M1UE: Unreimbursed Employee Business Expenses (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota’s 2025 Schedule M1UE reports unreimbursed employee business expenses, including vehicle expenses, travel, meals, and other business expenses. It accounts for employer reimbursements and calculates an amount to include on Schedule M1SA, Minnesota Itemized Deductions.
Who files this form
Complete 2025 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, or 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 are a rural mail carrier whose 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: Keep records proving the time, place, business purpose, and amounts of travel, gift, and vehicle or other listed-property expenses. For gifts, also record the business relationship.
- Lodging receipts: Generally, you must have receipts for all lodging expenses, regardless of the amount.
- Meal records: If you use the standard meal allowance, you still need records of the time, place, and business purpose of your travel, but not your actual meal costs.
- Form W-2 and reimbursement records: Use these to identify employer reimbursements, including amounts reported under code L in box 12. Keep the reimbursement allocation worksheet if it applies.
- Vehicle records: Have your vehicle's placed-in-service date and mileage information, including business and commuting miles. If using actual expenses, have expense records and the information needed for the depreciation worksheet.
Common mistakes
- Counting commuting as business travel: Commuting expenses are not deductible, and commuting miles do not belong on line 13.
- Putting meals on the wrong line: Do not include meals on lines 3 or 4. Enter allowable meals on line 5. Also leave taxes and interest off line 4.
- Combining multiple vehicles in 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: Do not include state and local personal property taxes or interest on line 21. Employees cannot deduct car loan interest.
Questions people ask
What is the standard mileage rate for 2025?
The rate is 70 cents per business mile. To use it for a vehicle you own, you must have used the standard mileage rate in the first year you placed the vehicle in service. For a leased vehicle, you must use it for the entire lease period.
How much of my business meal expenses can I deduct?
Generally, you may deduct 50%. 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 do I enter employer reimbursements?
Enter reimbursements for expenses on lines 1 through 6 that were not included in your adjusted gross income on line 7. Put meal reimbursements in Column B and other business expense reimbursements in Column A. If one payment covers both, use the reimbursement allocation worksheet.
Where does the total from M1UE go?
Generally, include line 10 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.