I work in Philadelphia and live outside the city. Can I file Form 2106 and use the telework agreement for tax reimbursement?

I work in Philadelphia and live outside the city. Can I file Form 2106 and use the telework agreement for tax reimbursement?

by Michael A. Gillen, CPA | Feb 02, 2018

I live in Delaware County, Pennsylvania, and work in Philadelphia. I have a telework agreement with my employer to work from home Mondays. When entering my time record with my employer, I did not use the telework code for the Mondays I worked from home. Can I use the telework agreement to verify the telework days when I submit the application (Form 2106) to receive the tax reimbursement for the days I teleworked?

Form 2106 is a tax form used by individual taxpayers (i.e., employees) seeking to claim a deduction for ordinary and necessary unreimbursed expenses incurred while conducting business on behalf of the employer. It is not an application form used to claim a refund for Philadelphia wage taxes.

To seek a refund from the City of Philadelphia, file an annual Wage Tax Refund Petition. Nonresident employees are eligible for a wage tax refund based on work performed outside of Philadelphia. This petition is used to allocate and report the time spent working inside and outside of the city. Both you and your employer must sign the petition for refund prior to filing. Along with the petition, you will need to include a list of dates and locations when you worked outside of Philadelphia, verified and signed by your employer. Telework employees must provide a copy of their telework agreement.

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Answered by: Michael A. Gillen, CPA, is director of the tax accounting department at Duane Morris LLP in Philadelphia.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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