Instructions And Definitions For Filing Final Return For Local Earned Income Tax printable pdf download

INSTRUCTIONS AND DEFINITIONS FOR FILING FINAL RETURN FOR LOCAL EARNED INCOME TAX

FOR FILING ASSISTANCE PLEASE CALL: 610-372-8439

OR VISIT OUR WEBSITE:

** Special Rate Instructions for Union Township residents:

Berks EIT Bureau is the local earned income tax collector for the Daniel Boone Area School District's portion only. This results

in all Union Township residents being required to file two (2) local tax returns. One with Berks EIT, for only the school distncts

one half percent share of the tax; the other, for the municipal share must be filed with their collector, Berkheimer Assoc. When

filing for the school district's share only, all instructions remain the same except when calculating tax and tax withheld. These

are calculated at the one half percent rate. Form W-2(s) that indicate 1% withheld wil be given credit for only half, not the full

1%.

FILING INSTRUCTIONS:

Line 1 -

Prorated returns, Philadelphia Tax Credit, and Out-of-State Credit refer to worksheet on reverse side oftax return.

Earned Income from W-2(s) (both spouses): All earned income (gross earnings) is taxable and is defined as income received

for personal services rendered, irrespective of where such services are performed. Refer to Pennsylvania State Tax

instructions for line 1 of Form PA-40. An exception is Clergy housing allowance which is not taxable for local earned income

tax purposes.

Line 2-

Allowable Unreimbursed Employee Business Expenses: Expenses as defined by the Commonwealth of Pennsylvania. All

supporting documents, as required by PA UE-1 or UE-2 (example Federal Form 2106 for mileage) rnust accompany the original

filing.

Note: Should the taxpayer omit the required expense deduction forms, or if the expense deduction forms are not fully

completed, the expense deduction shall be systematically disallowed and denied without notification to the

taxpayer. A taxpayer's UE Expenses cannot exceed his/her wage.

Line 4 - Other Earned Income: Tips Received; Director's Fees; Taxes Assumed by Employer; Stock Options (when not

declared on W-2 as wage); Incentive Payments; Fellowship (When Compensation for Services); Compensation in the Form of

Property (taxed on its Fair Market Value); Executor's Fees; Jury Duty Pay; Stipends; and various other employer paid fnnge

benefis (exclude premiums on excess Group Life Insurance). Enclose applicable 1099-MISC.

Line 5 - Net Profis: Non-passive income only. Each business, profession, partnership, etc. must be reported separately. Guaranteed

payments to partners are taxable as earned income.

Line 6 - Net Losses from non-passive income only. Do not include losses from S-Corps; rents; and/or other investments.

Losses can be used to offset net profits. Wages may not be used to offset losses. One person's loss can not offset his/her

spouse's net profit. Refer to PA Act 32 of 2008. Guaranteed payments to partners are taxable as earned income.

Line 9 - Do not include tax withheld by the City of Pittsburgh. You must pay our Bureau the tax due and apply to the City of Pittsburgh

for a refund of the tax withheld in error. Do not

include Local Services Tax.

Credit will be given up to 1% of

wages taxed by

a distressed municipality.

Line 10- Taxes Paid to Other States or Philadelphia: See reverse side of tax form for worksheet and instructions.

Line 13- Incomplete or inaccurate requests for refunds shall be adjusted without notification to the taxpayer.

Line 14- Interest and Penalty: If you file after April 15, 2010 and owe tax, add interest of 6% per annum and a penalty of one half of 1 %

per month of Line 12. Failure to comply by the due date may result in additional cost collection fees. A copy of the Cost

Collection Fees Schedule is available upon request.

Line 15- Balance Due: Line 12 plus Line 14. Enclose check or money order, payable to "Berks E.I.T. Bureau", with this return if

you owe

$1.00 and over.

CREDIT CARD PAYMENTS: You may elect to pay your tax balance due by credit card (VISA, MasterCard, American Express and

Discover) through Official Payments Corp. It is a simple, safe, and convenient payment option. There is a fee charged by Official

Payments Corp. for utilizing this method of paying any tax due. Payments must be made via a link through our website

ww.berkseit.comorbyphone1-800-272-9829.lfyouselectthephonepaymentprocedure.theJurisdictionCodeis4845.At

several points in the transaction process, you are informed of the amount that Offcial Payments Corp. is charging. When you use

this service, two line items wil appear on your credit card bilL. One is for the amount paid to the Berks EIT Bureau for tax due and

the other is for the fee charged by Official Payments Corp. If you have any questions about this method of payment, please contact

our office. NOTICE: YOU ARE STILL REQUIRED TO FILE YOUR LOCAL TAX RETURN WITH APPROPRIATE SUPPORTING

DOCUMENTATION. Please check the payment by credit card box on the tax form and return envelope.

TAXPAYER NOTICE: You are entitled to receive a written explanation of your rights with regard to the audit, enforcement, refund, and collection of local

taxes collected by the Berks E.I.T. Bureau by callng the Bureau at 610-372-8439 during the hours of 8:00 A.M. to 5:00 P.M., Monday through Friday.

Instructions And Definitions For Filing Final Return For Local Earned Income Tax

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