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

IMPORTANT:

THE ACCOMPANYING TAX RETURN(S) MUST BE FILED WITH THIS OFFICE BY APRIL 15TH EVEN IF NO TAX IS DUE OR

IF ALL HAS BEEN WITHHELD BY YOUR EMPLOYER.

FAILURE TO FILE YOUR RETURN(S) MAY SUBJECT YOU TO A $500.00 FINE

INSTRUCTIONS

EFFECTIVE

DATES FOR THIS TAX: This return covers the taxable period from January 1 through December 31.

Spouses must file SEPARATELY.

However, one return may be used as there are two separate columns.

A credit from one spouse may not be used to offset the

tax liability of the other.

Line1.

GROSS EARNINGS FOR SERVICES RENDERED:

DOCUMENTATION

REQUIRED: W-2(s) and/or 1099(s).

TAXABLE

INCOME includes: Salaries; Wages; Commissions;

Bonuses; Tips; Fees; Incentive Payments;

benefits accruing from employment

such

as Annual Leave, Vacation, Holiday, Separation, Sabbatical Leave, and payments from Union Health and Welfare Benefits Funds; Compensation

received in the form of property shall be taxed at its fair market value at the time of receipt; Jury Duty; Payments received from weekend meetings from

National Guard or Reserve Units; Sick Pay, if employee receives a regular salary during period of sickness or disability by virtue of his agreement of

employment;

and taxes assumed by the Employer.

(Use Local Wages if noted on W-2 or State Wages, whichever

is higher for the purposes

calculating

this tax.)

NON-TAXABLE

INCOME includes:

Social Security Benefits;

Unemployment

Compensation;

Pensions; Public Assistance;

Death Benefits;

Gifts;

.Interest; Dividends;

Boarding and Lodging to employees for convenience of employer;

Lottery Winnings;

Supplemental

unemployment

benefits; Capital

Gains; and Active military service and summer encampment.

Line 2.

ALLOWABLE

EMPLOYEE

BUSINESS EXPENSE:

Unreimbursed

business expense.

Must attach a copy of PA Schedule UE. Business expenses for which an employee has not been reimbursed.

Such

expenses are REQUIRED BY THE EMPLOYER IN ORDER FOR THE TAXPAYER TO KEEP THEIR PRESENT JOB.

Refund will automatically

denied if PA UE is not attached.

LINE 3.

NET LOSS FROM BUSINESS:

DOCUMENTATION

REQUIRED:

PA Schedules C, F, RK-1 or NRK-1 must be attached.

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

(W-2 earnings - line 1). A taxpayer may not offset a loss

from one business against a net profit from another business.

All allowable business losses must be reported on line 3.

Line 4.

TAXABLE

EARNINGS:

(Line 1 less lines 2

3: not less than zero).

Line 5.

NET PROFITS FROM BUSINESS:

DOCUMENTATION

REQUIRED:

PA Schedules C, F, RK-1 or NRK-1 must be attached.

The net profits of a business, trade, profession,

or other activity shall be computed

by subtracting

from the gross receipts the cost of goods and all

ordinary expenses of doing business.

Any business deduction not allowed by the State of PA for income tax purpose will not be allowed.

Rentals from

real estate and from personal property leased with the real estate is not included, unless reportable

on Schedule C, or if the taxpayer is in the

business of renting real estate. Gain or loss from the sale of capital assets is not included in the computation

of net profits.

SUBCHAPTER

S CORPORATIONS

Subchapter S income which arises from active participation

is taxable as earned income on Line #1 (W-2 Earnings)

or Form 1099. Net profits or losses from a Subchapter S Corporation

are not taxable or allowed as a deduction.

Line 6.

TOTAL EARNED INCOME subject to tax (add lines 4 + 5).

Line 7.

TAX LIABILITY:

One percent (1%) of line 6.

Line 8.

EARNED INCOME TAX WITHHELD:

You may take credit for any local income tax withheld and shown on your W-2 form, but only up to one percent

(1%). ($10.00 Occupational

Privilege Tax or $52.00 EMSTTax

may not be used as a credit.)

Line 9.

ESTIMATED PAYMENTS:

List any estimated payments made and prior year credit.

Line 10.

MISCELLANEOUS

CREDITS:

CREDIT FOR TAXES PAID TO PHILADELPHIA:

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 Wage Tax to your resident district.

However you must complete

the Final Return. 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 paid to or 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.

On Line 10 enter the amount of Philadelphia wage tax paid or the amount on Line 7, whichever is less.

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 Pennsylvania's state personal income tax rate. Copies of W-2 and state income tax returns must be provided to obtain this credit.

Line 11.

TOTAL:

(Lines 8 + 9

10)

Line 12.

lAX DUE: If line 7 is larger than Line 11. Make payment in full, omit if less than $1.00.

Line 13.

INTEREST AND PENALTIES:

If for any reason the tax is not paid when due, interest at the rate of six percent per annum on the amount of said tax, and

an additional penalty of one-half on one percent of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid

shall be added and paid. This translates to 1% per month for each month the tax is not paid after the due date.

Line 14.

TOTAL AMOUNT DUE: (Line 12 +13) Make payment in full. If less than $1.00 enter zero.

Line 15.

OVERPAYMENT OF TAX If you have an overpayment of taxes in excess of $1.00, you may elect to receive a cash refund or take same as a credit

against next year's tax liability

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 authorizing an extension of time for payment of this tax.

SIGNATURE VERIFICATION:

You have not filed a valid tax return unless you sign and date it.

NOTICE: You are entitled to receive a written explanation of your rights with regard to the audit, appeal, enforcement,