Professional Tax Preparer Guide

Professional Tax Preparer¡¯s Guide

for Local

Earned Income Tax 2023 Filing Season

save time

file online

efile.

Contents

Part-year returns...................................................................................................................................................3

Part-year worksheet..............................................................................................................................................4

Married, filing jointly...............................................................................................................................................5

Line 1: Gross Compensation - PA taxable wages.................................................................................................6

Line 9: PSD codes and local tax liability................................................................................................................7

Line 10: EIT withheld from payroll - resident and non-resident withholding..........................................................8

Line 12: Credit for taxes paid out-of-state.............................................................................................................9

Calculating and applying credit for income tax paid out-of-state.........................................................................10

Case study: PA resident employed in New York State........................................................................................11

Taxable wages reported to New York on W-2..................................................................................................12

Calculating PA wages reported to New York on W-2.......................................................................................13

Applying out-of-state credits............................................................................................................................14

Line 12: Credit for tax paid to an out-of-state municipality..................................................................................15

Line 13: Payment and credits..............................................................................................................................16

Line 14 and 15: Overpayment, refunds, transferable credits..............................................................................17

Checklist - Confirm before you file......................................................................................................................18

Contact us...........................................................................................................................................................19

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Taxpayer Annual Local Earned Income Tax Return

Part-Year Returns

(10-xx)

9 Taxpayers who move during the year must file a part-year return for each municipality

9 Pro-rate/allocate taxable income and tax liability for each resident municipality

9 Report separately income and tax paid/due for each resident municipality

9 Provide complete street address for each part-year residence

9 Use correct PSD Code for each municipality to determine tax rate and appropriate distribution of tax

9 Use full months, not fraction of month

(10-xx)

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Taxpayer Annual Local Earned Income Tax Return

Part-Year Returns, Part-Year Resident Schedule

S-CORPORATION REPORT

TAXPAYER

Report passive or unearned S-Corporation income (losses)

that were reported on your PA-40 Return.

TAXPAYER SPOUSE

.0 0

$

.0 0

$

PART-YEAR RESIDENT SCHEDULE

If you moved to another municipality, use this schedule to calculate income and taxes owed to each taxing jurisdiction. File one local earned

income tax return for each PA municipality. Report taxable income, tax paid and tax liability for each PA municipality separately on each return.

Current Residence

(street address)

(required)

# months at this address

(municipality, State, ZIP)

2. Use full months, not fraction of month

Use full # months; not fraction of month

Employer (1)

Income

Withholding

$

$

divided by 12 months X

divided by 12 months X

(months at this address) = $

(months at this address) = $

Employer (2)

Income

$

divided by 12 months X

(months at this address) = $

Withholding

divided by 12 months X

(months at this address) = $

$

PSD Code - Current Residence

Use full # months; not fraction of month

Total Local Tax Withheld $

Put the Total Income on Line 1 and the Tax Withheld on Line 10 of the Local Earned Income Tax Return for your current residence taxing jurisdiction.

Previous Residence

(street address)

(required)

# months at this address

(municipality, State, ZIP)

Employer (1)

Income

$

divided by 12 months X

(months at this address) = $

Withholding

$

divided by 12 months X

(months at this address) = $

Income

$

divided by 12 months X

(months at this address) = $

Withholding

$

divided by 12 months X

(months at this address) = $

Use full # months; not fraction of month

PSD Code - Previous Residence

Use full # months; not fraction of month

Employer (2)

FAQ

Use full # months; not fraction of month

Previous Residence Total Income $

Visit

for answers to frequently asked questions

Total Local Tax Withheld $

Put the Total Income on Line 1 and the Tax Withheld on Line 10 of the Local Earned Income Tax Return for your previous residence taxing jurisdiction.

LINE 10: LOCAL EARNED INCOME TAX WITHHELD WORKSHEET

Complete worksheet if you work in an area where the non-resident tax rate exceeds your home resident rate

Example

1.

(1)

(2)

(3)

Local Wages

W-2 Box 16

Tax Withheld

W-2 Box 19

Resident EIT Rate

Tax Form Line 9

$10,000.00

$130.00

1.25%

(4)

(5)

Workplace Location Column (4) minus

¡°Non-Resident¡±

Column (3)

EIT Rate

If less than 0 enter 0

1.30%

0.05%

(6)

(7)

Disallowed

Credit Allowed for

Withholding Credit

Tax Withheld

Col (1) times Col (5) Col (2) minus Col (6)

$5.00

2.

3.

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3. Supply complete address for each

residence (no PO Boxes)

4. Provide correct PSD Code for each

resident municipality

Use full # months; not fraction of month

Current Residence Total Income $

1. Account for the entire tax year by

number of months at each address.

¨C 4amount

¨C

TOTAL Enter this

on Line 10

LINE 12: OUT-OF-STATE TAX CREDIT WORKSHEET (see Instructions)

$125.00

5. Pro-rate/allocate income, withholding

and tax due for each resident

municipality.

6. Provide documentation (pay stubs, etc.)

to account for non-uniform earnings

and/or withholdings

7. File a separate return for each resident

municipality

8. Indicate number of months at each

address on front of both returns.

Taxpayer Annual Local Earned Income Tax Return

Married, Filing Jointly

9

PA law prohibits spouses from combining income and/or tax withholding

9

Spouses may file their individual tax returns at one time, on the same tax return

9

Each spouse must provide supporting documentation

9

Each spouse must sign the return

9

One spouse may credit overpayment to the other spouse¡¯s tax balance, if

applicable

9

This option is only for spouses who report the same legal residence(s) for the

entire tax year (otherwise, select the Married, Filing Separately)

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