Military Reserve Expenses: What Can You Deduct?

Members of the U.S. Armed Forces reserves often incur job-related expenses that may be deductible on their federal income tax returns. These deductions serve to reduce a reservist’s taxable income. The Internal Revenue Service (IRS) provides specific rules for members of the reserve components, which include the Army, Navy, Marine Corps, Air Force, Coast Guard Reserve, and the Army and Air National Guards. This tax benefit applies to costs that are not paid back by the military.

Qualifying Unreimbursed Expenses

If a reservist receives a travel allowance or other repayment for an expense, it cannot be deducted. The primary category of deductible costs relates to travel for reserve duties. For these expenses to qualify, the reservist must travel more than 100 miles from their home and stay overnight. This 100-mile rule is a strict threshold; travel to a duty station less than 100 miles away is not eligible for this specific deduction.

When the travel criteria are met, several types of expenses become deductible. Transportation costs are included, which can be calculated using the standard mileage rate set by the IRS—70 cents per mile for business travel in 2025—or by tracking the actual costs of using your vehicle, such as gas and oil. Other transportation costs like airfare, train tickets, ferry fares, and tolls are also deductible.

Lodging costs for the overnight stay are deductible, as are meal expenses. However, meal deductions are subject to a 50% limitation, meaning only half the cost can be claimed. The total amount of these travel expenses—lodging, meals, and incidental costs—is limited to the federal per diem rate for the location of the training. These rates are set by the General Services Administration (GSA) and vary by locality.

Beyond travel, the costs associated with buying and maintaining required military uniforms can be deducted. This includes the purchase price of the uniforms and any associated cleaning or repair costs. The condition is that the uniforms must be required for duty and not be suitable for everyday, off-duty wear. If the uniform can be worn as regular clothing, its cost is not deductible.

Other miscellaneous expenses may also qualify. For instance, dues paid to professional military associations or the cost of subscriptions to professional journals related to a reservist’s military specialty could be considered deductible business expenses. In all cases, the foundational requirement is that the expense must not have been reimbursed.

Required Documentation and Form Preparation

Proper record-keeping is necessary to substantiating any claimed deductions. For travel expenses, a detailed mileage log is necessary if you plan to use the standard mileage rate. This log should document the dates of travel, the purpose of each trip, the starting and ending locations, and the total miles driven. For all other travel costs, receipts are the primary form of documentation, including those for lodging, airfare, bus tickets, and any tolls or parking fees.

Similarly, receipts for uniform purchases, dry cleaning, and alterations must be kept. For any other miscellaneous deductions, such as professional dues or publications, canceled checks or credit card statements showing the payment can serve as proof. You should also retain copies of your military orders. These orders help establish the business connection for the travel and validate that the 100-mile and overnight stay requirements were met.

These unreimbursed expenses are calculated on Form 2106, Employee Business Expenses. You will transfer information from your records into the appropriate sections. Part I of the form is for calculating total employee business expenses, while Part II is for vehicle expenses. Here, you calculate the deductible amount using either the standard mileage rate or your actual expenses. Other costs, such as lodging and the 50% of meals, are entered in Part I.

How to Claim the Deduction on Your Tax Return

After completing Form 2106, you report the deduction on your annual tax return, Form 1040. The deduction for a reservist’s unreimbursed business expenses is an “above-the-line” deduction. This means it is taken as an adjustment to your gross income, and you do not need to itemize deductions on Schedule A to claim it.

Take the total expense amount calculated on Form 2106 and transfer it to Schedule 1 (Form 1040), Additional Income and Adjustments to Income. This total from Form 2106 is entered on the line designated for employee business expenses.

Once the total is entered on Schedule 1, the completed Form 2106 must be attached to your Form 1040 when you file. The result of this process is a reduction in your adjusted gross income (AGI). A lower AGI can affect your eligibility for other tax credits and deductions, potentially leading to a lower overall tax bill.