Form W-2 - Employee Expense Reimbursements

Substantiated employee business expense reimbursements are reported on Box 12 of Form W-2 Wage and Tax Statement. If you don't use this expense, the unused amount would be taxed as wages.

Excess reimbursements. 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, and receive reimbursements in excess of your expenses from your employer’s nonaccountable plan, the excess reimbursements should be included in your wages (in box 1 of Form W-2) and reported on line 1 of your Form 1040 or 1040-SR.

If you need help reporting your Form W-2 in the TaxAct program, go to our Form W-2 - Entering in Program FAQ.

Once you've entered your wages from Form W-2, complete Form 2106 Employee Business Expenses to report employee business expenses.

To enter your information for Form 2106 in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Adjustments dropdown, then click either National Guard/Reserve member from Form 2106 or Qualified performing Artist or Fee-Basis Government Official from Form 2106, whichever applies.
  3. Click + Add Form 2106 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process to enter your information.

The total of the expenses you enter 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, move the reimbursement to Line 7b (reimbursements for meals and entertainment) on Form 2106, or make the change on the Employee Expenses – Employer Reimbursements screen. Enter a zero on Line 7a and enter the reimbursement amount on Line 7b.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.