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Screen PA2106 - Pennsylvania Employee Business Expense (1040)

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Overview

Use this screen to complete Form PA-40 Schedule UE, Allowable Employee Business Expenses. Amounts that appear in the PA2106 screen are automatically transferred from the federal 2106 screen. It's important to report any state-related law differences and details in the PA2106 screen.
note
  • When adding or deleting units on this screen, it's required that it be done in the corresponding federal screen instead.
  • To prevent the 2106 expenses from flowing to Schedule UE, remove the unit number from the
    Form 2106
     field on the PAUE screen under the Business Expenses section.
  • To include Employee Business Expenses on the Local EIT return, enter the 3-digit local city code, the 3-letter code for Pittsburgh (PGH) or the 3-letter code for Philadelphia (PHL) in the
    City
     field on the federal 2106 screen. This code will also transfer to the PA2106 screen and Employee Business Expenses will transfer to that city's return.

Supplemental Business Expenses (SBE)

Use this section to enter the allocations and reimbursements for the Pennsylvania Supplemental Business Expenses Allocation Worksheet. Information in this section transfers from the federal 2106 screen. Percentages entered in the state allocation spreadsheet in the federal 2106 screen transfer to these fields. The
In-state
 fields are applicable to part-year and nonresident returns only to allocate the in-state portion of expenses for multi-state activities.
Reimbursements
These fields are used as the total reimbursements for the activities listed on the SBE worksheet. They aren't used for the reimbursements relating to the Schedule UE column. When more than 1 activity exists, the reimbursement fields are added together and divided between each activity based on the business percent entered to the total of the business percentage only for the activities.
Example: UE expenses are allocated 10% to Schedule C and 30% to Schedule E for a total allocation percentage of 40%. The reimbursements entered would be allocated to Schedule C by taking 10% divided by 40%, which is 25%. For Schedule E, take 30% divided by 40%, which is 75%.

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