Form Rev-631 - Tax Forgiveness For Pa Personal Income Tax (Page 2 of 2) in pdf

ELIGIBILITY INCOME TABLES

personal income tax return. The instructions for

taxable interest. They did not make any PA esti-

ELIGIBILITY INCOME TABLE 1. Unmarried, Separated and Deceased Claimants

filling out PA Schedule SP are included in PA-40

mated tax payments. Their joint PA tax return

If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

instructions, available on the department’s web-

should show they owe $368. However, they

$6,500

$6,750

$7,000

$7,250

$7,500

$7,750

$8,000

$8,250

$8,500

$8,750

site,

YOU

qualify for 100 percent Tax Forgiveness, if they

DEPENDENT CHILDREN

Taxpayers eligible for PA Tax Forgiveness may

file a PA tax return and PA Schedule SP. They do

$16,000

$16,250

$16,500

$16,750

$17,000

$17,250

$17,500

$17,750

$18,000

$18,250

also qualify for the federal earned income tax

not have to pay any PA personal income tax.

credit. Visit the Internal Revenue Service’s web-

$25,500

$25,750

$26,000

$26,250

$26,500

$26,750

$27,000

$27,250

$27,500

$27,750

site, , for more information.

Example 4

$35,000

$35,250

$35,500

$35,750

$36,000

$36,250

$36,500

$36,750

$37,000

$37,250

James and Anna divorced during the tax year.

$44,500

$44,750

$45,000

$45,250

$45,500

$45,750

$46,000

$46,250

$46,500

$46,750

PA Tax Forgiveness Examples:

They have one dependent child who lives with

$54,000

$54,250

$54,500

$54,750

$55,000

$55,250

$55,500

$55,750

$56,000

$56,250

Example 1

Anna. By agreement under federal rules, James

$63,500

$63,750

$64,000

$64,250

$64,500

$64,750

$65,000

$65,250

$65,500

$65,750

Keisha is a single parent. She has twin boys she

claims the child on his federal tax return. James

claims as dependents on her federal income tax

$73,000

$73,250

$73,500

$73,750

$74,000

$74,250

$74,500

$74,750

$75,000

$75,250

has PA taxable compensation of $16,200, and

return. She earns PA taxable compensation of

$82,500

$82,750

$83,000

$83,250

$83,500

$83,750

$84,000

$84,250

$84,500

$84,750

$23,000. PA income tax of $706 was withheld

$497 of PA personal income tax was withheld.

$92,000

$92,250

$92,500

$92,750

$93,000

$93,250

$93,500

$93,750

$94,000

$94,250

from her compensation. She has no other eligi-

Anna has PA taxable compensation of $8,900,

Then your Percentage of Tax Forgiveness and the Decimal Equivalent is:

bility income except her compensation. She uses

and $273 of PA personal income tax was with-

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Table 1 for PA Schedule SP and qualifies for 100

held. Neither has any other eligibility income.

percent Tax Forgiveness.

1.0

.90

.80

.70

.60

.50

.40

.30

.20

.10

They both file their PA tax returns as single.

NOTE: If claiming more than nine dependent children, review the PA Personal Income Tax Guide on the depart-

Example 2

James files as unmarried on his PA Schedule SP

ment's website.

Charla and William were separated the last two

(using Table 1), claims one dependent and qual-

months of the tax year; however, they are not

ELIGIBILITY INCOME TABLE 2. Married Claimants, even if filing separately

ifies for 90 percent Tax Forgiveness. Anna does

divorced. They have three dependent children

If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

not qualify for Tax Forgiveness.

Charla claims on her federal tax return. She has

YOU &

PA taxable income of $22,000 from her business,

$13,000

$13,250

$13,500

$13,750

$14,000

$14,250

$14,500

$14,750

$15,000

$15,250

Example 5

SPOUSE

and she made estimated payments totaling

Roberto and Maria are married, live together and

DEPENDENT CHILDREN

$676. William earns $16,000 in taxable compen-

$22,500

$22,750

$23,000

$23,250

$23,500

$23,750

$24,000

$24,250

$24,500

$24,750

have two children they claim as dependents on

sation. They do not have any other income for

their federal tax return. Roberto earns PA tax-

$32,000

$32,250

$32,500

$32,750

$33,000

$33,250

$33,500

$33,750

$34,000

$34,250

Tax Forgiveness purposes. Although they file

their PA tax returns separately, Tax Forgiveness

able compensation of $20,000, from which PA

$41,500

$41,750

$42,000

$42,250

$42,500

$42,750

$43,000

$43,250

$43,500

$43,750

requires them to use the married claimants table

income tax of $614 was withheld. Maria's small

$51,000

$51,250

$51,500

$51,750

$52,000

$52,250

$52,500

$52,750

$53,000

$53,250

and report their total joint eligibility income on

business realized a net profit of $7,000, and she

$60,500

$60,750

$61,000

$61,250

$61,500

$61,750

$62,000

$62,250

$62,500

$62,750

their separate PA Schedules SP. With total eligi-

made PA estimated payments totaling $224.

$70,000

$70,250

$70,500

$70,750

$71,000

$71,250

$71,500

$71,750

$72,000

$72,250

bility income of $38,000, Charla, who claims the

They have joint investment income of $700, only

$79,500

$79,750

$80,000

$80,250

$80,500

$80,750

$81,000

$81,250

$81,500

$81,750

three dependents, uses Table 2 and qualifies for

$300 of which is taxable for PA purposes. Their

100 percent Tax Forgiveness. However, William

$89,000

$89,250

$89,500

$89,750

$90,000

$90,250

$90,500

$90,750

$91,000

$91,250

total PA taxable income is $27,300 and their

does not qualify for Tax Forgiveness.

$98,500

$98,750

$99,000

$99,250

$99,500

$99,750

$100,000

$100,250

$100,500

$100,750

total eligibility income is $27,700. They apply for

Example 3

Then your Percentage of Tax Forgiveness and the Decimal Equivalent is:

Tax Forgiveness as married on a joint tax return.

Jack and Amy are married and retired. They

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Using Table 2, they qualify for 100 percent Tax

have pension and Social Security income. The

1.0

.90

.80

.70

.60

.50

.40

.30

.20

.10

only other income they have is $12,000 in PA

Forgiveness.

NOTE: Tables include a $9,500 allowance for each dependent.

Form Rev-631 - Tax Forgiveness For Pa Personal Income Tax Page 2

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