Instructions And Definitions For Filing Final Return For Local Earned Income Tax (Page 2 of 2) in pdf

INSTRUCTIONS AND DEFINITIONS FOR FILING FINAL RETURN FOR LOCAL EARNED INCOME TAX

FOR FILING ASSISTANCE PLEASE CALL 610-372-8439

** Special Rate Instructions for Union Township residents:

Berks EIT Bureau is the local eamed income tax collector for the Daniel Boone Area School District's portion only. This results

in all Union Township residents being required to file two (2) local tax returns. One with Berks EIT, for only the school district's

one half percent share of the tax; the other, for the municipal share must be filed with their collector, Berkheimer Assoc. When

filing for the school district's share only, all instructions remain the same except when calculating tax and tax withheld. These

are calculated at the one half percent rate. Form W2(s) that indicate 1 % withheld, will be given credit for only half, not the full

1%.

FILING INSTRUCTIONS:

Line 1 -

Prorated retums, Philadelphia Tax Credit, and Out-of-State Credit refer to worksheet on reverse side of tax return.

Earned Income from W-2(s) (both spouses): All eamed income (gross eamings) is taxable and is defined as income received

for personal services rendered, irrespective of

where such services are performed. Refer

to Pennsylvania State Tax

instructions for line 1 of Form PA-40. An exception is Clergy housing allowance which is not taxable for local earned income

tax purposes.

Line 2-

Allowable Unreimbursed Employee Business Expenses: Expenses as defined by the Commonwealth of Pennsylvania. All

supporting documents, as required by PA UE-1 or UE-2 (example Federal Form 2106 for mileage) must accompany the original

filing.

Note: Should the taxpayer omit the required expense deduction forms, or if the expense deduction forms are not fully

completed, the expense deduction shall be systematically disallowed and denied without notification to the

taxpayer.

Line 3 - Net Losses from non-passive income only. Do not include losses from S-Corps; rents; and/or other investments.

Losses can not be used to offset net profits. Losses may only be applied to the individual's wages. One person's loss can not

offset his/her spouse's wage. Refer to Aronson v City of Pittsburgh,485A2nd890; Pa. CMWL TH. Court, 1985. Guaranteed

payments to partners are taxable as earned income.

Line 5 - Other Earned Income: Tips Received; Director's Fees; Taxes Assumed by Employer; Stock Options (when not

declared on W-2 as wage); Incentive Payments; Fellowship (When Compensation for Services); Compensation in the Form of

Property (taxed on its Fair Market Value); Executor's Fees; Jury Duty Pay; Stipends; and various other employer paid fringe

benefits (exclude premiums on excess Group Life Insurance). Enclose applicable 1099-MISC.

Line 6 - Net Profits: Non-passive income only. Each business, profession, partnership, etc. must be reported separately. Guaranteed

payments to partners are taxable as earned income.

Line 9 - Do not include tax withheld by the City of Pittsburgh. You must pay our Bureau the tax due and apply to the City of Pittsburgh

for a refund of the tax withheld in error.

Credit will be given up to 1 % of wages taxed by

a distressed municipality.

Line 10 - Taxes Paid to Other States or Philadelphia: See reverse of

tax form for

worksheet and instructions.

Line 13- Incomplete or inaccurate requests for refunds shall be adjusted without notification to the taxpayer.

Line 14- Interest and Penalty: If you file after April 15, 2009 and owe tax, add interest of 6% per annum and a penalty of one half of 1 %

per month of Line 12. Failure to comply by the due date may result in additional cost collection fees. A copy ofthe Cost

Collection Fees Schedule is available upon request.

Line 15- Balance Due: Line 12 plus Line 14. Enclose check or money order, payable to "Berks E.I.T. Bureau", with this return if

you owe

$1.00 and over.

CREDIT CARD PAYMENTS: You may elect to pay your tax balance due by credit card (VISA, MasterCard, American Express and

Discover) through Offcial Payments Corp. It is a simple, safe, and convenient payment option. There is a fee charged by Official

Payments Corp. for utilizing this method of paying any tax due. Payments must be made via a link through our website

ww.berkseit.comorbyphone1-800-272-9829.lfyouselectthephonepaymentprocedure.theJurisdictionCodeis4845.At

several points in the transaction process, you are informed of the amount that Offcial Payments Corp. is charging. When you use

this service, two line items wil appear on your credit card bilL. One is for the amount paid to the Berks EIT Bureau for tax due and

the other is for the fee charged by Official Payments Corp. If you have any questions about this method of payment, please contact

our office. NOTICE: YOU ARE STILL REQUIRED TO FILE YOUR LOCAL TAX RETURN WITH APPROPRIATE SUPPORTING

DOCUMENTATION. Please check the payment by credit card box on the tax form and return envelope.

TAXPAYER NOTICE: You are entitled to receive a wrtten explanation of your rights with regard to the audit, enforcement, refund, and collection of local

taxes collected by the Berks E.I.T. Bureau by callng the Bureau at 610-372-8439 during the hours of 8:00 A.M. to 5:00 P.M., Monday through Friday.

Instructions And Definitions For Filing Final Return For Local Earned Income Tax Page 2

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