M1UE: Unreimbursed Employee Business Expenses (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule M1UE reports unreimbursed employee business expenses, including vehicle costs, transportation, overnight travel, and meals. It accounts for employer reimbursements and calculates the amount to include on Schedule M1SA, Minnesota Itemized Deductions.
Who files this form
Complete 2024 Schedule M1UE to report employee business expenses you did not include on line 12 of federal Schedule 1.
Do not complete M1UE for expenses claimed on federal Form 2106 if you are:
- A member of the Armed Forces.
- A qualifying performing artist.
- A fee-basis state or local government official.
If you have a disability and claimed impairment-related work expenses on federal Form 2106, complete M1UE. Enter its line 10 amount on line 24 of Schedule M1SA. These expenses are not subject to the 2% limit that applies to most other employee business expenses.
If you were a rural mail carrier and your vehicle expenses were no more than your qualified reimbursements, do not file M1UE unless you have other deductible expenses. If you have other deductible expenses, skip line 1 and leave qualified reimbursements out of line 7, Column A.
What you'll need
- Expense records: For travel, gifts, and use of a car or other listed property, keep records showing the time, place, business purpose, and amounts. For gifts, also document the business relationship.
- Lodging receipts: Generally, receipts are required for all lodging expenses, regardless of amount.
- Meal records: If you use the standard meal allowance instead of actual meal costs, you must still record the time, place, and business purpose of your travel.
- Form W-2 and reimbursement information: Line 7 includes applicable employer or third-party reimbursements, including amounts reported with code “L” in box 12 of Form W-2. Keep the reimbursement allocation worksheet if you use it.
- Vehicle records, if claiming vehicle expenses: Have the date you began business use, total miles, business miles, and commuting information. Keep a record of business miles. If using actual expenses, have your vehicle expense and applicable depreciation information.
Common mistakes
- Counting commuting as business travel: You cannot deduct commuting expenses or include commuting miles as business miles.
- Putting meals on the wrong line: Report allowable meals on line 5, not lines 3 or 4. Do not include taxes or interest on line 4.
- Leaving out reimbursements: Include applicable reimbursements on line 7. Put meal reimbursements in Column B and other business expense reimbursements in Column A. Allocate a payment that covers both.
- Combining vehicles in one Part 2: Complete and enclose a separate Part 2 for each vehicle, then combine the amounts from line 20 or 28 on line 1.
- Completing both vehicle expense methods: Fill in only the sections for the method you choose. You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.
- Including excluded vehicle costs on line 21: Do not include state and local personal property taxes or interest. Employees cannot deduct car loan interest.
Questions people ask
What is the business mileage rate for 2024?
The rate is 67 cents per business mile. Multiply the business miles on line 13 by 0.67 and enter the result on line 20 and line 1.
Can I use the standard mileage rate for any vehicle?
For a vehicle you own, you must have used the standard mileage rate in the first year you placed it in service. For a leased vehicle, you must use the rate for the entire lease period.
How much of my business meal expenses can I deduct?
Generally, line 9 allows 50% of the meal amount remaining after reimbursements. Employees subject to U.S. Department of Transportation hours-of-service limits may deduct 80% for business meals consumed during, or incident to, a period of duty when those limits apply.
Where does the total from M1UE go?
Generally, include the line 10 total on line 20 of Schedule M1SA. If you have a disability and claimed impairment-related work expenses on federal Form 2106, enter the M1UE line 10 amount on line 24 of Schedule M1SA instead.