General Instructions For Filing Earned Income/net Profits Tax Return Form

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GENERAL INSTRUCTIONS FOR FILING EARNED INCOME/NET PROFITS TAX RETURN FORM
Please review the general instructions and follow the line by line instructions on the tax return. if you have any
questions concerning the filing of your return, please contact this earned income tax bureau.
Must round to the nearest whole dollar ($.50 and greater equals $1.00 likewise, $.49 and less equals $.00)
A.
WHO MUST FILE: Each resident who is 16 years of age or older. Gross earnings are taxable for the entire calendar year in which an individual
becomes 16 years of age. If you are retired or permanently disabled or on active duty military ( attach copy of orders), indicate this on the tax form
(include date of retirement, disability, etc.) and your name will be removed from our taxpayer file, if you have no taxable income.
B.
A RETURN MUST BE FILED EVEN IF: (a) You were a college student; (b) Your legal domicile is within the Bureau’s taxing jurisdiction, regardless
of where you reside or were employed; (c) All the tax was withheld by your employer; (d) You received a tax return form and had no taxable income.
If you had no taxable income, indicate NONE on line 7 of the tax return.
C.
PARTIAL YEAR RESIDENT: If you were a resident, or if your legal domicile was within our taxing jurisdiction for only a portion of the year you are
required to file a tax return form with this Bureau, listing the applicable portion of your earnings and net profits for the period you were a resident in
our jurisdiction, AND also file a return with the tax collector for the municipality and school district in which you lived the balance of the year, listing
that portion of your earnings and net profits applicable for that portion of the year. ( Attach copy of other tax return.)
D.
ESTATES: IF the deceased person resided or was domiciled within our taxing jurisdiction, the Administrator/Executor of the estate must file a return
and pay the tax for that portion of the year during which the deceased had earned income and/or net profits.
E.
ACCURACY, COMPLETENESS AND SIGNATURE: Accuracy and completeness are essential to avoid further communication and correspondence.
Complete your return in its entirety. THE RETURN MUST BE SIGNED OR IT WILL BE RETURNED TO YOU AS INCOMPLETE.
F.
FAILURE TO RECEIVE A TAX RETURN FORM from the Bureau is not a basis for not filing. Additional tax return forms may be obtained by
contacting the Bureau. FAILURE TO PROPERLY FILE THE RETURN MAY RESULT IN LEGAL ACTION.
G.
MULTIPLE OR DUPLICATE TAX RETURNS: If you receive more than one tax return, use the return with the correct Social Security number. Return
all tax returns in the same envelope, with the duplicate form marked “Wrong Social Security Number _ _ _ _ _ _ _ _ _ _ . DO NOT DESTROY A
TAX FORM as we will not know an error has been made.
H.
DUE DATE: Any tax due is payable upon filing the tax return and must be filed and paid by April 15, of the following year. If your Federal or Penna.
State Income Tax Return has been audited and adjustments made which affect the earned income tax, an amended tax return must be filed with this
bureau within 30 days after final adjustment.
I.
REFUNDS: Overpayments of more than $3.00 will be refunded by the Bureau. Refunds totaling $10.00 or more must be reported by us to the
Internal Revenue Service on Form 1099. Overpayments on one Spouse can be transferred to the other Spouse to offset the balance due.
J.
REMITTANCE: Should be made payable to MIFFCO, Tax Collectors, if more than $3.00.
Your cancelled check or Money Order is your receipt. Do not send cash. If your tax return balance due is $3.00 or less, the amount due
need not be remitted, however the return must be filed.
K.
INTEREST .5% AND PENALTY .5%=1% per month if paid after April 15, + $10.00 late filing fee.
TAXABLE EARNED INCOME INCLUDES BUT MAY NOT BE LIMITED TO: If your W-2 local wage box does not include the following, they must be added
to determine the correct taxable wages: DEFFERED COMPENSATION CONTRIBUTION IS TAXABLE IN THE YEAR OF THE CONTRIBUTION; Non-cash
fringe benefits; Bonuses; Jury duty; Reimbursed moving or business expenses; Taxes assumed by the employer; Incentive payments; (ie: stock options &
phantom stock plans); Fellowships & stipends; Vacation pay; Commissions; Fees; Honoraria; Severance pay; Reserve pay for military or national guard;
Personal use of a vehicle provided by employer; Distributions received prior to actual date of retirement (including but not limited to ESOP, PAYSOP, 401K,
403B, 475B etc.) shall be taxable on the employers contributed portion, IF the distribution is not rolled into an individual qualified retirement plan. Limited
liability company income is taxable.
NON-TAXABLE INCOME: SUB Pay; Unemployment benefits; Public assistance; Interest; Dividends; Scholarships: Active duty military pay; Social Security
benefits; Lottery winnings; Strike pay; Cost of group term insurance; Third party sick pay; Disability pay; Capital gains; S corporation income; Annuities;
Pensions; IRA pension payments received after retirement; Proceeds from insurance policies; Death benefit payments; Inheritance; Value of meals & lodg-
ing furnished domestic or other employees by the employer for the employer’s convenience; Profits from limited partnerships engaged in real estate, oil,
gas, mining leases or other similar investment, cafeteria plan, parsonage or housing plan.
ALLOWED EXPENSE DEDUCTIONS: NOTE: BUSINESS/MOVING EXPENSES TAKEN WITHOUT COMPLETE, PROPER SUPPORTING DOCUMEN-
TATION (PA UE AND/OR FEDERAL FORM 2106 & FEDERAL MOVING EXPENSE FORM 3903 WHEN NECESSARY) SHALL BE DENIED WITHOUT
FURTHER NOTIFICATION TO THE TAXPAYER. The Bureau generally follows the PA individual income tax regulations & guidelines for allowable employ-
ee business expense deductions. Ordinary, necessary, reasonable, actual & directly related business expenses not reimbursed by your employer will be
permitted.
LINE 4. OTHER TAXABLE INCOME: Day Labor, Executor fees, Director fees. ATTACH DOCUMENTATION.
LINE 4a. INFORMATION ONLY (Not Taxable): Sub-chapter S corporation and Passive Partnership Income, strictly for cross referencing with Pa. State
records.
UNALLOWED DEDUCTIONS: Include but not limited to Alimony; Babysitting/Childcare; Books/Magazines; Casualty & theft losses; Contributions; fees;
Interest; Laundry & dry cleaning; Life Insurance; Vehicle license fees; federal form 1040 itemized deductions; Tools for home use; Deferred compensation
plan contributions; Employee’s own contributions; Simplified employee pension plan (SEP); Educational expenses to qualify for employment of a new occu-
pation, trade or business; Federal form 1040 tax credits; Federal, state or local income taxes; Gift, Estate, Inheritance taxes or personal deduction or off-
set. One person’s loss may not be deducted from the spouse’s earnings or profit.
NET PROFITS FROM BUSINESS, PROFESSION, OR FARM; (No C-F Reconciliation) Net profits is net income from an operation of a business, profess-
ion, or other activity, except corporations, 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 business, profession, or other activity, but without deduction of taxes based on income. This would
be the income as reported on Federal and PA schedules C, F, or K-1 Guaranteed Payments. ATTACH ALL SCHEDULES.
OUT OF STATE EARNINGS AND PHILADELPHIA WAGES: A credit is allowed up to the Local Tax liability for the excess tax paid to another State over
the PA State Tax Liability (schedule G) and attach copies of both State Tax Returns and computation. For Philadelphia Wages a credit is allowed up to the
Local Tax Liability.

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