AR2106: Employee Business Expenses (2024)
Arkansas · Arkansas DFA · Used for tax years 2024
Form AR2106 reports employee business expenses and employer reimbursements for Arkansas individual income tax. It calculates the expenses to deduct on Schedule AR3 and includes sections for vehicle expenses and depreciation.
Who files this form
Arkansas Form AR2106 is for reporting employee business expenses and employer reimbursements and figuring the amount to deduct on Schedule AR3.
If you claim vehicle expenses, you must complete Part II, Section A.
What you'll need
Have the following information available to complete the form:
- Your legal name, Social Security number, and the occupation in which you incurred the expenses.
- Amounts for business travel, transportation, parking, tolls, meals and entertainment, and other business expenses.
- Employer reimbursement amounts and Form W-2, including boxes 1 and 12.
- If claiming vehicle expenses, the date the vehicle was placed in service, total miles driven during 2024, business miles, commuting miles, and evidence supporting your mileage deduction.
- If using actual vehicle expenses, amounts for gasoline, oil, repairs, insurance, rentals, and applicable depreciation information.
Common mistakes
- Do not include commuting to and from work on line 2. That line also excludes transportation involving overnight travel.
- Do not include meals and entertainment on lines 3 or 4. Enter them separately on line 5.
- If you received no reimbursements for Step 1 expenses, skip line 7 and carry line 6 to line 8.
- If line 7 exceeds line 6 in column A, report the excess as income on Form AR-OI, line 7.
- If both columns of line 8 are zero, you cannot deduct employee business expenses. Stop and attach AR2106 to your return.
- Use the vehicle depreciation section only if you owned the vehicle and are completing Section C for it.
Questions people ask
Where does the final deduction amount go?
Add both columns of line 9 and enter the total on line 10. Also enter that total on Schedule AR3, line 20.
Which employer reimbursements go on line 7?
Enter reimbursements for Step 1 expenses that were not reported in box 1 of Form W-2. Include reimbursements reported under code “L” in box 12.
How are meals and entertainment treated?
For column B of line 9, multiply line 8 by 50%. Employees subject to Department of Transportation hours-of-service limits use 80% instead for meal expenses incurred while away from home on business.
What standard mileage rate is printed on the 2024 form?
Line 22 says to multiply business miles on line 13 by 62.5 cents (.625) for miles driven in 2024. Enter the result on lines 22 and 1. The form refers to instructions for deciding whether to use standard mileage or actual expenses, but those instructions were not provided.