At a recent conference, a representative of the PA Department of Revenue (\u201cDOR\u201d) shared with the attending tax practitioners some reasons as to why PA disallows unreimbursed expenses claimed by taxpayers on PA Form UE-1.<\/p>\n
Why is the PA DOR challenging your unreimbursed expenses reported on Form UE-1? One reason could be your employer\u2019s EIN which must be shown on Form UE-1. The DOR knows that certain employers have a company accountable reimbursement plan. Thus taxpayers who are claiming unreimbursed expenses who work for these employers will be challenged.<\/p>\n
The PA DOR also stated that if the employer has a per diem or mileage reimbursement plan, that taxpayers cannot claim unreimbursed expenses for these types of expenses. For example, if the employer has a per diem travel and meal rate of $50 per day, and the taxpayer incurs expenses in excess of that amount, there is no deduction allowed by PA for the amount incurred over the per diem allowance. Likewise, if the employer reimburses the employee for 40\u00a2 per mile which is less than the federal mileage reimbursement rate, the taxpayer is not allowed an unreimbursed expense deduction for the difference. These two examples illustrate that employees who are reimbursed, even partially, are not entitled to a PA tax deduction.<\/p>\n
In prior posts (March 24 2015<\/a> and Sept. 23 2014<\/a>), we discussed that PA is requesting that the taxpayer who is claiming unreimbursed expenses provide it with a letter from the employer stating what expenses the employer requires the employee to incur as a condition of employment and which are not reimbursable. The employer\u2019s letter must also state whether it has or does not have a reimbursement policy. If the employer does have a reimbursement policy, the deduction is not allowable.<\/p>\n If you want to learn more about tax preparation<\/a> services or tax planning<\/a> strategies, 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 At a recent conference, a representative of the PA Department of Revenue (\u201cDOR\u201d) shared with the attending tax practitioners some reasons as to why PA disallows unreimbursed expenses claimed by taxpayers on PA Form UE-1. Why is the PA DOR challenging your unreimbursed expenses reported on Form UE-1? One reason<\/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":[4],"tags":[],"class_list":{"0":"post-1650","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-pennsylvania-tax-news","7":"entry"},"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9W9tf-qC","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1650","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=1650"}],"version-history":[{"count":5,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1650\/revisions"}],"predecessor-version":[{"id":1655,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1650\/revisions\/1655"}],"wp:attachment":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/media?parent=1650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/categories?post=1650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/tags?post=1650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Copyright \u00a9 2015 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.<\/strong><\/h6>\n","protected":false},"excerpt":{"rendered":"