Hey Pennsylvania tax preparers... Here in Indiana I haven't yet prepared a PA return but I have one this year. Taxpayer had local tax - locality name is Limeri - and I'm not sure how to deal with this on the PA tax return. Is there a way for the taxpayer to take credit on the PA tax return for these local tax amounts withheld? If so, I'm open to suggestions. Haven't been able to solve it using my tax software or the internet. Thanks.
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PA local earned income taxes are filed and paid separately from the state return, so there is no place on the PA-40 for the local stuff. Local income tax rate is determined (at least in 2011 it was) by where the taxpayer lived. The locality name on the W2 could likely be completely wrong. You can try this website to look up the correct locality and tax collector
You can use the links on the left to find the correct locality for where they lived and then use the historical rates for municipal tax to get the 2011 rate and collector. -
No deduction
No - the local tax is not deductible on the PA return. You would file the local return with the local tax collector. In the past it was hard to know who to file it with but starting with 2012 they have one tax collector per county.Originally posted by Hoosier View Post
What I would do to get the address and where to file is go to www.newpa.com. The on the right hand side click on Click here for EIT rates and PSD codes.
Click on Click here if you are an Employee or are Self Employed.
Scroll down a little and click on Address Search.
Enter in the address where the employee lived for both addresses. It will give you the name of the tax collector for 2012. I would contact them they seem to know most of the address for 2011. If not then contact the local municipality and ask them for the address.
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