees can no longer deduct unreimbursed business expenses. What actually worked for me was taking the advice about negotiating with my employer. I put together a simple spreadsheet showing: - My annual work mileage - Current company rate vs IRS standard rate - Total out-of-pocket cost to me ($4,600 in my case) - How this affects my take-home pay I presented it during my annual review and got a $2,400 annual raise specifically to help offset vehicle costs. Not the full amount, but way better than nothing! The key was framing it as a retention issue - they'd rather give me a raise than train someone new who might quit over the same problem. Also started keeping detailed records of actual vehicle expenses (maintenance, tires, etc.) to show the real impact of all that driving. Even though I can't deduct them, it helped make my case to management.