Does PA collects City Tax?

[anu31402]

A new client was refered to me. He worked in Philadelphia but lived in NJ. W2 did not show PA state tax withheld BUT city tax was withheld and posted to box 19.

I have prepared Form PA-40 and moved the figure in box 19 to 17. Am I right or do I need to file PA city tax?

Thanks in advance

Kay
New York

[thomtax]

I don't know about your specific situation, but as I found out on a client that moved here from PA, yes many cities do collect an income tax. And, the way I found out was that as soon as the state was filed, a letter arrived in the mail from the city demanding their pound of flesh.

LT

[gkaiseril]

Yes.

For local rates and other information:

http://www.newpa.com/default.aspx?id=133

[barbara]

does PA collects City Tax

NJ and Pa have a reciprocal agreement. The tax is paid to the state of residency. Your client would pay NJ state tax and also phila city tax. So the amount for the local tax would go on a Phila return (sorry I don't know that form number).

[travis bickle]

i forgot the form number also

but phillie has changed.

if your client was a W2 wage earner, go to this web site and note the bold red print statement: http://www.phila.gov/Revenue/

if for some reason, you do not believe that site, go to this page and note the entire answer to the 2nd question from the top -- http://www.phila.gov/Revenue/FAQs.html

in other words, philadelphia has already extracted its due and there is no sense to filing a non-resident return because there will be no refund.

I used to file taxes from a suburb of philadelphia, and for two straight years I never saw a W2 person receive any refund when we filed a non-resident philadelphia return.

before you ask, the purpose of the non-resident philadelphia return is to get revenue for services "consumed" by those individuals (e.g., road maintenance, snow removal, etc).

philadelphia and chicago, best politicians money can buy.

[BP.]

A new client was refered to me. He worked in Philadelphia but lived in NJ. W2 did not show PA state tax withheld BUT city tax was withheld and posted to box 19.

I have prepared Form PA-40 and moved the figure in box 19 to 17. Am I right or do I need to file PA city tax?

Thanks in advance

Kay
New York

As another Barbara mentioned, PA & NJ have reciprocity, so no need to file the PA-40 since no PA state income tax was w/h. Probably no need to file PHL city tax return either. Non-residents employed in the city have the tax withheld and that's that. There should be no shift in the W-2 box 17 & 19 amounts. Barb

[anu31402]

Thanks All

Thank you all for your advice and directions.