Need PA help

[JenMO]

Client is part year PA and Part year MO. I think I have all the right forms filled out, but in their stack there was a 2012 local earned income tax return from Lanscaster Co. Do I have to fill out, and how do I do part year, where do I get the rate. Please help

[marlenew]

You will need to file a local earned income tax for the portion of the year that they lived in Lancaster County. Depends on which city in the county they lived what the rate is. You can go to their website www.lctcb.org and get the rate based on their residence. Basically you just need to pro-rate the income as the form is quite simple.

[JenMO]

It looks like I can just put on the form what they earned in PA. Is there somewhere I have to put in their wages for MO?

[KBTS]

If they moved out of PA, you only need to show the wages earned while in PA.

[Gary2]

Check the rules. The local earned income tax in PA is a flat tax, so for most people, the withholding on a W-2 exactly matches the tax, and no filing is needed. However, if there's self-employment income (Sch. C, partnership, etc.), employee business expenses, or more than one locality involved, then a return may be needed.

[KBTS]

Check the rules. The local earned income tax in PA is a flat tax, so for most people, the withholding on a W-2 exactly matches the tax, and no filing is needed.

This is not necessarily true. Some of the tax collection companies require the return to be filed even if the withholding is correct. They will even go as far as to send out a deficiency notice for failure to file and fine the taxpayer. I had one company fine a dependent of a client for not filing a return one year. The dependent was in college and had no income - I called the company to explain and was lectured by them of the need to file a return and they acted like they were doing the kid a favor by forgiving the fine.

[John of PA]

Also make sure you fill out the top of the form in the space for showing the dates lived in PA and the dates lived in MO. Also feel free to call the Lancaster County Collection Burea as they usually are helpful over the phone, or at the very least, visit their web sight. Remember this tax is only on earned income, that income income from working.

[BP.]

local earned income tax in PA is a flat tax, so for most people, the withholding on a W-2 exactly matches the tax, and no filing is needed.

This is not necessarily true. Some of the tax collection companies require the return to be filed even if the withholding is correct. They will even go as far as to send out a deficiency notice for failure to file

Agee with KBTS. Filing is required in the PA jurisdictions I encounter that levy an EIT.

Also make sure you fill out the top of the form in the space for showing the dates lived in PA and the dates lived in MO. Remember this tax is only on earned income, that income income from working.

Great reminders. Have seen people mistakenly enter their 1099-Rs.

where do I get the rate

http://munstatspa.dced.state.pa.us/Registers.aspx

[Gary2]

This is not necessarily true. Some of the tax collection companies require the return to be filed even if the withholding is correct. They will even go as far as to send out a deficiency notice for failure to file and fine the taxpayer. I had one company fine a dependent of a client for not filing a return one year. The dependent was in college and had no income - I called the company to explain and was lectured by them of the need to file a return and they acted like they were doing the kid a favor by forgiving the fine.

You're quite right, and I should have been clearer, to say to check the rules with the particular jurisdiction. My time in PA pre-dates any use of collection companies, as far as I know.