Instructions For Local Earned Income Tax Return Form - Pennsylvania (Page 2 of 2) in pdf

LINE 5: SUBTOTA!: Subtract line 4 from line 3. ll bss than zero, enter zero.

LINE 6: NET PROFITS FROM BUSINESS

DOCUUENTATION REOUIRED: 1099(s), Federal schedulee C, F, or 1065 K-l must be enclosed (photocopies are accepted).

The net profits of a business, trade, profession, or other activity shall be computed by subtracting from gross receipts the cost of

goods sold and all ordinary and necessary expenses of doing business. Generally, a business deduction which is not permitted by

the Federal Govemment for income tax purposes will not be alkrwed. Not all setf-employed income is includable as taxable eamings.

Rentals lrom real estate and lrom personal property leased with the real estate is not included, unless reportable on Schedule C, or

if the taxpayer is in the business of renting real estate then file page 1 ol Schedule E. Gain or loss trom the sale of capital assets is

not included in the computation of net profits.

LINE 7: OTHER INCOME: Enter all other income not included on your W-2 net profit. Other income includes bui is not limited to eamings

reported on 1O99 Misc., Tips or Cash Payments Received lor Services Rendered.

LINE 8: TOTAL EARNED INCOME subject to tax Add lines 5, 6 and 7.

L I N E g : T A X L I A B I L I T Y : M u t t i p l y l i n e B b y t a x r a t e p r i n t e d o n t h e t a x r e t u r n . F o r e x a m p l e , i f

1 7 " u s e . O 1 , i l ' l l 2 / " u s e . O O 5 , i l 1 . 9 / o u s e . O 1 9 .

LINE 10: QUARTERLY ESTIMATED PAYMENTS: List any quarterly estimated payments made to date for appropriate filing year.

LINE 11: EARNED INCOME TAX WITHHELD: You may claim credit for local tax withheld as shown on your W-2 lor unless you are employed

in the City of Erie. Please see note below.*

*NOTE: The City of Erie has approved an Act 205 tax for the cities distressed pension plan. Erie employers should be withholding an addi-

tional .18ol" from wages of all individuals that work in the city. This additional tax will be included with the local withholdings on your

W-2 but cannot be used as a credit lor your Local Earned Income Tax liability. Multiply the local wage by the Eamed Income Tax rate

(.0O5 Townville, .019 Cambridge Boro, & .O'l all other municipalities) and include this amount on line 11 ot the tax form. lf you reside

in Gambridge Boro and your employer is not withholding 1.9%, only 17" of your wage can be included on line 11 ol the tax form.

LINE 12: TOTAL: Enter the total of lines 1 0 + 1

'l .

LINE 13: OVERPAYMENT OF TAX: lf you have an overpayment of taxes in excess of $1.00, you will receive a refund. A 1099 will be issued to

the Federal Government for any credit or refund in excess of $10.00.

Lf NE 14: AMOUNT OF TAX DUE: lf tax (line 9) is larger than your credits (line 12), enter amount of tax due. lf less than $1.00, ENTER ZERO.

LINE 15: INTEREST AND PENALTIES: lf for any reason the tax is not paid when due, interest at the rate of six percent per annum on the

amounl of said tax, and an addition penalty of one-half of one percent of the amount of the unpaid tax for each month or fraction

thereof during which the tax remains unpaid, shall be added and collected. A late filing fee will be charged for any return received after

the due date. NSF CHECK RETURN:

LINE 16: TOTAL AMOUNT DUE: The total ol lines 14 + 15. OMIT lF LESS THAN $1.00.

NOTE:

All accounts are subject to audit and review. Failure to properly complete, sign and date this return may subject the taxpayer to a

fine up to $5OO.O0 plus costs or days in jail. Local or city copy of W-2 ancUor supporting schedules must be enclosed with tax retum

(Photocopies of W-2s and schedules are accepted).

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Instructions For Local Earned Income Tax Return Form - Pennsylvania Page 2

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