Earned Income Tax Return Form Pennsylvania (Page 2 of 2) in pdf

KEYSTONE TAX BUREAU INSTRUCTIONS

FOR FILING FINAL RETURN FOR NET PROFITS AND EARNED INCOME TAX.

WHO MUST FILE: Every person who resided for part or all of the year in Springfield

Township regardless

of income. THERE IS NO

MINIMUM AMOUNT OF EARNED INCOME OR NET PROFITS THAT MUST BE EARNED BEFORE BEING REQUIRED TO FILE.

However,

please note that interest and dividend income is NOT subject to the Earned Income Tax. This return must be filed even if your tax was withheld

and there is no tax due. If you received a Fina! Return but had no taxable income for the tax year, please indicate the reason (housewife, retired,

disabled, etc.) on the Final Return and forward to Keystone Tax Bureau.

WHEN TO FILE: All Final Earned Income Tax Returns must be filed on or before April 15th to avoid a late filing fee of $10.00 per person, and

interest and penalties jf applicable. (See additional information regarding Federal Extensions)

WHERE TO FILE AND OBTAIN INFORMATION AND ASSISTANCE:

Keystone Tax Bureau. If remitting payment send return to P.O. Box 822283,

Phila., PA 19182. If no paymenVrefund send return to P.O. Box 441, Southeastern,

PA 19399. Telephone (610) 993-8609.

EARNED INCOME:

NOTE: Tax deferred compensation and contributions to 401 (k) plans, Individual Retirement Accounts (IRA's), Keoghs,

Tax-sheltered Annuities (TSA's), and other similar arrangements

are included in gross earnings and consequently

are taxed at 1% for Earned

Income Tax purposes.

DEFINITIONS:

Salaries, wages, commissions,

bonuses, incentive payments, fees, tips, supplemental

wage plans,

exercising stock options, PA earned military pay, covenant not to compete, golden parachute payments, interest earned on 401 (k) premature

distributions, and other compensation received by a person or his personal representative for services rendered, whether directly or through an

agent, and whether in cash or in property; NOT INCLUDING,

HOWEVER; wages or compensation

paid to persons on active military service

outside PA, periodic payments for sickness and disability other than regular wages received during a period of sickness, disability or retirement

or payments arising under Workman's Compensation Acts, occupational disease acts, and similar legislation or payments commonly recognized

as old age benefits, retirement, or pensions paid to persons retired from service after a specific age or after a stated period of employment or

payments commonly known as public assistance or unemployment.

NET lOSSES:

A taxpayer may offset a business loss against salaries, wages and other compensation

(W-2 earnings). The net profit of each

business activity is to be determined separately with reference only to the gross income and expenses of that business and without mixing the

income of one activity with the expenses of another. Persons engaged in more than one business activity during the tax year may not offset a

loss in one activity against the gain in another. The tax is imposed on the net profit of each business activity separately. A loss incurred from a

profession, business activity or venture, regardless of the nature, may not be deducted from the net profit of any other business activity. (See

Aronson vs. City of Pittsburgh, 86 Pa. Cmwlth, 591, 485 A.2d 890 (1985). A taxpayer who has incurred a loss from self-employment

must file a

Final Return along with appropriate schedules on or before April 16th. Failure to do so will result in a late filing fee of $10.00 per person.

NET PROFITS: The net income from the operation of a business, profession, or other activity 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 such a business,

profession, or other activity, but without deductions of taxes based on income. If you have income from self-employment

a declaration must be

filed with Keystone Tax Bureau. "Information and instructions for Filing Declaration of Estimated Annual Earned Income Tax for Self-Employed"

may be obtained by contacting our office at (610) 993-8609.

SUBCHAPTER

S CORPORATIONS:

Subchapter

S income, which arises from active participation

is taxable as earned income on Line

(W-2 Earnings) or Form 1099. Net profits or losses from a Subchapter S Corporation are not taxable or allowable as a deduction.

VERIFICATION

OF INCOME: Copies of ALL supporting schedules and statements must be attached to verify total income reported.

PHILADELPHIA

WAGE TAX: You may use any wage tax paid to Philadelphia as a credit on wages, salaries and commissions,

etc., or net

profits earned outside Philadelphia. You are not liable for duplicate payment of a 1% Wage Tax to your resident district. However, you must

complete the Final Return, stating your employer, employer's address, income and the amount of taxes paid or withheld for the City. A COPY OF

YOUR W-2 AND/OR VERIFICATION OF TAXES PAID MUST BE ATTACHED TO THE FORM OR CREDIT Will

BE DISAllOWED.

If you do not

have sufficient credit of taxes withheld by your employers, the remaining portion of your total liability would be subject to the Earned Income Tax

levied by your resident district.

NO REFUNDS OR CREDITS WILL BE ALLOWED FOR ANY OVERPAYMENT MADE TO PHILADELPHIA.

WAGE TAXES PAID TO OTHER STATES: No credits are given for state income taxes paid to states which reciprocate with Pennsylvania. These

are Maryland, New Jersey, Ohio, Virginia, West Virginia and Indiana. You may take credit based upon the gross earnings taxed in other states

which is in excess of PA's state personal income tax rate. COPIES OF W-2 and STATE INCOME TAX RETURNS MUST BE PROVIDED OR

CREDIT Will

BE DISALLOWED.

WITHHOLDING

OF TAX: Copies of Wage and Tax statements must be attached (W-2 Statements). Credit for the withholding of Earned Income

Tax cannot be granted without proof.

TAX NOT WITHHELD:

If the full local Earned Income Tax of 1% is not withheld at source on all taxable income, a declaration (s) must be filed

with Keystone Tax Bureau for the current year. "Information and Instructions for Filing Declaration of Quarterly Earned Income Tax for Employed"

may be obtained by contacting our office at (610) 993-8609. Failure to receive declaration forms does not relieve the taxpayer of the responsibil-

ity to file declarations.

PAYMENT: For tax payments made after April 15th, ADD interest of six percent per annum and penalty of 1/2% per month, or a fraction thereof.

(Total combined rate of 1% per month or total of 12% per annum.) If the total due is less than $1.00, payment need not be made. Also, no refunds

or credits will be honored under $1.00.

LATE FILING FEE: All returns filed after April 15th will be assessed a late filing fee of $10.00 per person, plus $10.00 per quarter for failure to

pay quarterly.

(See additional information regarding Federal Extensions.)

EXTENSIONS:

We require a copy of your Federal or PA Tax Extension Form. It must be received at this office on or before April 15th. There is

no provision for authorizing an extension of time for payment of this tax.

FAILURE TO RECEIVE FINAL RETURN: Failure to receive a tax form does not relieve you of the responsibility to file a return and pay any tax,

interest and penalties along with any late filing fees as may be due.

SIGNATURE:

All returns must be signed by the taxpayer in order to be considered properly filed.

TAXPAYER RIGHTS: You are entitled to exercise certain legal rights, as set forth in a Statement ofTaxpayer's Rights. To obtain a copy at no cost,

contact Keystone Tax Bureau at 610-993-8609.

Earned Income Tax Return Form Pennsylvania Page 2

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