PA Local Taxes

[Lion]

Okay, I struggle with these every year doing my son's taxes, but last year he bought property and will probably be itemizing so I better pay attention. Which, if any of the following can be deducted with State and Local Taxes:

Occupation Tax $5
School District Tax $70
School District Tax $914.79
Real Estate Tax $347.61

Thanx to you PA preparers out there. I promise to print and save your answers in my son's folder this time so I have it for future years!

[KBTS]

I found a couple of discussions from the board that might help -including your's from last year : )

http://www.thetaxbook.com/forums/showthread.php?t=4928&highlight=pennsylvania

http://www.thetaxbook.com/forums/showthread.php?t=8210&highlight=local

The real estate taxes would go on line 6 on Sch A. I am guessing the $914.79 tax is from his W-2 and if so, it goes on line 5 of Sch A. Without more details, I'm not sure about the $70 school district tax - is it in box 19 of the W-2 or listed in Box 14?

[Lion]

I Searched!

I swear I searched since my son's been living in PA for a couple of years now! But, my short-term memory is fried. Thank you, thank you.

[BP.]

Okay, I struggle with these every year doing my son's taxes, but last year he bought property and will probably be itemizing so I better pay attention. Which, if any of the following can be deducted with State and Local Taxes:

Occupation Tax $5
School District Tax $70
School District Tax $914.79
Real Estate Tax $347.61

Thanx to you PA preparers out there. I promise to print and save your answers in my son's folder this time so I have it for future years!

See chart in pub 17, p. 149 for clarification, but . . .

Occupation tax- yes deductible.

School district taxes- yes deductible. Some are probably based on income, some are probably based on real estate, so check which is which to properly place on Schedule A, but all deductible.

Real estate tax- yes deductible.

Our local tax rules are as convoluted as our liquor laws!.

PS - Check his HUD-1 for deductible real estate taxes reimbursed to seller at settlement. Hope this will be helpful.

[Lion]

I found a couple of discussions from the board that might help -including your's from last year : )

http://www.thetaxbook.com/forums/showthread.php?t=4928&highlight=pennsylvania

http://www.thetaxbook.com/forums/showthread.php?t=8210&highlight=local

The real estate taxes would go on line 6 on Sch A. I am guessing the $914.79 tax is from his W-2 and if so, it goes on line 5 of Sch A. Without more details, I'm not sure about the $70 school district tax - is it in box 19 of the W-2 or listed in Box 14?

None of those amounts are from his W-2 (which is actually from Hancock, NY) but are separate receipts paid to a tax collector named Mary down the road who's open form 2-4 p.m. on Tuesdays but suggests you avoid the school bus times! I really don't understand PA taxation. There are also different amounts depending on how soon you pay the taxes.

[BP.]

paid to a tax collector named Mary down the road who's open form 2-4 p.m. on Tuesdays but suggests you avoid the school bus times! I really don't understand PA taxation.

Hilarious --- yes, you got the picture in focus all right!!!

[KBTS]

None of those amounts are from his W-2 (which is actually from Hancock, NY) but are separate receipts paid to a tax collector named Mary down the road who's open form 2-4 p.m. on Tuesdays but suggests you avoid the school bus times! I really don't understand PA taxation. There are also different amounts depending on how soon you pay the taxes.

OK - you are dealing with property taxes and per capita taxes. The property taxes would be the $914.79 (school district part) and the $347.61 (the county and township/city part). The $70 sounds like a school district per capita tax, but I've never seen one that high. If it would happen to be property taxes, the actual bill would have an assessed property value and the rate on it. If that is not there, then it is a per capita tax (along with the other $5) and is only deductible as a miscellaneous deduction subject to 2% of AGI.

[travis bickle]

Occupational Tax

See chart in pub 17, p. 149 for clarification, but . . .

Occupation tax- yes deductible.

School district taxes- yes deductible. Some are probably based on income, some are probably based on real estate, so check which is which to properly place on Schedule A, but all deductible.

Real estate tax- yes deductible.

Our local tax rules are as convoluted as our liquor laws!.

PS - Check his HUD-1 for deductible real estate taxes reimbursed to seller at settlement. Hope this will be helpful.

is entered in the DEDUCTIONS SUBJECT TO 2% THRESHOLD section -- see page 199 of Pub 17.

Real Estate tax and School District taxes all go in the Real Estate Tax area.

[Lion]

Thank you, all

Don't get me started on PA liquor laws! The great commonwealth of PA. Moving all the wealth in PA. I don't know how much Mary Wank down the road pays to be the tax collector, but it's bizarre. I wish I could set my hours to 2-4 p.m. on Tuesdays and Thursdays, but go out to meet the school bus at 3:15 p.m.! And, the tax goes down if you pay it early. There are dozens of these little taxes if you count the local taxes in the various cities in which they work. They're on the border of NY, so also substitute teach in Hancock, NY, with a NY W-2. I used to put these freebies for family (son and his girlfriend) on extension and prepare them after tax season, but girlfriend wants to fund her IRA with part of her refund -- I know, I'm running out of time for that and may put her on plan B -- and son needs his return for a mortgage. Well, we get free room at her parents' inn when we visit. It's the 100th anniversary of the inn: InnAtStarlightLake.com or you can find them on Facebook.