Nonallowable Expenses

Pennsylvania does not allow the following business expenses, even if allowed for federal purposes:

Personal, living, or family expenses;

Dues to fraternal organizations, professional societies, Chambers of Commerce, or recreational club memberships;

Dues and subscriptions to publications, including trade and professional publications;

Political candidate or campaign contributions;

Charitable contributions;

Commuting expenses –the costs of public transportation or driving a car between a taxpayer’s home and place of work or between different jobs for different employers are personal commuting expenses no matter how far the home is from the workplace;

Cost of meals while working late, unless while traveling away from home overnight on business;

Childcare or elderly care expenses;

Occupational privilege taxes:

Life, disability income, and health insurance premiums;

Contributions to deferred compensation plans or other pension or retirement plans;

Legal fees (except to recover back wages), fines, penalties and bad debts;

Bribes, kickbacks, or other illegal payments;

Job hunting or other pursuit of employment expenses;

Malpractice insurance premiums, except when allowed in Part E, 1, d;

Moving expenses, except when allowed in Part E, 6;

Educational expenses, except as allowed in Part E, 5;

Capital expenditures, except as allowed in Part E, 7;

Expenses calculated at federal per-diem rates;

Expenses where the employer reimburses an employee at a fixed-mileage allowance, daily, weekly, monthly, or yearly amount where the reimbursement amount is less than the federal mileage allowance or the actual expense and the reimbursement is NOT included in the employee’s wages reported on federal Form W-2 by the employer; and/or

Expenses reimbursed 100% by the employer.