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

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1901710051
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE 05-19 (FI)
2019
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 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7a.
7b. Total business miles driven in 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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.
SIDE 1
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1901710051
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE 05-19 (FI)
2019
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 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7a.
7b. Total business miles driven in 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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.
SIDE 1
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1901810059
PA SCHEDULE UE
Allowable Employee Business Expenses
PA-40 UE 05-19 (FI)
2019
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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2019
Pennsylvania Department of Revenue
Instructions for PA-40 Schedule UE
Allowable Employee Business Expenses
PA-40 UE IN 05-19
EMPLOYER’S NAME
WHAT’S NEW
Enter the name of the employer for which the expenses
were incurred.
Meals and entertainment expenses have been divided into
separate lines of reporting in the Business Travel Expenses
EMPLOYER’S ADDRESS
section. Meals expense will be reported on Line 13 and en-
Enter the employer’s local address.
tertainment expenses will be reported on Line 14. The sub-
sequent line numbers were revised as a result of the
EMPLOYER’S IDENTIFICATION NUMBER
inserted Line 14.
Enter the employer identification number from Box b of the
W-2 for the employer.
GENERAL INFORMATION
DUTIES OF THE JOB
Describe the duties of the job in which the expenses were
PURPOSE OF SCHEDULE
incurred.
Use PA-40 Schedule UE to report unreimbursed employee
business expenses incurred in the performance of the duties
EMPLOYER’S TELEPHONE NUMBER
of the taxpayer’s job or profession.
Enter the employer’s local telephone number.
Refer to the PA Personal Income Tax Guide – Gross Com-
pensation section for additional information.
GENERAL INSTRUCTIONS
Allowable employee business expenses for PA purposes are
RECORDING DOLLAR AMOUNTS
similar to, but not the same as, expenses for federal pur-
Show money amounts in whole-dollars only. Eliminate any
poses. PA law only permits expenses required to perform
the duties of a job or profession.
amount less than $0.50 and increase any amount that is
$0.50 or more to the next highest dollar.
Allowable Pennsylvania employee business expenses must
be:
WHO MUST COMPLETE
1. Ordinary, customary, and accepted in the industry or oc-
cupation;
PA-40 Schedule UE must be completed and included with
an originally filed PA-40, Personal Income Tax Return, for
2. Actually paid while performing the duties of the employ-
any taxpayer reporting unreimbursed employee business
ment;
expenses on Line 1b of the PA-40.
3. Reasonable in amount and not excessive;
An amended PA Schedule UE must be included with Sched-
4. Necessary to enable the proper performance of the du-
ule PA-40 X to report any changes - increases or decreases
ties of the employment; and
in business expense amounts on PA Schedule UE that are
5. Directly related to performing the duties of the occupa-
discovered after an original or other amended return is filed
tion or employment.
with the department. Section III on Page 2 of Schedule PA-
40 X must be completed to explain any increase or decrease
IMPORTANT: 100 percent of the Pennsylvania-allow-
to the unreimbursed employee business expenses reported
able unreimbursed employee business expenses may
on an amended PA-40, Personal Income Tax Return.
be deducted. Pennsylvania law does not have federal ex-
pense and percentage accounting limitations and thresh-
olds.
FORM INSTRUCTIONS
An allowable business expense did not occur during the
IDENTIFICATION INFORMATION
year if:
NAME OF TAXPAYER CLAIMING EXPENSES
● A fixed-mileage allowance; a fixed expense reimburse-
Enter the name of the taxpayer claiming the expenses. If a
ment amount; a daily, weekly, monthly or yearly expense
jointly filed return and the expenses are claimed for the
allowance reimbursement; or a per-diem allowance was
spouse, enter the spouse’s name.
received for the allowable business expense, and the
employer did not include the allowance in compensa-
SOCIAL SECURITY NUMBER
tion; or
Enter the Social Security number (SSN) of the primary tax-
payer (name shown first on the PA-40, Personal Income Tax
● Allowable expenses were accounted to the employer
Return) even if the expenses are claimed for the spouse on
and the employer reimbursed the employee in the exact
a jointly filed return.
amount of the expenses.
www.revenue.pa.gov
PA-40 UE
1
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EXAMPLE: James is a regional manager for a chain of retail
● Bribes, kickbacks, or other illegal payments;
stores and is required by his employer to drive his personal
● Job hunting or other pursuit of employment expenses;
vehicle and visit each retail location within his region at least
● Malpractice insurance premiums, except when allowed
one time per month. James’ employer reimburses him at a
rate of $0.40 per mile and provides a lunch per diem of $8.00
in Section I;
per travel day. James is not permitted to deduct a mileage ex-
● Moving expenses, except when allowed in Section V;
pense on his PA-40 Schedule UE for the difference between
● Educational expenses, except as allowed in Section VI;
the federal allowance and his employer’s reimbursement or
an expense for meals while traveling to visit the retail loca-
● Capital expenditures; and/or
tions within his region unless his employer includes the reim-
● Expenses calculated at federal per-diem rates.
bursements in his Pennsylvania compensation.
A separate PA-40 Schedule UE must be filed for each
CAUTION: If an employer reimburses at a rate less
employer and each taxpayer. Spouses may not report
than the federal rate for the mileage expense or pro-
joint expenses on a PA Schedule UE, even if filing jointly and
vides a fixed or per-diem reimbursement for any expense,
even from the same employer. An incomplete schedule may
do not include such reimbursements in gross compensation.
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
Side 1 of the PA-40 Schedule UE is for the most common
complete a PA-40 Schedule UE. He includes the excess
$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-
CAUTION: Nonresidents must use PA Schedule NRH
bursed business expenses on PA income tax returns.
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-
ships;
Personal Income Tax Purposes brochure (REV-637) should
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
● Contributions to deferred compensation plans or other
or through a withholding arrangement with an employer.
pension plans;
These expenses are necessary to perform or maintain a job.
Itemize the nature and amount of the expenses claimed in
● Legal fees (except to recover back wages), fines, penal-
ties and bad debts;
Section I.
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PA-40 UE
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ACTUAL VEHICLE EXPENSES
LINE 1
If using the actual vehicle expense method to calculate busi-
Enter the amount of union dues, assessments, and initiation
ness travel expenses, Complete Lines 7a through 10.
fees paid if the amounts are:
IMPORTANT: If more than one vehicle was used for
● Paid as a condition of continued membership in the
business purposes, Lines 7a through 10 must be com-
union, and membership is related directly to the job for
pleted and included on a separate Schedule UE for each
which the expense is claimed; or
vehicle driven. In place of separate Schedules UE, a state-
● A required payment of a wage deduction under an
ment may be included that shows the amounts for each ve-
agency shop agreement.
hicle for Lines 7a through 10. Add the Line 10 total expense
amount from each vehicle and include the result in the
amount for Line 15, Total Business Travel Expenses.
LINE 2
LINE 7a
Enter the amount paid for purchasing and maintaining uni-
forms and work clothing used for the protection from bodily
Enter the total vehicle miles driven in 2019 including any
injury if the uniforms and clothing are both:
miles driven for a vehicle that was rented during the time a
● Of a type specifically required by the employer to be pur-
regular vehicle was being repaired.
chased as a condition of continued employment; and
● Not adaptable to general usage.
LINE 7b
LINE 3
Enter the total business miles driven in 2019 including any
business miles driven for a vehicle that was rented during
Enter the amount paid for small tools and supplies that the
the time a regular vehicle was being repaired. Do not include
employer does not provide, but are required to perform the
commuting miles from home to workplace and workplace to
duties of the job. Depreciation is the annual deduction that
home in the total business miles driven.
must be taken to recover the cost of business property hav-
ing a useful life beyond the taxable year. If any of these tools
LINE 7c
or supplies has a useful life of more than one year, depreci-
ate or amortize the cost in Section VII.
Divide Line 7b by Line 7a and enter the result rounded to
six decimal places.
LINE 4
LINE 8a
Enter the amount of trade, professional or occupational li-
cense fees required as a condition of employment as well
Enter the amount of the total expenses for gasoline, oil, re-
as any malpractice insurance and fidelity bond premiums
pairs, insurance, tires, license plates, vehicle registration,
where required by law or by the employer.
car washes and other similar items. If the vehicle driven for
business purposes was rented or leased, enter the cost of
renting. Also enter the cost of temporary rentals for vehicles
LINE 5
rented during the time a regular vehicle was being repaired.
Add Lines 1 through 4 and enter the result.
Do not enter temporary vehicle rentals included in Line 11.
SECTION II
LINE 8b
Enter the amount of depreciation expense for the vehicle.
BUSINESS TRAVEL EXPENSES
Federal vehicle depreciation limits do not apply for PA per-
sonal income tax purposes. In addition, PA Section 179 ex-
LINE 6
pense is limited to $25,000 per return. You must include a
statement showing the description of the vehicle, date ac-
Enter the total business miles and multiply by the federal
quired, cost or other basis, depreciation method, Section
mileage allowance to calculate the allowable business
179 expense (if taken), accumulated depreciation previously
mileage expense.
taken, and the depreciation expense for the year. Do not re-
port the depreciation expense for vehicles in Section VII.
CAUTION: Depreciation may not be claimed on any
Refer to Informational Notice Personal Income Tax 2012-05
vehicle on which the standard mileage rate method is
- IRC Section 179 Expense Deductions for additional infor-
used.
mation.
COMMUTING EXPENSES
The costs of public transportation or driving a car between
LINE 9
a home and the main place of work may not be claimed.
These are personal commuting expenses. Commuting ex-
Add the amounts on Lines 8a and 8b and enter the total
penses may not be deducted no matter how far a home is
here.
from the regular place of work. Commuting costs between
different jobs for different employers are also not allowable.
LINE 10
For tradesmen, commuting costs also include mileage for
any job 35 miles or fewer from the closer of the union hall or
Multiply Line 9 by the ratio on Line 7c and enter the result
personal residence to the jobsite.
here. If more than one vehicle was used for business
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