Form 531 - Local Earned Income And Net Profits Tax Return

LINE-BY-LINE INSTRUCTIONS FOR COMPLETING FORM 531 LOCAL EARNED INCOME AND NET PROFITS TAX RETURN

(General information and instructions are printed on the reverse side of this sheet)

LINE 1

Enter total of W-2 wages earned while a resident of one or more

income you earned while residing in Fannett Metal School District and/or

“MEMBER MUNICIPALITIES” (see the reverse side of the return). One copy of

Greencastle-Antrim School District and/or Tuscarora School District and/or

all W-2’s must be submitted with your return. W-2 income should be prorated to

Waynesboro Area School District, enter 1% (.01) on Line 11. If you moved between

where taxpayer lived when the income was earned. If you lived in different taxing

Chambersburg Area School District and one of the other school districts in our

jurisdictions during the tax year, complete Sections “A” and “C” on the reverse of

collection area during the tax year, complete a SCHEDULE X to determine the tax

the TAX BUREAU’S COPY of the return. This will help prorate your income.

rate to enter on Line 11. Attach the Schedule X to your return.

If the employer completed your W-2 form correctly, you should use the “Local

LINE 12 Multiply Line 10 by Line 11 to determine your tax liability.

Wages” shown in Box 18 of the W-2 form. If your local wage box does not include

your 401(k), 403(b) contributions, bonuses or other incentive payments, reimbursed

LINE 13

Enter the total (or prorated portion if partial year resident) of all

moving expenses, or unaccounted for or excess business expense reimbursements,

Pennsylvania local tax withheld found in Box 19 of your W-2’s. Use Line 15 to

they should be added to arrive at your correct local wages. If the wages shown in the

report credit for tax paid to the City of Philadelphia or other state’s political

federal and/or Medicare wage boxes are higher and cannot be accounted for and

subdivisions.

reconciled by Box 12 and/or 14 as non-taxable items for state and/or local tax, the

higher figure should be used.

(Some items that may account for legitimate

LINE 14

Enter the total of all quarterly tax payments you made directly to this

differences are the cost of group term life insurance for coverage in excess of

bureau for the filing tax year only. Also add in any overpayment from the previous

$50,000, 3

Party Sick Pay, or prorated local and/or state wages if you moved during

tax year credited to this tax year.

the tax year.) If you cannot account for differences in the various wage boxes on

your W-2, you should ask your employer to explain the differences and provide you

LINE 15

If you were legally liable for and paid taxes on net profits and/or

with a statement to attach with your return.

compensation to Philadelphia or any state other than Pennsylvania, and the same net

profits and/or compensation is also taxable on your local Franklin County Area Tax

LINE 2 (Note: Report any excess reimbursement of allowable employee business

Bureau resident return, you may be entitled to take a credit (against your local tax

expenses on Line 4.) We will accept the Pennsylvania Individual Income Tax

liability) for all or a portion of the taxes paid elsewhere. Please contact our bureau

regulations for allowable employee business expenses. You cannot deduct personal

and request a Local Schedule G. Local Schedule G provides specific instructions

expenses or expenses that you incur for your own convenience. If your employer

and a worksheet to determine whether you are entitled to any such credit.

requires you, as a condition of your employment, to incur business expenses out of

your own pocket, they are likely deductible. Expenses claimed must be explained in

LINE 16

Enter the total of Lines 13, 14 and 15. This is the total of your

detail giving as a minimum the information requested on the appropriate PA UE

withholdings, credits and direct payments to be applied against your tax liability.

Schedule and the IRS Form 2106 when used to back up figures on the PA UE.

LINE 17 If Line 12 is larger than Line 16, subtract Line 16 from Line 12 and enter

Copies of these supporting schedules are sufficient. A separate schedule must be

the result. In all other cases enter zero (0). If Line 17 is less than $1.00, you need

used for each spouse and for each job. Expenses from one job may not be used to

not make any payment. However, you still must file a return.

reduce compensation from another job. EXPENSES TAKEN WITHOUT PROPER

SUPPORTING DOCUMENTATION WILL BE SYSTEMATICALLY DENIED

LINE 18 If for any reason the tax is not paid when due, interest at the rate of 6%

WITHOUT NOTIFICATION TO THE TAXPAYER. Records must be available for

per annum, and an additional penalty of ½ of 1% for each month or fraction thereof

verification. Estimates will not be accepted.

during which the tax remains unpaid shall be added and collected. If you are unsure

Examples of expenses that can be deducted are union dues, professional fees and

of the amount of interest and penalty, if any, that applies to you, contact our bureau.

licenses required as a condition of employment, cost and upkeep of work clothing

provided they are not suitable for everyday use and they are required as a condition

LINE 19 If you are filing your return after the April 17 due date and you did not

of employment, cost of small tools required but not provided by employer, non-

file a local extension and pay all tax due by April 17, enter $10.00. If both spouses

commuting business transportation, away from home overnight expense, and office-

file on this form, each would owe the late fee. This fee is also assessed if your return

in-home, moving, and education expenses when required as a condition of

is incomplete after the due date. The late fee increases to $20.00 if you do not file

employment.

before the end of the year the tax return is due.

Examples of expenses that cannot be deducted include “on call” telephone, travel

to and from work, travel from union hall to work assignments, child care, medical

LINE 20

If you resided in the Chambersburg Area School District, the Fannett

expenses, charitable contributions, personal expenses, taxes, interest, subscriptions to

Metal School District, or the Greencastle-Antrim School District and you are

publications, dues to professional or fraternal societies, Chambers of Commerce, or

reporting a Tax Balance Due on Line 17, you may owe quarterly interest and

recreational club memberships, and insurance, IRA, annuity and pension plan

penalty. You were required to make quarterly estimated payments of your non-

payments. For additional information, see the PA 40 instructions and regulations.

withheld tax liability using Form 521. If you made NO quarterly estimates and you

are filing your return on the April 17 due date, Fannett Metal School District and

LINE 3

Subtract Line 2 from Line 1 to arrive at taxable W-2 earnings.

Greencastle-Antrim School District residents enter 7.25% of Line 17 (Line 17

multiplied by .0725) on Line 20. Chambersburg Borough residents enter 7.25% of

LINE 4

Enter the total of other taxable earned income as detailed on back of TAX

Line 17 (Line 17 multiplied by .0725) on Line 20. Chambersburg Area School

BUREAU’S COPY of return (Section B). Use this line to report tips not included in

District residents who live outside of Chambersburg Borough enter 5.11% of Line 17

W-2 wages, excess reimbursements of employee business expenses, fees (e.g.,

(Line 17 multiplied by .0511). However, if you were a partial year resident of any of

director’s, executor’s and trustee’s fees), work related rewards and prizes, taxable

these jurisdictions, or you made insufficient estimated payments, or your income was

premature distributions from retirement plans, and any other earned income not

not received evenly during the year, or you are filing your return before the April 17

reported elsewhere on the return.

due date, contact the tax bureau for a more precise amount of quarterly interest and

penalty to enter on Line 20.

LINE 5

Enter the total of Lines 3 and 4. This is your total taxable earned income.

LINE 21 Enter the total of Lines 17, 18, 19 and 20. This is your total balance due.

LINE 6

Enter the total of any net profits you incurred from your business, and/or

This balance due must be paid in full when filing your return. Make checks payable

profession, and/or farm activities, including limited liability companies and limited

to “FCATB” (Franklin County Area Tax Bureau).

Place your social security

liability partnerships.

number(s) on your check along with the notation “Form 531 - Tax Year 20xx”. You

LINE 7

Enter the total of any net losses you incurred from your business, and/or

may pay by credit or debit card by going online to , or by

profession, and/or farm activities, including limited liability companies and limited

calling 1-800-272-9829. Credit or debit card payments by phone require a 4-digit

liability partnerships.

jurisdiction code. Our jurisdiction code is 4844. You will be charged a service fee

of 3% ($1.00 minimum) to pay this way. If you choose to pay by credit or debit

LINE 8

Subtract Line 7 from Line 6 to arrive at taxable profits.

card, enter the confirmation number(s) in the space provided below Line 21 on the

tax form before you file the return with the tax bureau.

LINE 9

Report any Subchapter S or other “passive” profits or losses reported on

your state tax return that are not taxable on your local return. Attach documentation

LINE 22 If Line 16 is larger than Line 12, subtract Line 12 from Line 16 and enter

to explain the nature of the profits and/or losses. This is needed when we compare

the result if $1.00 or more. This is your overpayment amount.

local and state income reporting and for auditing purposes. If you did not receive a

W-2 form representing fair compensation for the services you provided to a

LINE 23 Enter the portion of your Line 22 overpayment (minimum of $1.00) that

Subchapter S corporation, you may be taxed on the amount of the pass-thru profit.

you wish to be refunded. Complete “Direct Deposit Information” to have refund

deposited directly to your savings or checking account.

LINE 10

Enter the total of Lines 5 and 8. This is your total taxable earned income

and net profits.

LINE 24 Enter the portion of your Line 22 overpayment (minimum of $1.00) that

you wish to be credited to your next year’s return.

LINE 11

If you are only reporting income you earned while residing in the

Chambersburg Area School District, enter 1.7% (.017). If you are only reporting

LINE 25 Enter the portion of your Line 22 overpayment (minimum of $1.00) that

you wish to be credited to your spouse’s balance due for this filing year.

Form 531 - Local Earned Income And Net Profits Tax Return - 2011 Page 3

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