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A PA-40 Schedule C may be used

determined on a fixed rate or per-diem

ACTUAL OFFICE OR WORK

to report the allocated business

basis.

AREA EXPENSES

expenses of a statutory employee.

Enter “See Attached Schedule C” in

LINE J

Enter the actual expenses incurred if

the Miscellaneous Expenses descrip-

claiming office or work area expenses

tion line along with the total allocated

Determine the net expense reimburse-

on this schedule. Include statements

expenses. Include a copy of the PA-40

ment by subtracting Line I from Line H.

detailing property maintenance and

Schedule C to support the amount of

Report the amount as:

other apportionable expenses from

expenses allocated to the PA-40

● Unreimbursed employee business

Lines f and g.

Schedule UE. The allocated expense

expenses on Line 1b of the PA-40,

PA-40 Schedule C should include

Personal Income Tax Return, if

LINE a

“Statutory Employee Expenses” as the

Line H is more than Line I; or

main business activity on Line A and

● Additional compensation on Line

should not include income on Lines 1

Enter the depreciation expense for a

1a of the PA-40, Personal Income

through 5 of the schedule as the

home only. Do not include depreciation

Tax Return, if Line I is more than

income will be reported on PA-40

for furniture and fixtures.

Line H.

Schedule W-2S. A separate PA-40

Schedule C for any other business

LINE b

CAUTION: Nonresident or part-

income and expenses may also need

year residents who earned

to be completed for any related non-

Enter the total amount of real estate

income and incurred expenses within

statutory employee activity.

taxes paid.

and outside Pennsylvania must

complete PA Schedule NRH. Report

LINE 15

LINE c

the amount on Line H of the PA-40

Schedule UE on Line 13 of Section D

Add the miscellaneous expenses listed

Enter the total amount of mortgage

of the PA-40 Schedule NRH. Include

and enter the result.

interest paid for a home only.

PA-40 Schedule NRH with the PA-40,

If there are no expenses for

Personal Income Tax Return.

LINE d

an office or work area (Part D),

moving (Part E), education (Part F), or

PA-40 SCHEDULE UE

Enter the total amount of utilities for

depreciation (Part G), Skip Side 2 of

SIDE 2

gas, electric, fuel oil, kerosene, steam,

the PA-40 Schedule UE and complete

and/or telephone.

Lines H through J of the Schedule.

PART D, OFFICE OR WORK

CAUTION: Certain utilities, which

TOTAL ALLOWABLE PA

are not subject to sales and use

AREA EXPENSES

EMPLOYEE BUSINESS

tax when purchased exclusively for

EXPENSES

residential use, become subject to

Office or work area expenses may be

sales and use tax when used for

claimed when an employer does not

LINES A THROUGH G

commercial purposes. If including

provide an employee with a suitable

electricity, natural gas, fuel oil, or

work area and the answer to each of

Complete Lines A through G by enter-

kerosene in the calculation of home

the following questions is YES:

ing the amounts of allowable expenses

office expense, use tax on the prorated

D1. Does your employer require you,

from each completed part of PA-40

expense amount should be reported

as a condition of employment,

Schedule UE.

Line 25 of the PA-40, PA-40, Personal

to maintain a suitable work

Income Tax Return.

area away from the employer's

LINE H

premises?

LINE e

D2. Is this work area the principal

Add Lines A through G and enter the

result.

place where you perform the

Enter the amount paid for property

duties of your employment?

insurance.

CAUTION: Nonresident or part-

D3. Do you use this work area regu-

year residents who earned

LINE f

larly to perform the duties of your

income and incurred expenses within

employment?

and outside Pennsylvania must

Enter the amount paid for property

complete PA Schedule NRH.

If an employer provides a suitable work

maintenance expenses. Include a

area, or the answer to one or more of

statement listing the expenses by type

LINE I

the above questions is NO, office or

and amount. Do not include capital

work area expenses cannot be claimed.

expenditures that improve the useful

If an employer included the reimburse-

life or value of the property.

CAUTION:

The

department

ment in PA-taxable compensation on

does not permit the use of the

Form W-2, do not enter that reimburse-

LINE g

federal safe harbor deduction for a

ment here. If the employer did not

home office or work area. Actual ex-

include the reimbursement on Form

penses must be used to determine the

Enter the amount of other expenses

W-2, enter the amount received from

the employer for reimbursements not

amount of the deduction.

related to the property. Do not include

Form Rev-489 - Instructions For Pa-40 Schedule Ue - Individual Income Tax Return - 2016 Page 5

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