Instructions For Final Return Form - Pennsylvania Department Of Revenue printable pdf download

PENALTY AND INTEREST CHARGES

INSTRUCTIONS FOR FINAL RETURN FORM

All returns filed after April 15 will be assessed penalty and interest charges at

the rate of 1% per month. Additional late fees, penalty and interest charges will

Every resident who had taxable income or net profits during any part of

be assessed for residents who have failed to file or make proper tax payments.

the year must file a final tax return form. THIS RETURN MUST BE

At least 85% of the earned income tax liability must have been met through

FILED EVEN IF TAX WAS FULLY WITHHELD BY YOUR EMPLOYER

quarterly payments in order to avoid penalty and interest on unpaid taxes.

OR IF NO ADDITIONAL TAX IS DUE. Two-Income households may file

on the same form provided separate columns are used. Merging of in-

NON-TAXABLE INCOME (DO NOT INCLUDE THESE ITEMS): personal inter-

come/loss is not permitted.

est and dividend income; social security benefits; pensions; disability benefits;

active military pay; third party sick pay; lottery winnings; death benefit pay-

All returns must be postmarked or delivered on or before April 15 of the

ments; gifts or bequests; unemployment compensation; supplemental unem-

following tax year to avoid penalty, interest and late charges.

ployment benefits (SUB); public assistance and income from stocks or trusts.

LINE 1 – TAXABLE EARNED INCOME AND COMPENSATION includes

DOCUMENTATION

wages; salaries; commissions; bonuses; tips; fees; vacation pay; hono-

Documentation of earnings (W2 statements and forms 4797 and/or 1099), net

raria; severance pay; incentive payments; profit distributions; sick pay

profits (Schedule C, E, F or K-1), and/or business expense (Pennsylvania De-

(other than third party sick pay); parsonage/housing allowance payments;

partment of Revenue Schedule UE, Federal Form 2106, and other federal and

allowance payments; taxes assumed by the employer for the employee;

state forms as applicable) must accompany tax returns. TAX RETURNS

exercised stock options from employers; employer-reimbursed moving

WITHOUT PROPER DOCUMENTATION WILL BE CONSIDERED INCOM-

expenses; deferred income for pensions and annuities; and other forms of

PLETE AND WILL NOT BE PROCESSED. REFUNDS OR CREDITS WILL

compensation as provided by the employer whether reported on W2 state-

NOT BE ISSUED WITHOUT PROPER DOCUMENTATION. Indicate the name

ments or 1099 forms.

of the taxing district receiving any money withheld on withholding statement, or

on an attached sheet of paper. Taxpayers must supply the original document

LINE 2 – DEDUCTIONS FOR UNREIMBURSED BUSINESS EXPENSES

or a copy of the document – the Tax Office will not make copies or return docu-

ARE PERMITTED AS FOLLOWS: business related auto expenses; union

ments.

dues; professional license fees; professional dues; small tools required for

employment; and uniforms or work clothing not suitable for everyday use.

CREDIT FOR TAXES TO OTHER JURISDICTIONS

Business expenses will not be processed as a deduction without

Payments by residents of a tax on income to Philadelphia, any state other than

documentation.

Attach PA Schedule UE Form and Federal Form

Pennsylvania (with the exception of New Jersey) or any political subdivision

2016. Contributions to deferred income plans such as IRA’s; 401K’s,

located outside Pennsylvania can be credited against this tax. The credit can

and Keoghs cannot be deducted from taxable income. PERSONAL

not exceed local tax rate and no refunds will be allowed on excess. Calculate

EXPENSES ARE NOT DEDUCTIBLE.

credit on chart below for taxes paid to other states and supply copies of Penn-

sylvania and other state tax returns.

LINE 4 – OFFSETS AGAINST EARNED INCOME

A business loss can be offset against earned income/compensation but

CHECK NAME, ADDRESS, RESIDENT MUNICIPALITY, AND SOCIAL SECU-

not against the profit earned in another business. A business profit can-

RITY NUMBER

not be offset by a business loss. Losses from Sub-Chapter S income can-

Your social security number is important for the prompt and accurate process-

not be offset against earned income. Do not include corporate income or

ing of this return. Make any corrections to the name, address, resident munici-

loss.

pality, and social security number information on this return.

LINE 6 – TAXABLE NET PROFIT includes net profits from a business,

SIGNATURE REQUIRED

profession or farm; rental income; royalties; patents and fees; and part-

All returns must be signed and dated by the taxpayer(s) only. Power of

nership or joint venture income. In addition, taxable gains from the sale

Attorney is required for second party signing. Improperly executed returns will

of business property shall be reported for earned income tax purposes

be considered unfiled and delinquent.

in the year of sale to the extent that they were created by depreciation

deductions (tax benefit) previously deducted to determine net profits.

FAILURE TO FILE

Supporting documents shall include but not be limited to Federal Form

FAILURE TO RECEIVE A TAX RETURN DOES NOT RELIEVE THE TAX-

4797, Schedule C, D, E, F, K-1, and related schedules. Sub-Chapter S

PAYER OF THE RESPONSIBILITY OF FILING A TAX RETURN AND OF

income will be taxed to the extent that it represents income for services

PAYING THE TAX. Failure to file, upon conviction, may result in a fine up

rendered to a corporation by a party to the extent that a reasonable salary

to $500.00 per year, plus penalty, interest, and cost of collection. (Local

is not taken that is otherwise subject to the earned income tax.

Tax Enabling Act, P.L.1257)

LINE 10 – OVERPAYMENT

Your REFUND amount, if any, appears on line 10 of the tax return.

OVERPAYMENTS will be credited to other tax liabilities, or refunded. No

refunds under $1.00 will be issued.

LINE 11 – 13 – TAX PAYMENT

Your remaining tax liability appears on Line 13 of the tax return. If paying

jointly, insert amount enclosed on Line 14. No payments under $1.00 are

OFFICE USE ONLY

required. NOTE: There will be a $30.00 charge for checks returned from

the bank for any reason. For a receipt, enclose a stamped, self ad-

dressed envelope.

COMPUTATION OF CREDIT FOR TAXES PAID TO OTHER STATES*

Income subject to tax in other state (attach PA Schedule G & tax return)

$_____________ AA

Tax Paid to other state less refund (attach copy of tax return)

$_____________ BB

PA Income Tax Credit (PA tax rate X AA)

$_____________ CC

Excess tax paid other state (BB – CC) (if negative enter 0)

$_____________ DD

Maximum Allowable Credit (local tax rate X AA)

$_____________ EE

Allowable Tax Credit (lesser of DD or EE) enter on line 9c on Final Return

$_____________

*NOTE: CREDIT NOT APPLICABLE FROM TAXES PAID TO NEW JERSEY

Instructions For Final Return Form - Pennsylvania Department Of Revenue

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