Local Earned Income Tax Return - Mifflin County School District

GENERAL INSTRUCTIONS FOR FILING EARNED INCOME/NET PROFITS TAX RETURN FORM

Please review the general instructions and follow the line by line instructions on the tax return. If you have any questions

concerning the filing of your return, please contact this earned income tax bureau.

Must round to the nearest whole dollar ($.50 and greater equals $1.00 likewise, $.49 and less equals $.00)

WHO MUST FILE: Each resident who is 16 years of age or older. Gross earnings are taxable for the entire calendar year in which an individual becomes 16 years of age.

If you are retired or permanently disabled, indicate this on the tax form (include date of retirement, disability, etc.) and your name will be removed from our taxpayer file,

if you have no taxable income.

A RETURN MUST BE FILED EVEN IF: (a) You were a college student; (b) Your legal domicile is within the Bureau’s taxing jurisdiction, regardless of where you reside or

were employed; (c) All the tax was withheld by your employer; (d) You received a tax return form and had no taxable income. If you had no taxable income, indicate NONE

on line 9 of the tax return. The 1% non-resident tax is due on earnings while working in Mifflin County.

PARTIAL YEAR RESIDENT: If you were a resident, or if your legal domicile was within our taxing jurisdiction for only a portion of the year you are required to file a tax

return form with this Bureau, listing the applicable portion of your earnings and net profits for the period you were a resident in our jurisdiction, AND also file a return with

the tax collector for the municipality and school district in which you lived the balance of the year, listing that portion of your earnings and net profits applicable for that

portion of the year. (Attach copy of other tax return.)

ESTATES: IF the deceased person resided or was domiciled within our taxing jurisdiction, the Administrator/Executor of the estate must file a return and pay the tax for

that portion of the year during which the deceased had earned income and/or net profits.

ACCURACY, COMPLETENESS AND SIGNATURE: Accuracy and completeness are essential to avoid further communication and correspondence. Complete your

return in its entirety. THE RETURN MUST BE SIGNED OR IT WILL BE RETURNED TO YOU AS INCOMPLETE.

FAILURE TO RECEIVE A TAX RETURN FORM from the Bureau is not a basis for not filing. Additional tax return forms may be obtained by contacting the Bureau.

FAILURE TO PROPERLY FILE THE RETURN MAY RESULT IN LEGAL ACTION.

MULTIPLE OR DUPLICATE TAX RETURNS: If you receive more than one tax return, use the return with the correct Social Security number. Return all tax returns in the

same envelope, with the duplicate form marked “Wrong Social Security Number _ _ _ __ _ _ _ _ _ . DO NOT DESTROY A TAX FORM as we will not know an error has

been made.

DUE DATE: Any tax due is payable upon filing the tax return and must be filed and paid by April 15, of the following year. If your Federal or Penna. State Income Tax Return

has been audited and adjustments made which affect the earned income tax, an amended tax return must be filed with this bureau within 30 days after final adjustment.

REFUNDS: Overpayments of more than $3.00 will be refunded by the Bureau. Refunds totaling $10.00 or more must be reported by us to the Internal Revenue Service

on Form 1099. Overpayments on one Spouse can be transferred to the other Spouse to offset the balance due.

REMITTANCE: Should be made payable to MIFFCO, Tax Collectors, if more than $3.00.

Your cancelled check or Money Order is your receipt. Do not send cash. If your tax return balance due is $3.00 or less, the amount due need not be remitted, however the

return must be filed.

INTEREST .25% AND PENALTY 1%=1.25% per month if paid after April 15, + $15.00 processing fee.

TAXABLE EARNED INCOME INCLUDES BUT MAY NOT BE LIMITED TO: If your W-2 local wage box does not include the following, they must be added to determine the

correct taxable wages: DEFFERED COMPENSATION CONTRIBUTION IS TAXABLE IN THE YEAR OF THE CONTRIBUTION; Non-cash fringe benefits; Bonuses; Jury duty;

Reimbursed moving or business expenses; Taxes assumed by the employer; Incentive payments; (ie: stock options & phantom stock plans); Fellowships & stipends; Vacation

pay; Commissions; Fees; Honoraria; Severance pay; active military pay or national guard in PA; Personal use of a vehicle provided by employer; Distributions received prior to

actual date of retirement (including but not limited to ESOP, PAYSOP, 401K, 403B, 475B etc.) shall be taxable on the employers contributed portion, IF the distribution is not

rolled into an individual qualified retirement plan. Limited liability company income is taxable.

NON-TAXABLE INCOME: SUB Pay; Unemployment benefits; Public assistance; Interest; Dividends; Scholarships: Active duty military pay unless in PA; Social Security

benefits; Lottery winnings; Strike pay; Cost of group term insurance; Third party sick pay; Disability pay; Capital gains; S corporation income; Annuities; Pensions; IRA pension

payments received after retirement; Proceeds from insurance policies; Death benefit payments; Inheritance; Value of meals & lodging furnished domestic or other employees

by the employer for the employer’s convenience; Profits from limited partnerships engaged in real estate, oil, gas, mining leases or other similar investment, cafeteria plan,

parsonage or housing plan.

ALLOWED EXPENSE DEDUCTIONS: NOTE: BUSINESS/MOVING EXPENSES TAKEN WITHOUT COMPLETE, PROPER SUPPORTING DOCUMENTATION (PA UE AND/

OR FEDERAL FORM 2106 & FEDERAL MOVING EXPENSE FORM 3903 WHEN NECESSARY) SHALL BE DENIED WITHOUT FURTHER NOTIFICATION TO

THE TAXPAYER. The Bureau follows the PA individual income tax regulations & guidelines for allowable employee business expense deductions. Ordinary, necessary,

reasonable, actual & directly related business expenses not reimbursed by your employer will be permitted. FEDERAL PER DIEM RATES ARE NOT PERMISSIBLE. REFER

TO PA INSTRUCTIONS FOR PROPER UE DEDUCTIONS.

LINE 4. OTHER TAXABLE INCOME: Day Labor, Executor fees, Director fees. ATTACH DOCUMENTATION.

LINE 4a. INFORMATION ONLY (Not Taxable): Sub-chapter S corporation and Passive Partnership Income, strictly for cross referencing with Pa. State records.

UNALLOWED DEDUCTIONS: Include but not limited to Alimony; Babysitting/Childcare; Books/Magazines; Casualty & theft losses; Contributions; fees; Interest; Laundry &

dry cleaning; Life Insurance; Vehicle license fees; federal form 1040 itemized deductions; Tools for home use; Deferred compensation plan contributions; Employee’s own

contributions; Simplified employee pension plan (SEP); Educational expenses to qualify for employment of a new occupation, trade or business; Federal form 1040 tax credits;

Federal, state or local income taxes; Gift, Estate, Inheritance taxes or personal deduction or off-set. One person’s loss may not be deducted from the spouse’s earnings or profit.

LINE 6. NET PROFITS FROM BUSINESS, PROFESSION, OR FARM: (No C-F Reconciliation) Net profits is net income from an operation of a business, profession, or other

activity, except corporations, after provision for all costs and expenses incurred in the conduct thereof, determined either on a cash or accrual basis in accordance with the

accounting system used in business, profession, or other activity, but without deduction of taxes based on income. This would be the income as reported on Federal and PA

schedules C, F, or K-1 1065. ATTACH ALL SCHEDULES.

LINE 7. NET LOSSES FROM BUSINESS, PROFESSION, OR FARM.

LINE 8. BUSINESS LOSSES ARE DEDUCTIBLE AGAINST BUSINESS PROFITS ONLY, but not less than zero, as per Act 32 effective January 1, 2009.

OUT OF STATE EARNINGS AND PHILADELPHIA WAGES: A credit is allowed up to the Local Tax liability for the excess tax paid to another State over the PA State Tax

Liability (schedule G) and attach copies of both State Tax Returns and computation. For Philadelphia Wages a credit is allowed up to the Local Tax Liability.

Local Earned Income Tax Return - Mifflin County School District - 2015 Page 2

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