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Federal input screens

Screen 2106 - Employee Business Expenses (1040)

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Form 2106 / SBE - General Information

Occupation
Enter the client's occupation at the time the business expenses were incurred. This information is used for unit identification. This field is mandatory.
Special occupations
Enter the appropriate code in this field if the individual is a qualified performing artist, has impairment-related work expenses, is a fee-basis official, or is a member of a reserve component of the Armed Forces.
note
The Tax Cuts and Jobs Act eliminated the itemized deduction of employee business expenses subject to the 2% federal AGI limitation. However, you can use this screen to enter information for
state
returns that allow miscellaneous itemized deduction of employee business expense. If calculating Form 2106 for state purposes only, leave this field blank.
State use code
The state use codes that are available depend on the state postal code you entered in the
State
 field. The
State use code
 field is disabled if no codes apply.
City code / city name
Enter a city code if the business expense information is applicable to a specific locality. After you select a city code from the list, the
City name
 field completes automatically.
Form 2555 allocation code
Based on this code, the Form 2555 Allocation Worksheet reports the allocation between U.S. and foreign earned income, including any related self-employment items. For Form 1116 Foreign Tax Credit eligibility, foreign earned income is reported, less any applicable Form 2555 exclusion.
Enter additional data on the 1116, 2555, and 2555-2 screens.
Net income for home office deduction
Enter an amount to force the calculated net income before home office deduction on the Business Use of Your Home Worksheet for home offices #1 and/or #2. The calculated amount for net income is total wages.
Suppress carry of home office interest...
If the taxpayer uses the same house on multiple 8829 screens, enter
X
 to suppress the transfer of interest and taxes to Schedule A, and enter the allowable home mortgage interest in the A screen.

Employee Business Expenses and Other Information

Section 280F... (Force)
Enter the information required to compete Form 4797, Part IV, Recapture Amounts Under Section 280F(b)(2) When Business Use Drops to 50% or Less. Recapture amounts are reported as other income on Form 1040, Schedule 1, line 8z when
1 Qualified artist
,
3 Fee-basis official
, or
5 Reserve component
 is selected in the
Special occupations
 field. The recapture amounts calculated for supplemental business expenses will be reported as other income on the applicable form or schedule. If the assets are entered in the asset module, enter an amount to override the calculated amounts.
If the
Special occupations
 field is
2 Handicapped employee
, the business expenses are reported on Schedule A, and there may be a potential recovery of an itemized deduction. Enter the amount, if any, to be included in income in the statement attached to the
Other income
 field in the Income screen, located in the Income folder.

Supplemental Business Expenses (SBE)

Form/Schedule, Unit, Bus %, Auto %
Use these fields to select activities and the percentages of the supplemental business expenses for each of them. Enter only shared expenses on this screen. For assets such as vehicles, use the Asset screen in the Itemized Deduction folder.
By default, the amount in the
Auto %
 field is the same as the
Bus %
 unless you enter a different percentage in the
Auto %
 field. If the total allocation is not equal to 100%, the remainder of the expenses transfers to Form 2106.
note
  • Supplemental business expenses are shared business and auto expenses that can be divided between various activities on the return, such as Schedule C or Schedule F.
  • Don’t enter expenses or assets for the activities in the Asset screen.

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