General States

What does Pennsylvania allow for the deduction for of unreimbursed employee expenses?

Contributed by KeriC, TaxPro Agent, FreeTaxUSA

Unlike the federal income tax return, an unreimbursed employee business expense qualifies for Pennsylvania purposes regardless of profession.

Here is an abbreviated list of expenses that generally qualify as unreimbursed employee expenses. See IRS Publication 529 for detailed information

Travel and mileage, including meals:
1. Parking, fees, tolls and transportation expenses incurred while in an overnight or business travel status.
2. Hotel or motel accommodation expenses incurred while in an overnight travel status.
3. Actual expenses you incurred for meals and entertainment expenses are 100 percent deductible on your Pennsylvania return. Exceptions apply while not in overnight traveling status See also Unreimbursed Business Expenses Mileage (pa.gov)
Certain cell phone uses:
1. Calls for business purposes when required by an employer.
2. For cell phones, type, coverage, and use should be reasonably calculated and in line with the employer’s business needs
3. Family plans, bundles, etc., are not reimbursable.
Uniforms
1. Purchase and maintenance costs of uniforms and work clothing to protect you from bodily injury are allowable only if:
  1. The uniforms and clothing are of a type specifically required by the employer to be purchased as a condition of continued employment, and.
  2. They’re not adaptable to general usage (street usage)
Small tools and office supplies
1. Small tools and supplies that your employer doesn't provide that you must have to perform the duties of your job.
Professional license fees
1. Trade, professional, or occupational licenses or fees required as a condition of employment. Malpractice insurance and fidelity bond premiums if required by law or by your employer.
Some moving expenses
1. To qualify, your move must be within or into Pennsylvania. Further, your new workplace must be at least 35 miles farther from your old home than your old workplace was from your old home
Certain educational costs are allowable only if:
1. The education is specifically required by law or by your employer and verified from your employer the education is to retain an established employment status or rate of compensation.
2. The education is not part of a program that would qualify you for a new occupation, trade, or business, even if you do not intend to enter that new occupation, trade, or business
3. You keep copies of your tuition bills
Union dues, agency fees or initiation fees
1. Allowable if one or both of the following is true:
  1. Payments are a condition of continued membership in a union and related directly to the job for which you're claiming the expense.
  2. Payments are a required wage deduction under an agency shop agreement.
Home office or work area expenses
1. The following three conditions must be met for the expense to be allowable:
  1. The job requires an employee to have a suitable work area.
  2. The employer does not provide a suitable work area.
  3. The home office is the employee's principal place of work.