Instructions For Filing Form 214 - 2010 (Page 3 of 3) in pdf

18. RECIPROCAL AGREEMENTS: Virginia, Maryland, Ohio, West Virginia, New Jersey and Indiana have entered into reciprocal state income

tax agreements with Pennsylvania. This means that a resident of these states pays the state income tax only to the state wherein he/she

resides. Therefore you may not use income tax paid to any of these states as credit against the earned income tax.

19. OUT OF COUNTRY EARNINGS: Residents who pay taxes to “any foreign country” shall NOT be eligible for credits against the earned

income/compensation tax/net profits tax. Act 32 does not appear to have changed this for local tax purposes.

20. SHARED INFORMATION: This Bureau acquires and utilizes PA Dept. of Revenue individual income tax information to compare with your

earned income and net profits reported to this Bureau.

21. YOU MAY DOWNLOAD ALL QUARTERLY AND ANNUAL FORMS AND REFERENCE THE COMPLETE RULES AND REGULATIONS

ON OUR WEBSITE:

22. EXTENSIONS: AN APPLICATION FORM FOR AN EXTENSION TO FILE YOUR EARNED INCOME TAX FORM 214 MAY BE OBTAINED

BY TELEPHONE, FAX OR FROM OUR WEBSITE. NOTE: ALL TAX DUE MUST BE PAID BY THE APRIL 15 DEADLINE. THERE IS NO

EXTENSION FOR PAYMENT OF TAX DUE.

23. QUARTERLY DECLARATION FORM ES-77: IN ADDITION TO THE FORM 214 ANNUAL TAX RETURN, ALL TAXPAYERS WHO ARE

EITHER SELF-EMPLOYED OR WHOSE EMPLOYER DOES NOT WITHHOLD SUFFICIENT LOCAL TAX FROM THEIR EARNED INCOME TO

COVER THEIR TAX LIABILITY, AND WHO ANTICIPATE EARNING AT LEAST $10,000.00 ANNUALLY FROM WHICH THEY HAVE NO

LOCAL TAX WITHHELD ARE REQUIRED TO FILE THE QUARTERLY DECLARATION OF ESTIMATED EARNED INCOME TAX FORMS

(FORM ES-77) AND PAY ANY TAX DUE ON A QUARTERLY BASIS.

24. TAXABLE INCOME ITEMS: Salaries, Wages, Bonuses, Commissions, Back Pay, Severance Pay, Tips and Allocated Tips, Gratuities,

Fees (includes, but not limited to, Directors Fees, Executor’s/Administrator’s/Probate Fees), Overtime Pay, Incentive Payments, Early

Retirement Incentive Payments, Reserve and National Guard Inactive Duty Pay, Stand-By Pay, Golden Parachute Payments, Clergy Pay, Sick

Pay/Disability Pay (Only if continuation of Regular Wages), Retroactive Wage Increases, Salary Advances, Mortgage Assistance (in lieu of other

compensation), Moving Expense Reimbursement (If not required by your employer/or any excess of allowable expense),

Scholarships/Fellowships (May be taxable or non-taxable), Prizes/Awards (May be taxable or non-taxable), Stipend (May be taxable or non-

taxable), Stock Bonus Plans, Taxes assumed by the Employer on behalf of the Employee, Cafeteria Plans (Taxable portion: Any Benefits other

than Health Care), Deferred Compensation Plans, Lump Sum Distributions (Pre-retirement – Only that portion not already taxed – if not rolled

into another retirement plan), Deceased Taxpayers Wages or Earnings, Dependent Care Assistance, Non-cash payment for services rendered,

Non-compete agreements, Non-qualified Deferred Compensation Plans (When distribution is received), Any earned income/net profit received

the year in which taxpayer became deceased, Net Profits * (see Net Profits below).

25. NON-TAXABLE ITEMS: Active Duty Military Pay, Cafeteria Plans (Health Care Portion Only), Clergy Housing, Personal Use of Company

Vehicle, Gambling/Lottery Winnings, Group Term Life Insurance, Jury Duty Pay, Investment Income (Including PA S-Corporations), Rental

Income (On Schedule E), Retirement Benefits (after retirement), Sick Pay (Third Party), Short Term/Long Term Disability (Third Party), Social

Security Benefits, Strike Benefits, Worker’s Compensation Benefits, Unemployment Compensation

26. ALLOWABLE EXPENSES: Unreimbursed Business Expenses, as determined by the PA Dept. of Revenue regulations and rulings, shall

be allowed as deductions against Earned Income. The PA Schedule UE form(s) showing allowed expenses must accompany the Local Income

Tax Return. NOTE: Complete proper supporting documentation is required or the expenses will be denied without further notification.

27. UNALLOWED DEDUCTIONS: Include, but are not limited to, Alimony; Babysitting/child care; Books/Magazines; Casualty & theft losses;

Charitable Contributions; Clothing suitable for everyday use; Commuting & travel to and from work, between jobs, classes or military reserves;

Dues or fees to clubs; Employment fees; Interest; Laundry and Dry Cleaning; Life insurance; Vehicle license fees; Federal form 1040 itemized

deductions or tax credits; Tools for home use; Deferred compensation plan contributions by employee; Simplified employee pension plan (SEP);

Educational expenses to qualify for employment, a new occupation, trade or business; Federal, state or local income taxes; Gift, estate,

inheritance or personal taxes; Medical or dental expenses; Office at home for the convenience of the employee; Personal and family expenses.

S-corp. loss or out-of-state credit due to S-corp. taxation cannot be a deduction or offset. One person’s loss may not be deducted from the

spouse’s earnings or profit.

28. NET PROFITS: Effective with tax year 2009, pursuant to PA Act 32, business losses cannot be used to offset earned income. A loss

from one business, however, can be used to offset net profits from another business.

29. REMITTANCE ADDRESSES: Please apply the correct label to your return envelope. Separate post office boxes are used to speed the

processing of returns. The labels are found on the back of the reply envelope. For York County residents, payment returns should be sent to

PO Box 15627; No Payment/No Refund Due, PO Box 15628; Refund Due, Po Box 15629. Adams County residents use the following post

office boxes: Payment Due, PO Box 4374; No Payment/No Refund Due, PO Box 4344; Refund Due, PO Box 4343.

Bermudian Springs

School District Residents: send your returns to the York office.

IMPORTANT: LOCAL TAX OFFICERS RETAIN THE RIGHT TO VERIFY/AUDIT ALL AMOUNTS REPORTED ON TAX

RETURNS

TAXPAYER NOTICE: YOU ARE ENTITLED TO RECEIVE A WRITTEN EXPLANATION OF YOUR RIGHTS WITH REGARD TO THE

ASSESSMENT, AUDIT, DETERMINATION, REVIEW, APPEAL, ENFORCEMENT, REFUND AND COLLECTION OF LOCAL TAXES BY

CONTACTING THE YORK ADAMS TAX BUREAU AT EITHER LOCATION.

Instructions For Filing Form 214 - 2010 Page 3

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