Article: 50553
Overview
Minnesota allows certain taxpayers to deduct unreimbursed employee business expenses, even though these deductions are no longer allowed at the federal level for most filers. These expenses are reported using Schedule M1UE – Unreimbursed Employee Business Expenses.
Who Can Claim This Deduction?
You may be eligible to claim unreimbursed employee business expenses on your Minnesota return if:
- You were a W-2 employee, and
- You incurred ordinary and necessary business expenses as part of your job, and
- Your employer did not reimburse you for these costs, and
- You are not claiming these expenses as part of a federal business deduction.
Note: Eligible filers may include educators, traveling employees, performers, or state legislators with qualified expenses.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Minnesota.
- Click on the Itemized Deductions tab.
- Select Unreimbursed Employee Business Expenses to open the screen.
- Enter any applicable information.
- Click Save once complete.
Additional Resources
For more information, see:
2024 Schedule M1UE – Unreimbursed Employee Business Expenses Instructions (PDF)