How to enter and generate PA Sch UE

[v7]

Need to enter Allowable Employee Business Expenses to generate PA Sch UE. In TTO/TTD we can do it inside state returns. How we can achieve same result in ProConnect?

[v7 · Accepted solution]

In ProConnect Tax, Pennsylvania Allowable Employee Business Expenses (Schedule UE) are typically generated by entering the expenses at the federal level first. Since PA is one of the few states that still allows a robust deduction for unreimbursed employee expenses (even though the federal deduction was largely suspended for most taxpayers), the software pulls the data from the Form 2106 input screens.

Steps to Enter PA Schedule UE in ProConnect

1. Navigate to the Federal Input:

   • Go to the Input Return tab.

   • On the left-side menu, select Income ⮕ Wages, Salaries, Tips (W-2).

   • Ensure the W-2 is entered and correctly assigned to the Taxpayer or Spouse.

2. Enter Expenses (Form 2106):

   • On the left-side menu, go to Deductions ⮕ Vehicle/Employee Business Expense (2106).

   • In the Form (Ctrl+T) field, select Form 2106.

   • In the Number of Form W-2 field, enter the corresponding W-2 number from the Wages screen (e.g., "1" for the first W-2).

   • Enter your specific expenses:

     • Vehicle Expenses: Enter mileage or actual expenses in the Vehicle Expenses section.

     • General Expenses: Scroll down to the Employee Business Expenses section for items like travel, meals, or "Other" expenses (union dues, small tools, etc.).

3. Review the State Return:

   • Go to the Check Return tab.

   • Look for PA Schedule UE. ProConnect should automatically generate this form using the federal entries you made.

   • Note: PA rules are strict. If you have multiple employers, you must create a separate Form 2106 entry for each employer to generate separate UE schedules.