padirectfile   Help - Filing Instructions

PA Schedule UE
Line 1B - Unreimbursed Employee Business Expenses - Long Form

What Unreimbursed Employee Business Expenses Does Pennsylvania Allow?

Allowable employee business expenses for PA purposes are similar, but not exactly the same, as expenses for federal purposes. An allowable PA employee business expense must be:

If your employer does not reimburse you, you may reduce your compensation by your allowable expenses.

Note: The Department has the legal authority to require evidence that the expenses you claim on a PA Schedule UE are allowable for PA purposes. The Department may ask that you substantiate the amount and nature of your business expenses. Keep your necessary documents, receipts, vouchers, and other records for at least four years. You must be able to prove that your expenses are ordinary, actual, reasonable, and necessary.

You did not incur an allowable business expense during the year if you:

If your reimbursement is more than your allowable expenses, you must report the excess as taxable compensation on Line 1a.

Sole proprietors, partners, shareholders, or other self-employed individuals do not use PA Schedule UE to claim expenses.

Nonresidents who earn compensation and incur allowable employee business expenses both within and outside Pennsylvania may need to complete and file a PA Schedule NRH, which is not allowable on padirectfile.

Pennsylvania does not allow the following expenses, even if allowed for federal purposes:

General Instructions

For detailed information, if you have a job or a profession in which you perform the same services, but receive Forms W-2 from more than one employer, review PA PIT GUIDE.

Part A. Business Travel Expenses

Vehicle Expenses: Standard Mileage Rate

Enter either:

If you cannot or do not file a Federal Form 2106 or Form 2106-EZ, follow the federal rules for determining your allowable expenses. The standard mileage allowance for the period of January 1, 2014 to December 31, 2014 is $.56 (56 cents).

Important: Commuting costs to and from any job are not allowable for PA purposes.

Vehicle Expenses: Actual
You may always claim your allowable actual expenses for PA purposes. Start with your federal form and adjust for PA purposes.

Pennsylvania does not follow the federal limitations on allowable expenses.

Optional Depreciation. You may use any generally accepted depreciation method. If using a different method for PA purposes, enter the method you used and the adjusted expense here. You may not use federal bonus depreciation.
Actual Vehicle Expenses will be calculated for you.

Other Business Travel Expenses
Enter the actual amount of these expenses that you incurred, or the amount from your Form 2106 or Form 2106-EZ.

Return to Help Index

Previous Topic    Next Topic