Pennsylvania is one of the few states that still lets W-2 employees deduct unreimbursed job-related expenses on their state return, even though the federal deduction for these costs was suspended under current federal law. That state-level deduction is claimed on PA Schedule UE.
Who Can File Schedule UE
Schedule UE is for W-2 employees who paid work-related expenses their employer didn’t reimburse, and that were required as a condition of employment. It doesn’t apply to self-employed workers, who deduct business expenses on their own Schedule C-equivalent for PA instead.
Expenses That Typically Qualify
- Tools, supplies, and equipment required for your job that your employer didn’t provide
- Required uniforms and safety gear not suitable for everyday wear
- Union dues and required professional license fees
- Travel between job sites (not your regular commute) and related mileage
- A home office, if your employer requires you to maintain one and doesn’t provide alternative workspace
What You’ll Need
Keep receipts for everything you claim, along with a mileage log if you’re claiming vehicle expenses. Some expense categories may require your employer to confirm in writing that the expense was a required condition of your job and wasn’t reimbursed — check the current Schedule UE instructions for which categories need this.
How It Differs From the Federal Rules
Since 2018, federal law has suspended the itemized deduction for unreimbursed employee expenses for most W-2 workers. Pennsylvania never adopted that suspension for its own income tax, so PA residents can still benefit from Schedule UE at the state level even though the equivalent federal deduction isn’t available.
Frequently Asked Questions
Can I claim Schedule UE if I already claimed the standard deduction federally? Yes — Pennsylvania doesn’t have a standard deduction the way the federal return does, and PA Schedule UE is independent of your federal itemizing choice.
Do I need receipts for every expense? Yes, PA expects documentation for anything claimed on Schedule UE, and the Department of Revenue can request it after you file.
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