Tag Archives: Pennsylvania

TaxHow – Pennsylvania Tax Filing, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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Pennsylvania Tax Filing

Pennsylvania income tax forms

Filing Your Taxes in Pennsylvania

Filing taxes can be frustrating. Here, you can find information that will help make filing your taxes easier and faster. Find out what your residency status is, which forms you need to file and on what income.

One thing all people paying taxes in Pennsylvania need to keep in mind that Pennsylvania charges local and school taxes in addition to the 3.07% state income tax. If you have a low income, you may qualify for a Tax Forgiveness Credit.

Income tax returns must be filed by April 18th.

Online Tax Software: Taxes Made Easy

If you want to make doing your taxes online easy, you might want to consider using online tax software. e-File.com and TaxAct are the most well-known software providers out there for doing your taxes online, but they each have their pros and cons: Compare them here!

  • Fast Refund
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Pennsylvania Tax Forms

  • PA Schedule PA-40X – Pennsylvania Schedule PA-40X – Amended
  • PA Tax Booklet – Pennsylvania Personal Income Tax Return Booklet
  • PA Form PA-40 – Pennsylvania Income Tax Return
  • Pennsylvania Schedule G – Pennsylvania Credit for Tax Paid To Other States
  • Pennsylvania Form Rev-276 – Pennsylvania Application for Extension to File
  • PA Schedule A/B – Pennsylvania Interest and Dividend Income, Income from Estates and Trusts
  • Pennsylvania Schedule C (Form 1040) – Profit or Loss From Business
  • Pennsylvania Form PA-8453 – Pennsylvania Individual Income Tax Declaration for Electronic Filing
  • Schedule D (Form 1040) – Capital Gains and Losses
What is My Residency Status?

There are four groups of people who need to file some sort of tax form in Pennsylvania. Pennsylvania residents, part-year Pennsylvania residents, people who live in Pennsylvania but work in another state, people who live in another state and work in Pennsylvania and people who sold property in Pennsylvania that tax year.

Pennsylvania Residents

Not all Pennsylvania residents are required to file an income tax return using Form PA-40. To find out if you have to file a Pennsylvania resident tax return and all of the information you need to do fill out Form PA-40 correctly, you can download the PA-40 Instructions Booklet above.

Part-Year Residents

Pennsylvania taxes any and all income earned in or out of state if you were a resident as well as on all income earned in Pennsylvania regardless of residency status. Part-year Pennsylvania residents must file a state income tax return using Form PA-40 for any income earned while they were residents of Pennsylvania. You will also need to file any additional forms for the time in which you were not a resident. Refer to page 15 of the Pennsylvania Personal Income Tax Guide, which you can download above, for help on filing a part-year resident return. There is a whole section dedicated to nonresident tax returns.

Pennsylvania Residents Who Work Out of State

Pennsylvania residents working in any state are still required to file an income tax return with Pennsylvania and the state in which they work. If you want to make sure you don’t get taxed twice (dual taxation), you will need to fill out Schedule G and file it with your Pennsylvania resident state income tax return (Form PA-40) and you will be credited for any taxes paid to other states.

Work in Pennsylvania, Live Out of State

If you do not live in Pennsylvania, but you work there, you will be required to file a tax return for any income earned in Pennsylvania. Pennsylvania considers wages and salaries from employment as taxable income. To file taxes on income earned in Pennsylvania, fill out Schedule C. For more information on how to file as a nonresident and how to fill out a Schedule C, see the Pennsylvania Personal Income Tax Guide which you can download above.

Any nonresidents who sold property in Pennsylvania are required to file taxes on any income they earned from that sale. To file a return on income from the sale of property, fill out a Schedule D. For more information see the Pennsylvania Personal Income Tax Guide which you can download above.


Pennsylvania Income Tax Rates for 2017, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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Tax-Rates.org The 2017 Tax Resource

Contents

Tax Information Sheet Pennsylvania income tax forms Launch Pennsylvania

Income Tax Calculator

Note: Pennsylvania’s income tax has a single flat tax rate for all income.

Pennsylvania collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Pennsylvania’s state income tax does not provide couples filing jointly with expanded income tax brackets.

Pennsylvania’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Pennsylvania’s %. You can learn more about how the Pennsylvania income tax compares to other states’ income taxes by visiting our map of income taxes by state.

Like 14 other states, Pennsylvania allows cities and other localities to collect a local income tax in addition to the Pennsylvania Income Tax. The average income tax rate for counties and large municipalities, weighted by total personal income within each jurisdiction is 1.25%.

There are -945 days left until Tax Day, on April 15th 2015. The IRS will start accepting eFiled tax returns in January 2015 – you can start your online tax return today for free with TurboTax Pennsylvania income tax forms.

Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your Pennsylvania income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Pennsylvania tax returns. For details on specific deductions available in Pennsylvania, see the list of Pennsylvania income tax deductions.

4.1 – Pennsylvania Standard Deduction

4.2 – Pennsylvania Personal Exemptions

4.3 – Pennsylvania Dependent Deduction

4.4 – Pennsylvania Itemized Deductions

Tax-Rates.org provides easy access to five of the most commonly used Pennsylvania income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Pennsylvania tax forms library or the ‘s tax forms page.

Pennsylvania income tax forms

Pennsylvania income tax forms

Pennsylvania income tax forms

Pennsylvania income tax forms

Pennsylvania income tax forms

Pennsylvania income tax forms

Pennsylvania Department of Revenue Bureau of Individual Taxes PO Box 280504 Harrisburg, PA 17128-0504

Pennsylvania Department of Revenue No Payment/No Refund 2 Revenue Place Harrisburg, PA 17129-0002

Pennsylvania Department of Revenue Payment Enclosed 1 Revenue Place Harrisburg, PA 17129-0001

Pennsylvania Department of Revenue Refund/Credit Requested 3 Revenua Place Harrisburg, PA 17129-0003

Pennsylvania income tax forms

You can save time and money by electronically filing your Pennsylvania income tax directly with the . Benefits of e-Filing your Pennsylvania tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.

To e-file your Pennsylvania and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.

The two most popular tax software packages are H ?>

State taxes: Pennsylvania, pennsylvania income tax.#Pennsylvania #income #tax

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State taxes: Pennsylvania

The Pennsylvania state income tax rate is currently 3.07%. The local income tax ranges from 1% to nearly 4%. In some municipalities, the Local Earned Income Tax is capped at 2%. More on Pennsylvania taxes can be found in the tabbed pages below.

Personal income tax

Pennsylvania has a flat tax rate of 3.07% on individual income, with no personal exemptions.

Pennsylvania taxes 8 classes of income: (1) compensation; (2) interest; (3) dividends; (4) net profits from the operation of a business, profession or farm; (5) net gains or income from the dispositions of property; (6) net gains or income from rents, royalties, patents and copyrights; (7) income derived through estates or trusts; and (8) gambling and lottery winnings other than Pennsylvania Lottery winnings. A loss in 1 class of income may not offset against income in another class, nor may gains or losses be carried backward or forward from year to year.

Pennsylvanians who live on a modest income may qualify for the state’s tax forgiveness credit.

Pennsylvania tax returns are due April 15, or the next business day if that date falls on a weekend or holiday.

Sales taxes

Pennsylvania imposes a 6% state sales tax on taxable goods and services.

A local sales tax of 1% is collected on sales of taxable goods and services initiated from a location in Allegheny County.

A local sales tax of 2% is collected on sales and services, except hotel rooms, by vendors located in Philadelphia County.

Personal and real property taxes

Pennsylvania does not levy or collect taxes on real estate or personal property. Those taxes are reserved for the local governments: counties, municipalities and school districts. Usually, all 3 districts levy real estate or property taxes, so you will need to know what county, school district and municipality you live in.

Municipalities (cities, townships and boroughs) are permitted to levy real estate property taxes that cannot exceed 30 mills on the assessed value of the property without special permission of the courts.

The Taxpayer Relief Act provides school districts the opportunity to offer lower property taxes to homeowners by implementing an additional earned income and net profits tax or a personal income tax.

The state’s Property Tax/Rent Rebate program is available to qualified seniors and permanently disabled citizens. It is funded by the Pennsylvania Lottery and administered by the Pennsylvania Department of Revenue. The maximum standard rebate for the amount paid in property taxes or rent in the previous year is $650, but supplemental rebates for qualifying homeowners can boost rebates to $975.

Inheritance and estate taxes

Pennsylvania has an inheritance tax. The tax rate varies depending on the relationship of the heir to the decedent, but it could be as high as 15%.

Pennsylvania had an estate tax based on a decedent’s total gross estate and limited to the credit for state death taxes allowed on the federal estate tax return. However, since the federal credit for state estate tax payments has been phased out, the Keystone State’s estate tax is not imposed.

Other Pennsylvania tax facts

Taxpayers can go online to track the status of their refunds.

The state as well as Pennsylvania counties maintain online information about foreclosures and tax liens in their jurisdictions.

For more information, visit the Pennsylvania Department of Revenue’s website. Residents may also contact the automated FACT and Information Line at (888) 728-2937.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.


Pennsylvania Individual Income Tax, pennsylvania income tax.#Pennsylvania #income #tax

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Pennsylvania Individual Income Tax

Pennsylvania income tax

Individuals in Pennsylvania pay a flat tax of 3.07 percent. This means that in Pennsylvania everyone pays 3.07 percent, no matter how much income they make. However, if your income is low enough, the state will forgive your tax debt, bringing your tax bill to zero.

Pennsylvania does not allow for a standard deduction or a deduction for personal exemptions (dependents). Therefore, the allowed deductions, tax credits, and exclusions from income become all the more important.

What Income Is Taxable?

Pennsylvania assesses tax on the eight classes of income:

  1. Compensation
  2. Interest
  3. Dividends
  4. Net profits from a business, profession, or farm
  5. Net gains from the dispositions of property
  6. Net gains from rents, royalties, patents, and copyrights
  7. Income from estates or trusts
  8. Gambling and lottery winnings other than Pennsylvania Lottery winnings

What Income Is Exempt?

Common income items that are exempt from Pennsylvania income tax include:

  • Capital gains from the sale of a principal residence for those who satisfy ownership and use requirements
  • Personal use of employer-owned property
  • Child support
  • Alimony
  • Social security benefits, public and private pensions, and IRA distributions
  • Worker’s compensation, unemployment benefits, and public assistance
  • Sick pay
  • Inheritances and gifts

For full details on all exempt income items see the instructions to Form PA-40.

What Can I Deduct?

Pennsylvania does not allow many of the deductions that are allowed on your Federal tax return, limiting your deductions to the following three:

  • Employment related expenses that were not reimbursed by your employer are allowed to be deducted from your gross compensation. Pennsylvania requires the costs to be ordinary, necessary, reasonable, and directly related to your occupation. You are allowed to deduct ALL of these costs as Pennsylvania does not impose the Federal limits on this deduction.
    • Medical savings and health savings account contributions are deductible to the extent they are deductible for Federal (IRS) tax purposes. If you received a deduction for these contributions on your Federal return, your Pennsylvania deduction would be the same as your Federal deduction. Your Federal deduction can be found on Line 25 of your Federal Form 1040.
    • 529 college savings account contributions made during the tax year can be deducted up to the limit of $13,000 per beneficiary. This deduction applies to both Pennsylvania 529 plans and out-of-state 529 plans.

    What Tax Credits Are Available?

    Tax credits reduce your tax debt directly, similar to a payment. Pennsylvania offers these credits to individuals:

    • Resident Credit is a credit for gross or net income taxes paid to other states or foreign countries by Pennsylvania residents
    • Tax Forgiveness Credit is a credit extended to taxpayers who are single, married, and/or have dependents and whose income from all sources (including tax exempt items like alimony, child support, social security, etc.) does not exceed certain income limits. Depending on your number of dependents and income you can receive a credit of anywhere from 10 percent to 100 percent your tax liability.

    Filing Your Return

    If you are a Pennsylvania resident, nonresident, or part-year resident, you must file a Pennsylvania tax return if you received over $33 in gross income or you sustained a loss from any transaction as an individual, sole proprietor, partner in a partnership, or Pennsylvania S-corporation shareholder. Forms are available on the Pennsylvania Department of Revenue s Web site. You can also call 1-888-PATAXES to order forms and have them mailed or faxed to you.

    You can choose to mail your return, file over the telephone (Tele-file), fill out and submit your return online, or e-file using tax software such as TurboTax. Tax returns and payment must be postmarked on or before April 15th.


    Contact My Local Office in Pennsylvania, Internal Revenue Service, pennsylvania income tax forms.#Pennsylvania #income #tax

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    Contact My Local Office in Pennsylvania

    Face-to-face Tax Help

    Nearly every tax issue can now be resolved online or by phone from the convenience of your home or office. Through IRS.gov you can:

    All Taxpayer Assistance Centers (TACs) now operate by appointment. When calling to schedule an appointment, customer service representatives are available Monday through Friday, 7 a.m. to 7 p.m.

    Virtual Assistance provides a safe, secure environment for taxpayers to get service in a face-to-face setting without visiting a traditional TAC. Virtual assistance involves taxpayers interacting with live assistors located in a different geographic location via an IRS computer. This method of face-to-face service is now available at selected IRS partner locations.

    Caution: Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

    Multilingual assistance is available in every office. Hours of operation are subject to change.

    Before visiting your local office click on “Services Provided” in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site.

    Altoona, PA 16601

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    **This office is closed Fridays 9/8-11/24**

    Monday Friday 8:30 a.m.- 4 p.m.

    Bethlehem, PA 18018

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    Cranberry TWP, PA 16066

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    **This office is closed 11/20 -11/24 12/22 -12/29**

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    Harrisburg, PA 17101

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12 noon – 1 p.m.)

    Horsham, PA 19044

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    Johnstown, PA 15901

    Monday-Friday – 8:30 a.m.-4:30 p.m.

    (Closed for lunch 12:30 p.m. – 1:30 p.m.)

    King of Prussia, PA 19406

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m. – 1:30 p.m.)

    Lancaster, PA 17601

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12 noon – 1 p.m.)

    **This office closes at noon 11/14**

    **This office is closed 11/17, 11/22-11/24 12/26-12/29**

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 1 p.m.-2 p.m.)

    Monroeville, PA 15146

    Monday-Friday – 8:30 a.m. – 4:30 p.m..

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    **This office closes at noon 12/8**

    Philadelphia, PA 19106

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    Pittsburgh, PA 15222

    Monday-Friday – 8:30 a.m.-4:30 p.m.

    Reading, PA 19601

    Monday-Friday – 8:30 a.m.-4:30 p.m.

    (Closed for lunch 1 p.m. – 2 p.m.)

    Scranton, PA 18503

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    **(Closed for lunch 12 noon – 1 p.m. 7/26-12/31)**

    Washington, PA 15301

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m.-1:30 p.m.)

    Wilkes-Barre, PA 18702

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    (Closed for lunch 12:30 p.m. – 1:30 p.m.)

    Monday-Friday – 8:30 a.m.- 4:30 p.m.

    For information on where to file your tax return please see Where to File Addresses.

    IRS and organizations all over the country are partnering to assist individual and families. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

    For more information about the programs for individuals and families and how your organization can be a part of this partnership read more at Become an IRS Partner. Organizations interested in operating a free tax preparation site through the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs may consider applying for a VITA or TCE Grant. Anyone interested in volunteering to prepare free tax returns can read how to become an IRS Tax Volunteer, or if you need to find a volunteer site to have your tax return prepared absolutely free, go to Free Tax Return Preparation for you by volunteers.

    For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

    Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.


    Overview of Pennsylvania Inheritance Tax Laws, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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    Overview of Pennsylvania Inheritance Tax Laws

    Pennsylvania income tax forms

    Pennsylvania income tax forms

    NOTE: State laws change frequently and the following information may not reflect recent changes in the laws. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

    Pennsylvania does not impose a separate state estate tax due to changes in the federal estate tax laws that phased out the state pick up tax effective for deaths occurring on or after January 1, 2005.

    However, Pennsylvania is among one of six states that collect a separate state inheritance tax on certain property owned by a Pennsylvania resident and real estate and tangible personal property located in Pennsylvania that is owned by a nonresident.

    Estate Taxes vs. Inheritance Taxes – What s the Difference?

    While it may just seem to be semantics, there is a real difference between an estate tax and an inheritance tax:

    • An estate tax is charged against the entire estate regardless of who the beneficiaries of the estate may be.
    • An inheritance tax is only charged against the shares of certain beneficiaries of an estate.

    Which Beneficiaries Are Subject to the Pennsylvania Inheritance Tax?

    Each beneficiary of a Pennsylvania estate receives, or does not receive, an exemption from the Pennsylvania inheritance tax based on the beneficiary s degree of relationship to the decedent. Here are the categories of beneficiaries and their applicable exemptions, or lack thereof, that are available under Pennsylvania law:

    • Surviving spouses – For deaths occurring on or after January 1, 1995, transfers to a surviving spouse are entirely exempt from the Pennsylvania inheritance tax.
    • Minor children – For deaths occurring on or after July 1, 2000, transfers from the estate of a child age 21 or less to the child s natural parent, stepparent, or adoptive parent are entirely exempt from the Pennsylvania inheritance tax.
    • Charitable beneficiaries – Transfers to exempt charitable organizations, exempt institutions, and government entities are entirely exempt from the Pennsylvania inheritance tax.
    • Class A – This class includes grandparents, parents, descendants (including natural descendants, adopted descendants, and step-descendants), and an un-remarried spouse of a child. This class receives a $3,500 family exemption from the Pennsylvania inheritance tax.
    • Class A1 – This class includes brothers, half-brothers, sisters, half-sisters, and persons having at least one parent in common with the decedent, either by blood or by adoption. Class A1 beneficiaries do not receive any exemption from the Pennsylvania inheritance tax.
    • Class B – This class includes all other beneficiaries. Class B beneficiaries do not receive any exemption from the Pennsylvania inheritance tax.

    Family Farms Are Exempt From Pennsylvania Inheritance Tax

    For deaths occurring on or after June 30, 2012, working family farms and some related agricultural commodities are exempt from the Pennsylvania inheritance tax. Here is a summary of the new rules:

    1. The transfer of the farm land must be between members of the same family.
    2. The farm land must continue to be devoted to the business of agriculture for at least seven years beyond the transferor s date of death.
    1. The farm land must produce a yearly gross income of at least $2,000.
    2. If any tract of farm land that was initially exempt from the Pennsylvania inheritance tax is no longer devoted to the business of agriculture within seven years beyond the transferor s date of death, then the tax will be recaptured in the amount that would have been paid plus interest.
    3. Aside from land used for the business of agriculture, the transfer of an agricultural commodity, agricultural conservation easement, agricultural reserve, agricultural use property or a forest reserve to lineal descendants or siblings is exempt from the Pennsylvania inheritance tax.

    Is Life Insurance Included in a Pennsylvania Estate?

    Payments received from a life insurance contract are exempt from the Pennsylvania inheritance tax whether they are paid to the estate or some other beneficiary.

    What Expenses Can Be Deducted From the Value of a Pennsylvania Estate?

    Certain expenses can be deducted from the value of a Pennsylvania estate, including:

    • Funeral expenses
    • Attorney s fees
    • Personal representative and trustee fees
    • Lawful debts owed by the decedent, including mortgages
    • Certain unpaid taxes

    What Are the Pennsylvania Inheritance Tax Rates?

    The Pennsylvania inheritance tax rates are as follows:

    • Class A beneficiaries, lineal tax rate: Class A beneficiaries are subject to a 4.5% inheritance tax.
    • Class A1 beneficiaries, sibling tax rate: Class A1 beneficiaries are subject to a 12% inheritance tax rate.
    • Class B beneficiaries, collateral tax rate: Class B beneficiaries are subject to a 15% inheritance tax rate.

    What Pennsylvania Inheritance Tax Forms Must Be Filed and When Are They Due?

    The estates of Pennsylvania residents need to file a Pennsylvania Inheritance Tax Return, Form REV-1500, on or before nine months after the decedent s date of death. The inheritance tax must also be paid within the same time frame, otherwise, interest will begin to accrue.

    The estates of nonresidents who own real estate and/or tangible personal property located in Pennsylvania need to file an Inheritance Tax Return Nonresident Decedent, Form REV-1737A, on or before nine months after the decedent s date of death. The inheritance tax must also be paid within the same time frame, otherwise, interest will begin to accrue.

    If the Pennsylvania inheritance tax is paid within three months of the date of death, then a 5% discount is applied.

    An extension of time to file an inheritance tax return may be requested before the due date, but the granting of an extension will not relieve the estate from payment of interest which will accrue beginning nine months and one day from the decedent’s death on any tax ultimately found to be due and not timely paid. Mail the request for an extension to PA Department of Revenue, Bureau of Individual Taxes, Inheritance Tax Division-Ext, P.O. Box 280601, Harrisburg, PA 17128-0601.

    Where Should Pennsylvania Inheritance Tax Forms Be Filed?

    File the completed return for a resident in duplicate with the Register of Wills of the county in which the decedent was a resident at the time of death.

    File the completed return for a nonresident with the PA Department of Revenue, Bureau of Individual Taxes, Inheritance Tax Division – Nonresident, P.O. Box 280601, Harrisburg, PA 17128-0601.

    Where Can I Find Additional Information About Pennsylvania Inheritance Taxes?

    For more information about Pennsylvania inheritance taxes, refer to the Pennsylvania Department of Revenue website.

    Pennsylvania inheritance forms and instructions can be found on the Department of Revenue s website by following this link: Pennsylvania Inheritance Tax Forms and Instructions.


    Guide to Pennsylvania Personal Income Tax, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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    Pennsylvania Personal Income Tax

    A personal income tax is levied in Pennsylvania against the taxable income of resident and nonresident individuals, businesses, and estates and trusts.

    Pennsylvania Income Tax Rate

    Pennsylvania has a flat tax rate of 3.07 percent on individual income tax, with no standard deductions or personal exemptions. If your income is low enough, however, your income tax bill may be reduced to zero.

    A credit is allowed for income taxes paid to other states by residents of Pennsylvania.

    Pennsylvania s top personal income tax rate ranks 40th among states levying an individual income tax. However, many Pennsylvania taxpayers also pay a local tax on earned income which increases that tax burden relative to other states which do not collect local income taxes.

    Income That is Subject to Taxes

    Taxes in Pennsylvania are collected on eight classes of income:

    1. wages
    2. interest
    3. dividends
    4. net profits from business, profession or farm
    5. net gain from sale or disposition of property
    6. net income from rents, royalties, patents and copyrights
    7. gambling and lottery winnings (other than Pennsylvania state lottery winnings)
    8. income from estates or trusts

    Income That is Exempt from Taxes

    Items that are commonly exempt from Pennsylvania state income tax include:

    • Social Security benefits, public and private pensions, and IRA distributions
    • Child support
    • Alimony
    • Inheritance and gifts
    • Workers compensation, unemployment benefits, and public assistance
    • Capital gains from the sale of a principal residence (as long as it meets ownership and use requirements)

    Tax Forgiveness

    Pennsylvania does offer special tax forgiveness provisions for certain low-income taxpayers whose income does not exceed $6,500 (filing as a single) or $13,500 (married filing separately or jointly, plus $9,500 for each dependent).

    For a married couple with 2 children, the income allowance for 100% tax forgiveness would be $32,000. For a single parent with 2 children, the income allowance for 100% tax forgiveness is $25,500.

    Reciprocal States

    Wages earned from work performed in Pennsylvania by residents of Indiana, Maryland, New Jersey, Ohio, Virginia or West Virginia are not subject to Pennsylvania State Income Tax under a reciprocal personal income tax agreement. If PA taxes were improperly withheld from residents of these states, a tax return should be filed to obtain a refund. Taxes are required to be paid in the reciprocal state in which the wages were earned.

    Local Income Taxes

    In addition to state income tax, Pennsylvania localities are permitted to assess a wage tax on earned income only (known as the Earned Income Tax). Generally, the Earned Income Tax, or wage tax, is split between the municipality and the local school district. Most PA municipalities have a 1% cap for wage taxes, except in Home Rule municipalities (namely Philadelphia, Pittsburgh, and Scranton) which are not subject to a minimum tax rate.

    Pennsylvania Income Taxes – How They Compare

    According to the Tax Foundation, Pennsylvania s combined state/local income tax burden is estimated at 10.1% of income.

    Above the national average of 9.8%, this ranks the state 10th highest nationally. Unfortunately, personal property taxes in the state only further increase the tax burden.

    Filing Your Personal Income Tax Return

    You must file a Pennsylvania income tax return (this applies to residents, part-year residents, and non-residents) if your Pennsylvania taxable income exceeds $35 during the year or if you incurred a loss from any transaction as an individual, sole proprietor, partner or shareholder of an S corporation.

    Completed tax forms and payment must be postmarked on or before April 15. Personal income tax forms are available in many area libraries, government offices, post offices and from the Pennsylvania Department of Revenue s Web site.


    Pennsylvania Individual Income Tax, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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    Pennsylvania Individual Income Tax

    Pennsylvania income tax forms

    Pennsylvania income tax forms

    Individuals in Pennsylvania pay a flat tax of 3.07 percent. This means that in Pennsylvania everyone pays 3.07 percent, no matter how much income they make. However, if your income is low enough, the state will forgive your tax debt, bringing your tax bill to zero.

    Pennsylvania does not allow for a standard deduction or a deduction for personal exemptions (dependents). Therefore, the allowed deductions, tax credits, and exclusions from income become all the more important.

    What Income Is Taxable?

    Pennsylvania assesses tax on the eight classes of income:

    1. Compensation
    2. Interest
    3. Dividends
    4. Net profits from a business, profession, or farm
    5. Net gains from the dispositions of property
    6. Net gains from rents, royalties, patents, and copyrights
    7. Income from estates or trusts
    8. Gambling and lottery winnings other than Pennsylvania Lottery winnings

    What Income Is Exempt?

    Common income items that are exempt from Pennsylvania income tax include:

    • Capital gains from the sale of a principal residence for those who satisfy ownership and use requirements
    • Personal use of employer-owned property
    • Child support
    • Alimony
    • Social security benefits, public and private pensions, and IRA distributions
    • Worker’s compensation, unemployment benefits, and public assistance
    • Sick pay
    • Inheritances and gifts

    For full details on all exempt income items see the instructions to Form PA-40.

    What Can I Deduct?

    Pennsylvania does not allow many of the deductions that are allowed on your Federal tax return, limiting your deductions to the following three:

    • Employment related expenses that were not reimbursed by your employer are allowed to be deducted from your gross compensation. Pennsylvania requires the costs to be ordinary, necessary, reasonable, and directly related to your occupation. You are allowed to deduct ALL of these costs as Pennsylvania does not impose the Federal limits on this deduction.
      • Medical savings and health savings account contributions are deductible to the extent they are deductible for Federal (IRS) tax purposes. If you received a deduction for these contributions on your Federal return, your Pennsylvania deduction would be the same as your Federal deduction. Your Federal deduction can be found on Line 25 of your Federal Form 1040.
      • 529 college savings account contributions made during the tax year can be deducted up to the limit of $13,000 per beneficiary. This deduction applies to both Pennsylvania 529 plans and out-of-state 529 plans.

      What Tax Credits Are Available?

      Tax credits reduce your tax debt directly, similar to a payment. Pennsylvania offers these credits to individuals:

      • Resident Credit is a credit for gross or net income taxes paid to other states or foreign countries by Pennsylvania residents
      • Tax Forgiveness Credit is a credit extended to taxpayers who are single, married, and/or have dependents and whose income from all sources (including tax exempt items like alimony, child support, social security, etc.) does not exceed certain income limits. Depending on your number of dependents and income you can receive a credit of anywhere from 10 percent to 100 percent your tax liability.

      Filing Your Return

      If you are a Pennsylvania resident, nonresident, or part-year resident, you must file a Pennsylvania tax return if you received over $33 in gross income or you sustained a loss from any transaction as an individual, sole proprietor, partner in a partnership, or Pennsylvania S-corporation shareholder. Forms are available on the Pennsylvania Department of Revenue s Web site. You can also call 1-888-PATAXES to order forms and have them mailed or faxed to you.

      You can choose to mail your return, file over the telephone (Tele-file), fill out and submit your return online, or e-file using tax software such as TurboTax. Tax returns and payment must be postmarked on or before April 15th.


      Pennsylvania Income Tax Brackets 2017, pennsylvania income tax forms.#Pennsylvania #income #tax #forms

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      Pennsylvania income tax forms 2016 Pennsylvania Income Tax Brackets

      Pennsylvania’s income tax rates were last changed thirteen years prior to 2015 for tax year 2002, and the tax brackets have not been changed since at least 2001.

      Pennsylvania has a flat income tax rate which applies to both single and joint filers. The Federal Income Tax, in contrast to the Pennsylvania income tax, has multiple tax brackets with varied bracket width for single or joint filers.

      How do Pennsylvania tax brackets work?

      Technically, you don’t have just one “tax bracket” – you pay all of the Pennsylvania marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Pennsylvania tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.

      You can think of the bracketed income tax as a flat amount for all of the money you earned up to your highest tax bracket, plus a marginal percentage of any amount you earned over that. The chart below breaks down the Pennsylvania tax brackets using this model:

      Pennsylvania income tax forms Pennsylvania Income Tax Calculator

      Pennsylvania Income Tax Estimator

      You can use the income tax estimator to the left to calculate your approximate Pennsylvania and Federal income tax based on the most recent tax brackets.

      Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.

      For a more detailed estimate that takes these factors into account, click “View Detailed Estimate” (this will will redirect to an external website).

      Pennsylvania Tax Deductions

      When calculating your Pennsylvania income tax, keep in mind that the Pennsylvania state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions.

      Qualifying deductions might include an itemized deduction, the Pennsylvania standard deduction, exemptions for dependants, business expenses, etc.

      Remember that Pennsylvania may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Pennsylvania income tax return.

      Pennsylvania income tax forms

      Download .CSV file of PA income tax brackets

      Compatible with Excel or database software

      Pennsylvania income tax forms

      Download or print Pennsylvania income tax forms

      PA income tax forms are available as PDFs

      Pennsylvania Standard Deductions & Personal Exemption Amounts

      In addition to marginal tax brackets, one of the major features of the Pennsylvania income tax is deductions. The three most common deductions encountered by taxpayers are the Pennsylvania Standard Deduction, the Pennsylvania Personal Exemption, and the Pennsylvania Dependent Deduction. The current values of these deductions for tax year 2015 are as follows:

      The standard deduction, which Pennsylvania does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.

      The Personal Exemption, which is not supported by the Pennsylvania income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.

      The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Pennsylvania s and may have different rules.

      Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.

      Pennsylvania income tax forms Sources & Citations

      Disclaimer: While we do our best to keep this list of Pennsylvania income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!

      Please note: Our Pennsylvania tax brackets are currently from tax year 2015 (filed in April 2016). Many states adjust their tax brackets yearly, and we will update the $stateName tax brackets for 2016 / 2017 as soon as they become available.

      Tax Data Sources:

      1. The Pennsylvania tax brackets on this page were last updated from the Pennsylvania Department of Revenue in 2015. Please contact us if any of our Pennsylvania tax data is incorrect or out of date.
      2. Pennsylvania tax return forms are available on the Pennsylvania tax forms page or the Pennsylvania Department of Revenue.
      3. Before the official 2017 Pennsylvania income tax brackets are released, the brackets used on this page are an estimate based on the previous year’s brackets. These numbers are subject to change if new Pennsylvania tax tables are released.
      4. The Pennsylvania income tax estimator tool is provided by Tax-Rates.org Pennsylvania income tax forms.

      While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present.

      This site is a free public service not affiliated with the IRS or any governmental organization.

      Pennsylvania income tax forms


      Pennsylvania Personal Income Tax Laws, pennsylvania income tax.#Pennsylvania #income #tax

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      Pennsylvania Personal Income Tax Laws

      Most states, including Pennsylvania, levy a personal income tax on residents in addition to federal income taxes. Pennsylvania personal income tax law requires individuals, estates, and trusts within the state to pay 3.07 percent on all taxable net income.

      The basics of Pennsylvania personal income tax law are summarized in the following table, while additional information on the subject follows. See FindLaw’s extensive Tax Law section for more information.

      Who is Required to File Income Tax in Pennsylvania?

      Individuals living in Pennsylvania must pay Pennsylvania income taxes on all of their income, regardless of whether or not the income was earned in Pennsylvania. This may also include income that was earned in a state that does not have personal income taxes. Whether you qualify as a Pennsylvania resident depends on a number of factors. If you are concerned about your residency, it would be best to speak with a qualified tax attorney to get a definitive answer. Failing to pay taxes can come with hefty fines.

      Pennsylvania corporations, and foreign corporations, must pay income tax in Pennsylvania for the privilege of conducting business in that state. Common reasons for paying corporate income tax in Pennsylvania are carrying on business in Pennsylvania, having capital or property employed or used in Pennsylvania, or merely owning property in Pennsylvania. A Pennsylvania tax attorney should be able to help you with the details on what a corporation must pay taxes on in the state.

      Nonresidents must pay Pennsylvania income tax on income they earn within the state. Just because someone makes some money in the state does not mean that they have to pay Pennsylvania income tax on their income earned outside the state.

      Sometimes, after a person passes away, their property will continue to earn money before it is passed to the heirs. This income, and any income earned in the year the decedent passed away, will have to be accounted for in a Pennsylvania tax return. This tax return is generally done by the estate’s executor, who is normally named in the decedent’s will.

      A trust is a relationship whereby a grantor gives property to a trustee to administer for the benefit of a beneficiary. Part of the trustee’s duties includes paying taxes on income derived from the property in their care. The beneficiary may also have to pay taxes on any income or distributions from the trust.

      The current Pennsylvania income tax rate is 3.07%, and this changes year to year.

      Partnerships and Associations

      Partnerships and associations do not have to pay taxes in Pennsylvania, as their members will pay taxes on income received from the partnership or association in their individual tax returns.

      Tax law can be very complex. Unlike many other areas of the law, tax law changes every year. This means that you should speak with an attorney who has up-to-date knowledge of Pennsylvania income tax laws if you have any questions about your tax obligations in Pennsylvania. There are many attorneys throughout Pennsylvania with tax law experience who may be able to help.