PA Help Needed

[Lion]

I'm in CT doing returns for my son's girlfriend in PA. A few questions:
1.) Wayne Highlands School Dist Tax Notice -- School Tax. Is this real estate tax?
2.) Real Estate Tax -- County Tax, Debt Tax, Township Tax. Are all three of those real estate taxes?
3.) Wayne Highlands School Dist Tax -- Occup Tax, Per Capita. What are those two?
4.) Does PA have personal property tax on vehicles like CT does?
5.) She bought a new car in 2006. What's PA's sales tax rate? She's low income and the sales tax deduction might be more beneficial than the income tax deduction.
6.) She lives in Lakewood, PA, and works in Starlight, PA, (employee); does she have any local tax returns? If so, can I use ATX's generic local PA form? And, what's her local tax rate?
7.) Anything else I should know about PA?
Thank you very much for your help. This looks like a long-term relationship, and my son's down there, too; so I guess I should learn this stuff....

[BP.]

Hi Lion, I'm gonna wing some of these out to you real quick while I have a chance. Maybe I can take a closer look later, or maybe KBTS'll chime on in.
Re your question #'s:
1- Probably, but see if there's a RE tax bill. PA school districts generally levy a tax on real estate owned in the dist as well as wages earned by residents of the dist.
2- County & Twp yes. Don't know what a debt tax is.
3- OT- levied on workers in dist & PC- levied on residents of the dist.
4- NO
5- 6%, but 7% for Philly
6- Don't know right now.
7- Probably!
Will try to readdress later!!

[KBTS]

1.) Wayne Highlands School Dist Tax Notice -- School Tax. Is this real estate tax?
Yes, sounds like it is.

2.) Real Estate Tax -- County Tax, Debt Tax, Township Tax. Are all three of those real estate taxes?
Not sure about the debt tax, but the other two are.

3.) Wayne Highlands School Dist Tax -- Occup Tax, Per Capita. What are those two?
Occupational Tax is flat amount just for working. Deductible as misc expense subject to 2% of AGI on Sch A. Per Capita tax is not deductible.

4.) Does PA have personal property tax on vehicles like CT does?
No

5.) She bought a new car in 2006. What's PA's sales tax rate? She's low income and the sales tax deduction might be more beneficial than the income tax deduction.
6%

6.) She lives in Lakewood, PA, and works in Starlight, PA, (employee); does she have any local tax returns? If so, can I use ATX's generic local PA form? And, what's her local tax rate?
She would have local tax returns to file. If she has lived in the area for a while, she should have received the forms in the mail. Local tax rates vary, but the standard amount is usually 1% split between the township or borough and the local school district. I cannot find information on the rate in Lakewood, but it looks like it is in the Wayne Highlands School District. You might try calling the school district to see who collects the tax for them - their number is 570-253-4661. Berkheimer Associates (a tax administrator) collects some of the taxes in that county, so they might be the collectors. Their phone number is 800-360-5765.

7.) Anything else I should know about PA?
As you can see, the local stuff is the worst. PA state return is basically a flat 3.07% with almost no deductions taken from income. You cannot combine a loss from one class of income to offset income from another - i.e. a capital loss against wages is not permitted. If taxpayer's income is low enough, there is a program called tax forgiveness which is claimed on Schedule SP.

[JON]

Found out the hard way.

You have to google the local taxing area and get a copy of the form. For the "generic" you need county number and taxing authority name. I called PA state help line who was kind enough to give me the local number, who was kind enough to give me the website. Any more PA's and I will send them to you>

[Lion]

Thank you, all

Thank you very much. You've been a big help.