Looking for a Pennsylvania Tax Forms And Templates? Download it for free!

If an employer does not reimburse

● Legal fees (except to recover back

Income Tax Employee Business

for expenses, compensation may be

wages), fines, penalties and bad

Expense Affidavit. Reviews of the

reduced by the allowable expenses.

debts;

department’s Tips For Successfully

However, if a reimbursement is more

Filing PA Schedule UE (REV-489) and

● Bribes, kickbacks, or other illegal

than the allowable expenses, the

Unreimbursed Allowable Employee

payments;

excess must be reported as taxable

Business Expenses For PA Personal

● Job hunting or other pursuit of

compensation on Line 1a.

Income Tax Purposes brochure (REV-

employment expenses;

637) should also be conducted prior to

EXAMPLE: Dave earned compensa-

● Malpractice insurance premiums,

completing PA-40 Schedule UE.

tion of $30,000. He incurred allowable

except when allowed in Part A;

vehicle and travel employee business

● Moving expenses, except when

LINE INSTRUCTIONS

e x p e n s e s o f $ 3 , 0 0 0 , a n d w a s

allowed in Part E;

reimbursed $3,500. He must complete

● Educational expenses, except as

a PA-40 Schedule UE. He includes

PA-40 SCHEDULE UE

allowed in Part F;

the excess $500 as compensation. His

SIDE 1

total net taxable compensation is

● Capital expenditures; and/or

$30,500.

● Expenses calculated at federal

per-diem rates.

IMPORTANT: Sole proprietors,

PART A, DIRECT EMPLOYEE

partners, shareholders, or other

BUSINESS EXPENSES

A separate PA-40 Schedule UE

self-employed individuals should not

must be filed for each employer

use PA-40 Schedule UE to claim

and each taxpayer. Spouses may

Direct employee business expenses

expenses.

not report joint expenses on a PA

are those paid directly or through

Schedule UE, even if filing jointly and

a withholding arrangement with an

CAUTION: Nonresidents must

even from the same employer. An

employer. These expenses are neces-

u se PA Sch e d u l e N R H to

incomplete schedule may result in

sary to perform or maintain a job.

apportion expenses for PA personal

delays in the processing of a return

Itemize the nature and amount of the

income tax purposes. Part-year

and/or denial of the expenses.

expenses claimed in Part A.

residents may only claim 100 percent

of unreimbursed business expenses if

Keep Your Records

LINE 1

the expenses were incurred only while

The department has the legal authority

providing services in Pennsylvania

to require evidence that the expenses

or while a PA resident. Include a state-

Enter the amount of union dues,

claimed on a PA Schedule UE are

ment indicating the method used to

assessments, and initiation fees paid

allowable for PA purposes. Keep all

determine the expenses for the period

if the amounts are:

necessary documents, receipts, vouch-

of residency (PA Schedule NRH may

ers and other records for at least four

● Paid as a condition of continued

also be used for this purpose).

years.

membership in the union, and

Non-Allowable Expenses

PA-40 Schedule UE - Side 1

membership is related directly to

Pennsylvania does not allow the

the job for which the expense is

Side 1 of the PA-40 Schedule UE is for

following business expenses, even if

claimed; or

the most common expenses claimed

allowed for federal purposes:

on PA income tax returns.

● A required payment of a wage

● Personal, living, or family expenses;

deduction under an agency shop

PA-40 Schedule UE - Side 2

● Dues to fraternal organizations,

agreement.

Side 2 of the PA-40 Schedule UE is for

professional societies, Chambers

reporting office or work area expenses,

LINE 2

of Commerce, or recreational club

moving expenses, education expenses

memberships;

and/or depreciation expenses claimed

Enter the amount paid for purchasing

● D u e s a n d su b scr i p ti o n s to

as unreimbursed business expenses

and maintaining uniforms and work

publications, including trade and

on PA income tax returns.

clothing used for the protection from

professional publications;

Taxpayers may wish to provide

bodily injury if the uniforms and cloth-

● Political candidate or campaign

with the PA-40 Schedule UE a

ing are both:

contributions;

copy of a letter from the employer

● Of a type specifically required by

● Charitable contributions;

verifying that expenses are required

the employer to be purchased as a

to be incurred to perform the duties of

● Commuting expenses – driving to

condition of continued employment;

the position for which the expenses are

and from work;

and

claimed and the method of any reim-

● Cost of meals while working late,

● Not adaptable to general usage.

bursement by the employer for those

unless while traveling away from

expenses. Form REV-757, Employer

home overnight on business;

LINE 3

Letter Template, should be completed

● Childcare or elderly care expenses;

by the employer for such purposes. In

● Life, disability income and health

Enter the amount paid for small tools

lieu of an employer letter, a taxpayer

insurance premiums;

and supplies that the employer does not

may provide a copy of the employer’s

employee expense reimbursement

provide, but are required to perform

● Contributions to deferred compen-

sation plans or other pension plans;

policy or Form REV-775, Personal

the duties of the job. Depreciation is

Form Rev-489 - Instructions For Pa-40 Schedule Ue - Individual Income Tax Return - 2016 Page 3

Related Articles

Related forms

Related Categories