If you are a member of a reserve component of the Armed Forces of the United States (Army, Naval, Marine Corps, Air Force, or Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service), and you have expenses for travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income. The amount of expenses deductible as an adjustment is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Include all unreimbursed expenses from the time you leave home until your return home. The deduction is limited to the amount the federal government generally reimburses its employees for travel expenses. For tax years prior to 2018 only, any expenses in excess of these amounts can be claimed only as a miscellaneous itemized deduction subject to the 2% limit on Schedule A, Form 1040.
To enter the business expenses of reservists in Keystone Tax Solutions Pro, from the Main Menu of the Tax Return (Form 1040) select:
- Adjustments
- Business Expenses of Reservists (2106)
NOTE: This is a guide on entering Business Expenses of Reservists into the Keystone Tax Solutions Pro program. This is not intended as tax advice. For additional information refer to the Additional Information below.
Additional Information:
Instructions for Form 2106 – Employee Business Expenses
Publication 463, Travel, Entertainment, Gift and Car Expenses