Scranton Earned Income Tax Return Form - Income Tax Division

2008 Scranton Tax Return

FINAL EARNED TAX RETURN - INSTRUCTIONS FOR FINAL INCOME

This return must be completed and ﬁled by all persons subject to the tax, prior to April 15, even though the entire tax was

withheld by employer and/or no tax due.

1. WHO MUST FILE: Every person with earned income, regardless of whether tax is due or not, or if tax has been with-

held by employer. Joint Filing (i.e. combining income, etc) is NOT PERMITTED.

2. To ﬁle this return, just simply ﬁll out the return numbers 1 through 17 putting down the information that is requested. Be

sure to attach copies of W-2s and all applicable forms.

3. Employees’ Deductions for Expenses Directly Connected with Employment. Any employees claiming expenses

must attach a copy of PA Department of Revenue Schedule UE, plus Federal form 2106, and Federal Form 3903 for

Moving Expenses.

4. OFFSET BUSINESS LOSS AGAINST W-2 EARNINGS. A taxpayer may offset a business loss against salaries,

wages and other compensation (W-2 earnings). This offset is allowed based on the PA Supreme Court decision in

the O’Reilly vs. Fox Chapel School District case ﬁled March 16, 1989. Please note! In a footnote to it’s decision, the

Supreme Court also afﬁrmed that a taxpayer cannot offset losses from one business against proﬁts from another as

decided in the Aronson vs. City of Pittsburgh case.

5. New for 2003; ACT 166 Act 166 amends the deﬁnition of earned income as deﬁned in Act 511, known as the Local

Tax Enabling Act. Earned income shall be determined by the PA Dept. of Revenue under Section 303 of the Act of

March 4, 1971 (P.L. 6, No. 2) known as the “Tax Reform Code of 1971” and regulations in 61 PA Code Pt. 1 Article V

(relating to personal income tax).

TAXABLE INCOME (USE THESE ITEMS)

NON-TAXABLE INCOME (DO NOT USE)

1. Salaries, Wages, Commissions, Bonuses,

1. Social Security Beneﬁts

Tips, Stipends, & Fellowships.

2. Pension

2. Fees (i.e. Executors, Administrators, Directors & Consulting)

3. Capital Gains or Losses

3. Drawing Accounts

4. Interest, Dividends

4. Tips Received

5. Active Military Service Pay Earned

5. Net Proﬁt of Business, Profession and

Outside of Pennsylvania

Other Activity (Submit Schedules)

6. Income from Stocks, Trusts

6. Taxes Assumed by the Employer

7. Death Beneﬁts

7. Incentive Payments

8. Proceeds of Life Insurance Policies

8. Tax Shelter Annuities

9. Gifts or Bequests

9. Compensation in the form of Property shall be

10. Public Assistance or Unemployment Comp

Taxed at its Fair Market Value.

11. Clergy Housing

10. Income from covenant not to compete.

12. Rents derived from mere “passive” or

11. Active Military Pay Earned In Pennsylvania

“investment” ownership or subleasing of

12. Guaranteed payments to partners

real estate.

Worksheet (A) For Individuals Employed in Another State

EARNED INCOME: Taxed in another state as shown on the state tax return.

Credit will be disallowed if copy of state return is not attached . . . . . . . . . . . . . . . . . . . . . . . . .

_________________

3.4%

Local tax as speciﬁed on the front of this form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

_________________

Tax Liability to other state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________________

PA Income Tax (Line 1 x PA Income Tax rate for year being reported). . . _________________

CREDIT to be used against Local Tax

(Line 3 minus Line 4) On Line 12 of Form S-1, enter this amount

or the amount on Line 2 of Worksheet, whichever is less (If less than zero, enter zero). . . .

_________________

Personal audit may be required if all W-2’s and Federal Schedules are not enclosed.

Scranton Earned Income Tax Return Form - Income Tax Division - 2008 Page 2

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