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2016

Pennsylvania Department of Revenue

Instructions for PA-40 Schedule UE

Allowable Employee Business Expenses

PA-40 Schedule UE (11-16)

4. Necessary to enable the proper

FORM INSTRUCTIONS

WHAT’S NEW

performance of the duties of the

employment; and

IDENTIFICATION INFORMATION

Separate filing instructions for PA-40

Name of Taxpayer Claiming Tax

5. Directly related to performing

Schedule UE, Allowable Employee

Forgiveness

the duties of the occupation or

Business Expenses, have been

employment.

Enter the name of the taxpayer claim-

developed by the department.

ing the expenses. If a jointly filed return

IMPORTANT: 100 percent of the

and the expenses are claimed for the

Pennsylvania-allowable unreim-

GENERAL INFORMATION

spouse, enter the spouse’s name.

bursed employee business expenses

may be deducted. Pennsylvania law

Social Security Number

PURPOSE OF SCHEDULE

does not have federal expense and

Enter the Social Security number (SSN)

Use PA-40 Schedule UE to report

percentage accounting limitations and

of the primary taxpayer (name shown

unreimbursed employee business

thresholds.

first on the PA-40, Personal Income

expenses incurred in the performance

Tax Return) even if the expenses are

An allowable business expense did not

of the duties of the taxpayer’s job or

claimed for the spouse on a jointly filed

occur during the year if:

profession.

return.

● A fixed-mileage allowance or a

Refer to Chapter 7 of the PA PIT Guide

per-diem allowance was received

Employer’s Name

for additional information.

for the allowable business expense,

Enter the name of the employer for

and the employer did not include

which the expenses were incurred.

the allowance in compensation; or

RECORDING DOLLAR

Employer’s Address

● A l l o w a b l e

e x p e n s e s

w e r e

AMOUNTS

Enter the employer’s local address.

accounted to the employer and

the employer reimbursed the

Employer’s Identification Number

Show money amounts in whole-dollars

employee in the exact amount of

Enter the employer identification

only. Eliminate any amount less than

the expenses.

number from Box b of the W-2 for the

$0.50 and increase any amount that is

employer.

EXAMPLE: James is a regional

$0.50 or more to the next highest dollar.

manager for a chain of retail stores and

Duties of the Job

is required by his employer to drive his

Describe the duties of the job in which

WHO MUST COMPLETE

personal vehicle and visit each retail

the expenses were incurred.

location within his region at least one

PA-40 Schedule UE must be com-

time per month. James’ employer

Employer’s Telephone Number

reimburses him at a rate of $0.40 per

pleted and included with an originally

Enter the employer’s local telephone

mile and provides a lunch per diem

filed PA-40, Personal Income Tax

number.

of $8.00 per travel day. James is not

Return, for any taxpayer reporting

permitted to deduct a mileage expense

GENERAL INSTRUCTIONS

unreimbursed employee business

on his PA-40 Schedule UE for the dif-

expenses on Line 1b of the PA-40.

ference between the federal allowance

A l l o w a b l e e mp l o y e e b u si n e s s

and his employer’s reimbursement or

An amended PA Schedule UE must

expenses for PA purposes are similar

an expense for meals while traveling

be included with Schedule PA-40X

to, but not the same as, expenses for

to visit the retail locations within his

federal purposes. PA law only permits

to report any changes - increases

region unless his employer includes the

expenses required to perform the

or decreases in business expense

reimbursements in his Pennsylvania

duties of a job or profession.

amounts on PA Schedule UE that are

compensation.

discovered after an original or other

Allowable Pennsylvania employee

CAUTION: If an employer reim-

amended return is filed with the depart-

business expenses must be:

burses at a rate less than the

ment. Part III on Page 2 of Schedule

1. Ordinary, customary, and accepted

federal rate for the mileage expense

in the industry or occupation;

PA-40X must be completed to explain

or provides a fixed or per-diem reim-

any increase or decrease to the unre-

2. Actually paid while performing the

bursement for any expense, do not

duties of the employment;

imbursed employee business expenses

include such reimbursements in gross

reported on an amended PA-40,

3. Reasonable in amount and not

compensation. Do not claim such

Personal Income Tax Return.

excessive;

expenses on a PA-40 Schedule UE.

Form Rev-489 - Instructions For Pa-40 Schedule Ue - Individual Income Tax Return - 2016 Page 2

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