Pa Question

[BOB W]

I have a client that moved from NY to PA. The only problem I have is allocating Div Capital Gains. I can't find where to enter it on PA return?

Interest and Orginary Div, no problem. PA Sales form does not show CG from Div schedule. How/Where is it entered?

[BP.]

I have a client that moved from NY to PA. The only problem I have is allocating Div Capital Gains. I can't find where to enter it on PA return?

Interest and Orginary Div, no problem. PA Sales form does not show CG from Div schedule. How/Where is it entered?

Hi, Bob. Capital gains distributions are reported on the PA-40 on Line 3- Dividends and Capital Gains Distributions Income. If you need to use a PA Schedule B (divs over $2,500) then the capital gains distributions go on line 3 of that schedule, to flow to line 3 of the PA-40. Hope that helps. Barb

[BOB W]

Hi, Bob. Capital gains distributions are reported on the PA-40 on Line 3- Dividends and Capital Gains Distributions Income. If you need to use a PA Schedule B (divs over $2,500) then the capital gains distributions go on line 3 of that schedule, to flow to line 3 of the PA-40. Hope that helps. Barb

Thanks Barb, I will look it over when I work on that return again.

[BOB W]

PA sucks, they tax any and all Int and Div with NO exemptions or low income consideration. ??????

[BP.]

PA sucks, they tax any and all Int and Div with NO exemptions or low income consideration. ??????

Hey! Doing NY's are a challenge, too!!

But, yeah, just a flat tax here, with no exemptions.

As far as low income consideration, there is something called PA Special Tax Forgiveness. It is figured on PA Schedule SP. Rate of tax forgiveness is in 10% increments and depends on income, marital status & number of dependent children. For part year residents, which I think is your case, all income must be considered to determine eligibility. Check out the instructions for the details.

BTW, talk about sucking, PA doesn't tax retirement income, but had a client this year who moved from PA to NY, THEN took distribution- taxed to NY!!! Yeah, they're bad planners.

Post if more Q's.

[BOB W]

Hey! Doing NY's are a challenge, too!!

But, yeah, just a flat tax here, with no exemptions.

As far as low income consideration, there is something called PA Special Tax Forgiveness. It is figured on PA Schedule SP. Rate of tax forgiveness is in 10% increments and depends on income, marital status & number of dependent children. For part year residents, which I think is your case, all income must be considered to determine eligibility. Check out the instructions for the details.

BTW, talk about sucking, PA doesn't tax retirement income, but had a client this year who moved from PA to NY, THEN took distribution- taxed to NY!!! Yeah, they're bad planners.

Post if more Q's.

NY doesn't tax the first $20,000 of IRA/pension income and excludes all gov't pensions.

[BP.]

NY doesn't tax the first $20,000 of IRA/pension income and excludes all gov't pensions.

Yes, I saw that, but thanks for the information. I was thinking that you'd probably remind me of that; so I appreciate it. Does that exclusion apply to premature distributions, too?

[BOB W]

Yes, I saw that, but thanks for the information. I was thinking that you'd probably remind me of that; so I appreciate it. Does that exclusion apply to premature distributions, too?

No, one must be 59 1/2 at the time of distribution. NYS allows exclusion if during the year monthly payments were recieved after 59 1/2. Pre 59 1/2 it is taxable. So the state return needs to be adjusted for the partial year issue.