Form PA-40 Schedule UE "Allowable Employee Business Expenses" - Pennsylvania

What Is Form PA-40 Schedule UE?

This is a legal form that was released by the Pennsylvania Department of Revenue - a government authority operating within Pennsylvania.The document is a supplement to Form PA-40, Pennsylvania Income Tax Return. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on September 1, 2019;
  • The latest edition provided by the Pennsylvania Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form PA-40 Schedule UE by clicking the link below or browse more documents and templates provided by the Pennsylvania Department of Revenue.

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2001710058
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE (EX) MOD 08-20 (FI)
2020
PA Department of Revenue
OFFICIAL USE ONLY
START
Name of taxpayer claiming expenses
Social Security Number (shown first)
Employer’s Name
Employer’s address
Employer Identification Number
Describe the duties of the job in which you incurred these expenses
Employer’s Telephone Number
CAUTION: You must complete a separate schedule for each job or position. Spouses may not file joint PA Schedule(s) UE.
SECTION I – Direct Employee Business Expenses.
1. Union dues. List union name(s) and amount(s) paid. Enter the total. Submit additional sheets, if needed.
Name of union(s) and amount(s).
1.
2. Work clothes and uniforms. Needed for your employment and not suitable for everyday use.
Description:
2.
3. Small tools and supplies. Needed for your employment and not provided by your employer.
Description:
3.
4. Professional license fees, malpractice insurance and fidelity bond premiums. Required as a
condition of your employment.
Description:
4.
5. Total Direct Employee Business Expenses. Add Lines 1 through 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
SECTION II – Business Travel Expenses.
Vehicle Expenses: Standard Mileage Rate.
6. Enter your total business miles
and multiply by the federal standard mileage rate. . . . 6.
Vehicle Expenses: Actual Vehicle Expenses.
7a. Total vehicle miles driven in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7a.
7b. Total business miles driven in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b.
7c. Business use ratio. Divide Line 7b by Line 7a. See the Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..7c.
8a. Gasoline, oil, repairs, vehicle insurance, vehicle rentals, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a.
8b. Depreciation. See the Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b.
9. Total vehicle expenses. Add Lines 8a and 8b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Allowable Actual Vehicle Expenses. Multiply Line 9 by Line 7c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Other Business Travel Expenses.
11. Parking fees, tolls and transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Travel expenses while away from home overnight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Meals expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Entertainment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Total Business Travel Expenses. Add Lines 6 or 10 and Lines 11, 12, 13 and 14. . . . . . . . . . . . . . . . . . . . 15.
SECTION III – Miscellaneous Expenses. Itemize your additional expenses.
16. Total Miscellaneous Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
Total Allowable PA Employee Business Expenses. You must account for reimbursements, if any.
A. Direct Expenses from Line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A.
B. Business Travel Expenses from Line 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B.
C. Miscellaneous Expenses from Line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C.
D. Office or Work Area Expenses from Line 17, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D.
E. Moving Expenses from Line 20, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E.
F. Education Expenses from Line 24, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F.
G. Total Depreciation Expenses from Line 25, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G.
H. Total Allowable Employee Business Expenses. Add Lines A through G. . . . . . . . . . . . . . . . . . . . . . . . . . . H.
I. Reimbursements. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I.
J. Net expense or reimbursement. Subtract Line I from Line H. Enter the difference, and: . . . . . . . . . . . . . . J.
If Line H is MORE than Line I, include on Line 1b, on your PA-40.
If Line I is MORE than Line H, include the excess on Line 1a, on your PA-40.
Nonresidents and part-year residents may also need to complete PA Schedule NRH. See instructions.
2001710058
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SIDE 1
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2001710058
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE (EX) MOD 08-20 (FI)
2020
PA Department of Revenue
OFFICIAL USE ONLY
START
Name of taxpayer claiming expenses
Social Security Number (shown first)
Employer’s Name
Employer’s address
Employer Identification Number
Describe the duties of the job in which you incurred these expenses
Employer’s Telephone Number
CAUTION: You must complete a separate schedule for each job or position. Spouses may not file joint PA Schedule(s) UE.
SECTION I – Direct Employee Business Expenses.
1. Union dues. List union name(s) and amount(s) paid. Enter the total. Submit additional sheets, if needed.
Name of union(s) and amount(s).
1.
2. Work clothes and uniforms. Needed for your employment and not suitable for everyday use.
Description:
2.
3. Small tools and supplies. Needed for your employment and not provided by your employer.
Description:
3.
4. Professional license fees, malpractice insurance and fidelity bond premiums. Required as a
condition of your employment.
Description:
4.
5. Total Direct Employee Business Expenses. Add Lines 1 through 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
SECTION II – Business Travel Expenses.
Vehicle Expenses: Standard Mileage Rate.
6. Enter your total business miles
and multiply by the federal standard mileage rate. . . . 6.
Vehicle Expenses: Actual Vehicle Expenses.
7a. Total vehicle miles driven in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7a.
7b. Total business miles driven in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b.
7c. Business use ratio. Divide Line 7b by Line 7a. See the Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..7c.
8a. Gasoline, oil, repairs, vehicle insurance, vehicle rentals, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a.
8b. Depreciation. See the Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b.
9. Total vehicle expenses. Add Lines 8a and 8b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Allowable Actual Vehicle Expenses. Multiply Line 9 by Line 7c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Other Business Travel Expenses.
11. Parking fees, tolls and transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Travel expenses while away from home overnight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Meals expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Entertainment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Total Business Travel Expenses. Add Lines 6 or 10 and Lines 11, 12, 13 and 14. . . . . . . . . . . . . . . . . . . . 15.
SECTION III – Miscellaneous Expenses. Itemize your additional expenses.
16. Total Miscellaneous Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
Total Allowable PA Employee Business Expenses. You must account for reimbursements, if any.
A. Direct Expenses from Line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A.
B. Business Travel Expenses from Line 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B.
C. Miscellaneous Expenses from Line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C.
D. Office or Work Area Expenses from Line 17, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D.
E. Moving Expenses from Line 20, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E.
F. Education Expenses from Line 24, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F.
G. Total Depreciation Expenses from Line 25, on Side 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G.
H. Total Allowable Employee Business Expenses. Add Lines A through G. . . . . . . . . . . . . . . . . . . . . . . . . . . H.
I. Reimbursements. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I.
J. Net expense or reimbursement. Subtract Line I from Line H. Enter the difference, and: . . . . . . . . . . . . . . J.
If Line H is MORE than Line I, include on Line 1b, on your PA-40.
If Line I is MORE than Line H, include the excess on Line 1a, on your PA-40.
Nonresidents and part-year residents may also need to complete PA Schedule NRH. See instructions.
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2001810056
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE (EX) MOD 08-20 (FI)
2020
PA Department of Revenue
OFFICIAL USE ONLY
START
Name of taxpayer claiming expenses
Social Security Number (shown first)
SECTION IV – Office or Work Area Expenses. You must answer ALL three questions or the Department will disallow your expenses.
D1. Does your employer require you to maintain a suitable work area away from the employer’s premises?
YES
NO
D2. Is this work area the principal place where you perform the duties of your employment?
YES
NO
D3. Do you use this work area regularly and exclusively to perform the duties of your employment?
YES
NO
If you answer YES to ALL three questions, continue. If you answer NO to ANY question, you may not claim office or work area expenses.
Actual Office or Work Area Expenses. Enter expenses for the entire year and then calculate the business portion.
a. Depreciation expense (homeowners only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a.
b. Real estate taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.
c. Mortgage interest (homeowners only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c.
d. Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sales Tax License Number:
d.
e. Property insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e.
f. Property maintenance expenses from statement. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f.
g. Other apportionable expenses from statement. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g.
h. Rent (renters only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h.
i. Total. Add Lines a through h. Enter the total here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i.
j. Business percentage of property. Divide the total square footage of your work area by the total square
%
footage of your entire property. Round to 2 decimal places. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
j.
k. Apportioned expenses. Multiply Line i by the percentage on Line j. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . k.
l. Total office supplies from statement. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
l.
17. Total Office or Work Area Expenses. Add Lines k and l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
SECTION V – Moving Expenses.
Distance Test.
E1. Enter the number of miles from your old home to your new workplace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
miles
E2. Enter the number of miles from your old home to your old workplace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
miles
E3. Subtract Line E2 from Line E1 and enter the difference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
miles
If Line E3 is 35 miles or more, continue. If it is not at least 35 miles, you may not claim any moving expenses.
18. Transportation expenses in moving household goods and personal effects. . . . . . . . . . . . . . . . . . . . . . . . . . 18.
19. Travel, meals, and lodging expenses during the actual move from your old home to your new home. . . . . . 19.
20. Total Moving Expenses. Add Lines 18 and 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
SECTION VI – Education Expenses. You must answer ALL three questions or the Department will disallow your expenses.
F1. Did your employer (or law) require that you obtain this education to retain your present position or job?
YES
NO
If you answer YES, continue. If you answer NO, you may not claim education expenses.
F2. Did you need this education to meet the entry level or minimum requirements to obtain your job?
YES
NO
F3. Will this education, program or course of study qualify you for a new business or profession?
YES
NO
If you answer NO to questions F2 and F3, continue. If you answer YES to either question, you may not claim education expenses.
Name of college, university or educational institution:
Course of study:
21. Tuition or fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.
22. Course materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.
23 Travel expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
24. Total Education Expenses. Add Lines 21 through 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.
SECTION VII – Depreciation Expenses. PA law does not allow any federal bonus depreciation and limits IRC Section 179 expensing to $25,000.
(a) Description of property
(b) Date acquired
(c) Cost or other basis
(d) Depreciation method
(e) Section 179 expense
(f) Depreciation expenses
25. Total Depreciation Expenses. Add the amounts from columns (e) and (f). . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.
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2020
Instructions for PA-40 Schedule UE
Allowable Employee Business Expenses
PA-40 UE IN 08-20
DUTIES OF THE JOB
GENERAL INFORMATION
Describe the duties of the job in which the expenses were
incurred.
PURPOSE OF SCHEDULE
Use PA-40 Schedule UE to report unreimbursed employee
EMPLOYER’S TELEPHONE NUMBER
business expenses incurred in the performance of the duties
Enter the employer’s local telephone number.
of the taxpayer’s job or profession.
Refer to the PA Personal Income Tax Guide – Gross Com-
GENERAL INSTRUCTIONS
pensation section for additional information.
Allowable employee business expenses for PA purposes are
similar to, but not the same as, expenses for federal pur-
RECORDING DOLLAR AMOUNTS
poses. PA law only permits expenses required to perform
the duties of a job or profession.
Show money amounts in whole-dollars only. Eliminate any
amount less than $0.50 and increase any amount that is
Allowable Pennsylvania employee business expenses must
$0.50 or more to the next highest dollar.
be:
1. Ordinary, customary, and accepted in the industry or oc-
WHO MUST COMPLETE
cupation;
2. Actually paid while performing the duties of the employ-
PA-40 Schedule UE must be completed and included with
ment;
an originally filed PA-40, Personal Income Tax Return, for
any taxpayer reporting unreimbursed employee business
3. Reasonable in amount and not excessive;
expenses on Line 1b of the PA-40.
4. Necessary to enable the proper performance of the du-
An amended PA Schedule UE must be included with Sched-
ties of the employment; and
ule PA-40 X to report any changes - increases or decreases
5. Directly related to performing the duties of the occupa-
in business expense amounts on PA Schedule UE that are
tion or employment.
discovered after an original or other amended return is filed
IMPORTANT: 100 percent of the Pennsylvania-allow-
with the department. Section III on Page 2 of Schedule PA-
able unreimbursed employee business expenses may
40 X must be completed to explain any increase or decrease
be deducted. Pennsylvania law does not have federal ex-
to the unreimbursed employee business expenses reported
pense and percentage accounting limitations and thresh-
on an amended PA-40, Personal Income Tax Return.
olds.
FORM INSTRUCTIONS
An allowable business expense did not occur during the
year if:
IDENTIFICATION INFORMATION
● A fixed-mileage allowance; a fixed expense reimburse-
NAME OF TAXPAYER CLAIMING EXPENSES
ment amount; a daily, weekly, monthly or yearly expense
Enter the name of the taxpayer claiming the expenses. If a
allowance reimbursement; or a per-diem allowance was
jointly filed return and the expenses are claimed for the
received for the allowable business expense, and the
spouse, enter the spouse’s name.
employer did not include the allowance in compensa-
tion; or
SOCIAL SECURITY NUMBER
● Allowable expenses were accounted to the employer
Enter the Social Security number (SSN) of the primary tax-
and the employer reimbursed the employee in the exact
payer (name shown first on the PA-40, Personal Income Tax
amount of the expenses.
Return) even if the expenses are claimed for the spouse on
a jointly filed return.
EXAMPLE: James is a regional manager for a chain of retail
stores and is required by his employer to drive his personal
EMPLOYER’S NAME
vehicle and visit each retail location within his region at least
Enter the name of the employer for which the expenses
one time per month. James’ employer reimburses him at a
were incurred.
rate of $0.40 per mile and provides a lunch per diem of $8.00
EMPLOYER’S ADDRESS
per travel day. James is not permitted to deduct a mileage ex-
pense on his PA-40 Schedule UE for the difference between
Enter the employer’s local address.
the federal allowance and his employer’s reimbursement or
EMPLOYER’S IDENTIFICATION NUMBER
an expense for meals while traveling to visit the retail loca-
Enter the employer identification number from Box b of the
tions within his region unless his employer includes the reim-
W-2 for the employer.
bursements in his Pennsylvania compensation.
www.revenue.pa.gov
PA-40 UE
1
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CAUTION: If an employer reimburses at a rate less
A separate PA-40 Schedule UE must be filed for each
than the federal rate for the mileage expense or pro-
employer and each taxpayer. Spouses may not report
vides a fixed or per-diem reimbursement for any expense,
joint expenses on a PA Schedule UE, even if filing jointly and
do not include such reimbursements in gross compensation.
even from the same employer. An incomplete schedule may
Do not claim such expenses on a PA-40 Schedule UE.
result in delays in the processing of a return and/or denial
of the expenses.
If an employer does not reimburse for expenses, compen-
sation may be reduced by the allowable expenses. How-
KEEP YOUR RECORDS
ever, if a reimbursement is more than the allowable
The department has the legal authority to require evidence
expenses, the excess must be reported as taxable compen-
that the expenses claimed on a PA Schedule UE are allow-
sation on Line 1a.
able for PA purposes. Keep all necessary documents, re-
EXAMPLE: Dave earned compensation of $30,000. He in-
ceipts, vouchers and other records for at least four years.
curred allowable vehicle and travel employee business ex-
PA-40 SCHEDULE UE - SIDE 1
penses of $3,000, and was reimbursed $3,500. He must
complete a PA-40 Schedule UE. He includes the excess
Side 1 of the PA-40 Schedule UE is for the most common
$500 as compensation. His total net taxable compensation
expenses claimed on PA income tax returns.
is $30,500.
PA-40 SCHEDULE UE - SIDE 2
IMPORTANT: Sole proprietors, partners, sharehold-
Side 2 of the PA-40 Schedule UE is for reporting office or
ers, or other self-employed individuals should not use
work area expenses, moving expenses, education ex-
PA-40 Schedule UE to claim expenses.
penses and/or depreciation expenses claimed as unreim-
bursed business expenses on PA income tax returns.
CAUTION: Nonresidents must use PA Schedule NRH
to apportion expenses for PA personal income tax pur-
Taxpayers may wish to provide with the PA-40 Sched-
poses. Part-year residents may only claim 100 percent of
ule UE a copy of a letter from the employer verifying
unreimbursed business expenses if the expenses were in-
that expenses are required to be incurred to perform the du-
curred only while providing services in Pennsylvania or while
ties of the position for which the expenses are claimed and
a PA resident. Include a statement indicating the method
the method of any reimbursement by the employer for those
used to determine the expenses for the period of residency
expenses. Form REV-757, Employer Letter Template,
(PA Schedule NRH may also be used for this purpose).
should be completed by the employer for such purposes. In
NON-ALLOWABLE EXPENSES
lieu of an employer letter, a taxpayer may provide a copy of
Pennsylvania does not allow the following business ex-
the employer’s employee expense reimbursement policy or
penses, even if allowed for federal purposes:
Form REV-775, Personal Income Tax Employee Business
● Personal, living, or family expenses;
Expense Affidavit. Reviews of the department’s Tips For
Successfully Filing PA Schedule UE (REV-489) and Unre-
● Dues to fraternal organizations, professional societies,
imbursed Allowable Employee Business Expenses For PA
Chambers of Commerce, or recreational club member-
Personal Income Tax Purposes brochure (REV-637) should
ships;
also be conducted prior to completing PA-40 Schedule UE.
● Dues and subscriptions to publications, including trade
and professional publications;
LINE INSTRUCTIONS
● Political candidate or campaign contributions;
● Charitable contributions;
PA-40 SCHEDULE UE, SIDE 1
● Commuting expenses – driving to and from work;
● Cost of meals while working late, unless while traveling
SECTION I
away from home overnight on business;
● Childcare or elderly care expenses;
DIRECT EMPLOYEE BUSINESS EXPENSES
● Life, disability income and health insurance premiums;
Direct employee business expenses are those paid directly
or through a withholding arrangement with an employer.
● Contributions to deferred compensation plans or other
These expenses are necessary to perform or maintain a job.
pension plans;
Itemize the nature and amount of the expenses claimed in
● Legal fees (except to recover back wages), fines, penal-
Section I.
ties and bad debts;
● Bribes, kickbacks, or other illegal payments;
LINE 1
● Job hunting or other pursuit of employment expenses;
Enter the amount of union dues, assessments, and initiation
● Malpractice insurance premiums, except when allowed
fees paid if the amounts are:
in Section I;
● Paid as a condition of continued membership in the
● Moving expenses, except when allowed in Section V;
union, and membership is related directly to the job for
● Educational expenses, except as allowed in Section VI;
which the expense is claimed; or
● Capital expenditures; and/or
● A required payment of a wage deduction under an
● Expenses calculated at federal per-diem rates.
agency shop agreement.
2
PA-40 UE
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amount from each vehicle and include the result in the
LINE 2
amount for Line 15, Total Business Travel Expenses.
Enter the amount paid for purchasing and maintaining uni-
LINE 7a
forms and work clothing used for the protection from bodily
injury if the uniforms and clothing are both:
Enter the total vehicle miles driven in 2020 including any
● Of a type specifically required by the employer to be pur-
miles driven for a vehicle that was rented during the time a
chased as a condition of continued employment; and
regular vehicle was being repaired.
● Not adaptable to general usage.
LINE 7b
LINE 3
Enter the total business miles driven in 2020 including any
Enter the amount paid for small tools and supplies that the
business miles driven for a vehicle that was rented during
employer does not provide, but are required to perform the
the time a regular vehicle was being repaired. Do not include
duties of the job. Depreciation is the annual deduction that
commuting miles from home to workplace and workplace to
must be taken to recover the cost of business property hav-
home in the total business miles driven.
ing a useful life beyond the taxable year. If any of these tools
or supplies has a useful life of more than one year, depreci-
LINE 7c
ate or amortize the cost in Section VII.
Divide Line 7b by Line 7a and enter the result rounded to
LINE 4
six decimal places.
Enter the amount of trade, professional or occupational li-
LINE 8a
cense fees required as a condition of employment as well
as any malpractice insurance and fidelity bond premiums
Enter the amount of the total expenses for gasoline, oil, re-
where required by law or by the employer.
pairs, insurance, tires, license plates, vehicle registration,
car washes and other similar items. If the vehicle driven for
LINE 5
business purposes was rented or leased, enter the cost of
renting. Also enter the cost of temporary rentals for vehicles
Add Lines 1 through 4 and enter the result.
rented during the time a regular vehicle was being repaired.
Do not enter temporary vehicle rentals included in Line 11.
SECTION II
LINE 8b
BUSINESS TRAVEL EXPENSES
Enter the amount of depreciation expense for the vehicle.
LINE 6
Federal vehicle depreciation limits do not apply for PA per-
sonal income tax purposes. In addition, PA Section 179 ex-
Enter the total business miles and multiply by the federal
pense is limited to $25,000 per return. You must include a
mileage allowance to calculate the allowable business
statement showing the description of the vehicle, date ac-
mileage expense.
quired, cost or other basis, depreciation method, Section
179 expense (if taken), accumulated depreciation previously
CAUTION: Depreciation may not be claimed on any
taken, and the depreciation expense for the year. Do not re-
vehicle on which the standard mileage rate method is
port the depreciation expense for vehicles in Section VII.
used.
Refer to Informational Notice Personal Income Tax 2012-05
COMMUTING EXPENSES
- IRC Section 179 Expense Deductions for additional infor-
The costs of public transportation or driving a car between
mation.
a home and the main place of work may not be claimed.
These are personal commuting expenses. Commuting ex-
LINE 9
penses may not be deducted no matter how far a home is
from the regular place of work. Commuting costs between
Add the amounts on Lines 8a and 8b and enter the total
different jobs for different employers are also not allowable.
here.
For tradesmen, commuting costs also include mileage for
any job 35 miles or fewer from the closer of the union hall or
LINE 10
personal residence to the jobsite.
Multiply Line 9 by the ratio on Line 7c and enter the result
ACTUAL VEHICLE EXPENSES
here. If more than one vehicle was used for business
If using the actual vehicle expense method to calculate busi-
purposes, add the amounts from Line 10 for each vehicle
ness travel expenses, Complete Lines 7a through 10.
reported on separate Schedules UE (or separate statement)
and include the total from all vehicles in the amount reported
IMPORTANT: If more than one vehicle was used for
on Section II, Line 15, Total Business Travel Expenses.
business purposes, Lines 7a through 10 must be com-
pleted and included on a separate Schedule UE for each
OTHER BUSINESS TRAVEL EXPENSES
vehicle driven. In place of separate Schedules UE, a state-
ment may be included that shows the amounts for each ve-
Enter the actual amount of these expenses that were in-
hicle for Lines 7a through 10. Add the Line 10 total expense
curred.
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PA-40 UE
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