Travel Expenses for PA Tax Return

[SonofaBish]

I live in PA and work most of my time from my home office (approx 80% of the time).  However, my corporate office is in NY state and I do have to travel to the corporate office the other approximately 20% of the time.  As I understand it, I cannot deduct expenses related to mileage, staying overnight, etc. for federal purposes, but the TurboTax instructions seem to imply that I may be able to on my PA return.  So, am I actually able to deduct mileage and overnight expenses on my PA return?

[DianeW777]

Yes. Pennsylvania (PA) does allow employee business expenses on Schedule UE, if they meet the requirements below and only on the amounts that are not reimbursed by your employer. You will be asked in the PA interview to enter your expenses that qualify. 

PA Unreimbursed Employee Expenses:

Some workers may be able to deduct eligible work-related expenses from their state income tax. These resources can help you determine which expenses are deductible as an unreimbursed business expense.

Allowable employee business expenses for PA purposes are similar to, but not the same as, expenses for federal purposes. 

PA law only permits expenses required to perform the duties of a job or profession. (PA-40 Instructions - begin on page 26)

Allowable Pennsylvania Employee Business Expenses Must Be: 

1. Ordinary, customary, and accepted in the industry or occupation in which you work; 

2. Actually paid while performing the duties of your employment; 

3. Reasonable in amount and not excessive; 

4. Necessary to enable you to properly perform the duties of your employment; and 

5. Directly related to performing the duties of your occupation or employment. 

IMPORTANT: You may deduct 100 percent of your PA-allowable unreimbursed employee business expenses. PA law does not have federal expense and percentage accounting limitations and thresholds