Box 12 of Form W-2 with code L reports substantiated employee business expense reimbursements. If you do not use this expense, the unused amount would be taxed as wages.

To enter the W-2 box 12 amount:

1. From within your TaxAct® return (Online or Desktop) click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
2. Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand the category, then click Wage income reported on Form W-2
3. Click New Copy of Form W-2 (Desktop users click Add) to create a new version of the form, or click Review to review a copy already created. If you choose to use Quick Entry, select code W for box 12 and enter the amount. If you choose to use Step-by-Step Guidance, follow steps 4 and 5 below.
4. Continue to the screen titled Additional compensation and benefits 
5. Select L - Substantiated employee business exp. reimbursements for the code and enter the amount reported to you in box 12

Once you have entered your W-2 data, complete IRS Form 2106 to report employee business expenses.  To enter your information for Form 2106 in the TaxAct program:

1. Click the Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
2. Click Other Adjustments in the Federal Quick Q&A Topics menu to expand the category, then click National Guard/Reserve member from Form 2106 or Qualified Performing Artist or Fee-Basis Government Official from Form 2106, whichever applies. 
3. The program will proceed with the interview questions for you to enter or review the appropriate information 

As you enter your expenses, the amount of the reimbursement will transfer to Line 7 of Form 2106. TaxAct automatically places the amount on Line 7a (reimbursements for expenses other than meals and entertainment). 

If you have more expenses for meals and entertainment, then move the reimbursement over to Line 7b (reimbursements for meals and entertainment) on Form 2106, or make the change on the screen titled Employee Expenses – Employer Reimbursements. Enter a zero on Line 7a and enter the reimbursement amount on Line 7b.