Looking for a Inspection Form Templates? Download it for free!

PA-40 NRC-AE (11-07)

PA-40 NRC-AE, CONSOLIDATED PERSONAL INCOME TAX RETURN

FOR QUALIFIED ELECTING NONRESIDENT

PROFESSIONAL ATHLETES, NON-PLAYER PERSONNEL,

OFFICIALS & ENTERTAINERS

Purpose

The purpose of the PA-40 NRC-AE form is to simplify the filing requirements for athletic and entertainment

organizations or entities that have nonresident employees who meet the filing requirements for a PA-40,

Pennsylvania Personal Income Tax return.

CAUTION: The PA-40NRC-AE Form is not intended for use by any resident or nonresident individual filing

on his/her own behalf. A resident or nonresident individual filing on his/her own behalf must use Form PA-

40, PENNSYLVANIA PERSONAL INCOME TAX RETURN, to file an income tax return for compensation tax-

able to Pennsylvania for performances or services completed in, or games played in Pennsylvania.

Who Must File A PA-40 Pennsylvania Personal Income Tax Return?

An individual must file a PA tax return if he or she received total PA gross taxable income in excess of $33

during 2007, even if no tax is due. In lieu of this individual filing requirement, a nonresident individual may

be able to file as a participant in a consolidated tax return that combines the filing of many nonresident tax-

payers into a single filing (see the section on Effect of a Consolidated Group Return). To determine if your

entity has employees with income in excess of the filing requirement of $33 of gross taxable income, see

the Pennsylvania Personal Income Tax Guide (PA PIT Guide), Chapter 7, for more information on what

is taxable compensation for a nonresident individual for PA purposes and how to calculate the amount of tax-

able compensation for a nonresident individual for PA purposes.

Who May Use The PA-40 NRC-AE Form?

A professional sports team may file a PA-40 NRC-AE on behalf of its qualifying electing nonresident play-

ers or qualifying nonresident non-player personnel who receive wages or compensation. A league may also

elect to file on behalf of its qualifying nonresident officials or other qualifying nonresident league personnel

who receive wages or compensation. Professional entertainment entities may also elect to file on behalf of

its nonresident entertainers who receive wages or compensation. Sports teams, league offices and profes-

sional entertainment entities will be known collectively as an “entity” throughout the remainder of this doc-

ument unless otherwise noted. Nonresident players and non-player personnel along with nonresident officials

and nonresident entertainers will be known collectively throughout the remainder of this document as “non-

resident individuals”. Each nonresident individual who wishes to participate in the PA-40 NRC-AE must meet

the following requirements:

1. The nonresident individual must be an individual whose tax year is the calendar year.

2. The nonresident individual and the nonresident individual’s spouse must each be a domiciliary of a

state or country other than Pennsylvania for the entire taxable year.

3. The nonresident individual and the nonresident individual’s spouse must each be a domiciliary of a

state or country other than the reciprocal states of Indiana, Maryland, New Jersey, Ohio, Virginia and

West Virginia.

4. The nonresident individual must have no PA taxable income derived from, or connected with, PA

sources other than his or her apportioned share of compensation for the calendar year.

5. The nonresident individual must elect to join in the filing of the PA-40 NRC-AE.

6. The nonresident individual must not be able, by election or non-election, to participate in the NRC-

AE filing by any other entity.

IMPORTANT: You may not use this form for nonresident individuals with qualified Unreimbursed Business

Expenses. Individuals who wish to claim qualified Unreimbursed Business Expenses are required to file

their own separate PA-40 Pennsylvania Personal Income Tax returns with the Department and include PA

Schedule UE with those returns.

Professional Sports Team

A professional sports team is any one of the major, minor or independent league teams including, but not

limited to, baseball, basketball, football, hockey or soccer. Employees of a professional sports team include,

Form Pa-40 Nrc-Ae - Pa-40 Nrc-Ae, Consolidated Personal Income Tax Return For Qualified Electing Nonresident Professional Athletes, Non-Player Personnel, Officials And Entertainers

Related Articles

Related forms

Related Categories