Recent posts have discussed the PA Dept. of Revenue\u2019s (DOR) efforts to deny Sch. UE-1 expenses that employees are claiming against their W-2 wages. The PA DOR is requesting letters from the employee\u2019s employer stating that the expenses claimed as non-reimbursable by the employee are in fact non-reimbursable per the employer\u2019s expense reimbursement policy.<\/p>\n
The DOR\u2019s policy is no different than that of the IRS. The Richards<\/em> case (T.C. Memo 2014-88, May 15, 2014) illustrated the rule that in order for an employee to deduct unreimbursed employee business expenses on Schedule A (subject to the 2% of AGI limitation), the expense must NOT be reimbursable by the employer. In the Richards case, the employee failed to claim reimbursement for her expenses in the course of her employment that she was entitled to claim under her employer\u2019s expense reimbursement policy. The courts have consistently ruled that a taxpayer must not have the right to claim reimbursement from his or her employer to claim the tax deduction on Schedule A. In other words, the fact that the expenses were not reimbursed by the employer is not controlling. What is controlling is whether the employee can prove that (1) he or she is required to incur the expenses on behalf of the employer and (2) if the employee requested reimbursement and was denied by the employer or the employer\u2019s reimbursement policy clearly states that such expenses are not reimbursable.<\/p>\n Thus when it comes to tax preparation<\/a> and tax planning<\/a>, the burden is upon the taxpayer to procure a copy of the employer\u2019s expense reimbursement policy to support any unreimbursed employee expenses claimed on Schedule A. It may not be a bad idea to obtain a letter from the employer to support the required expenses to be incurred by the employee and that the employer\u2019s policy is not to reimburse the employee for such expenses.<\/p>\n If you want to learn more about your personal or business tax situations, we invite you to call 610-594-2601<\/a> today to make an appointment at our Exton PA CPA office<\/a>to discuss your situation. You can also schedule a consultation at Click Here<\/a>.<\/p>\n Recent posts have discussed the PA Dept. of Revenue\u2019s (DOR) efforts to deny Sch. UE-1 expenses that employees are claiming against their W-2 wages. The PA DOR is requesting letters from the employee\u2019s employer stating that the expenses claimed as non-reimbursable by the employee are in fact non-reimbursable per the employer\u2019s expense reimbursement policy. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[],"class_list":{"0":"post-1432","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-irs-tax-planning-ideas-tips-news","7":"entry"},"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9W9tf-n6","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/comments?post=1432"}],"version-history":[{"count":5,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1432\/revisions"}],"predecessor-version":[{"id":1449,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1432\/revisions\/1449"}],"wp:attachment":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/media?parent=1432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/categories?post=1432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/tags?post=1432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Copyright \u00a9 2014 Keystone Financial Solutions, P.C. All rights reserved. BE SURE TO READ THE DISCLAIMER PAGE: Content in this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher of this blog makes no representations as to the accuracy or completeness of any information herein, will not be liable for any errors or omissions, and shall not assume liability for any losses, injuries, or damages from the display or use of this information.<\/h6>\n","protected":false},"excerpt":{"rendered":"