How To File Philadelphia City Tax Return?

How to file City taxes Filing returns online. Some, but not all, tax returns can be filed through the Department of Revenue’s eFile/ePay portal. Filing returns through Modernized e-Filing (MeF) You can use the IRS Modernized e-Filing program to file some City of Philadelphia taxes.

Do I have to file Philadelphia city taxes?

While it may seem like almost everyone has to file, there are a few exceptions: You don’t live or work in Philadelphia – If you live and work outside the city, you are not responsible for filing a city tax return. You are a W-2 employee – As we have mentioned, you are also safe if your employer pays city tax on your behalf.

What are the main income taxes in Philadelphia?

These are the main income taxes: City of Philadelphia Wage Tax – This is a tax on salaries, wages, and other compensation. City residents have to pay 3.8712% and non-residents who work in the city owe 3.5019% (2020 tax year). The deadline is weekly, monthly, semi-monthly, or quarterly depending on the amount of Wage Tax you withhold.

Do I have to file Philadelphia taxes if I live abroad?

You don’t live or work in Philadelphia – If you live and work outside the city, you are not responsible for filing a city tax return. You are a W-2 employee – As we have mentioned, you are also safe if your employer pays city tax on your behalf.

How do I file 1099 taxes in Philadelphia PA?

Taxpayers who need to file 1099 or W-2 forms can also use the eFile/ePay portal to upload these forms via file transfer protocol (FTP). Filing returns through Modernized e-Filing (MeF) You can use the IRS Modernized e-Filing program to file some City of Philadelphia taxes.

Do I need to file a Philadelphia city tax return?

“Every individual, partnership, association, limited liability company (LLC), and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must file a Business Income & Receipts Tax (BIRT) return”.

How do I claim Philadelphia city Wage Tax back?

If you have trouble requesting a Wage Tax refund on the Philadelphia Tax Center, please call (215) 686-6600. For refund-related inquiries, please call (215) 686-6574, 6575, or 6578. You can also email [email protected] for help or answers to your questions.

Is there a Philadelphia local tax return?

Business Income & Receipts Tax Return (BIRT)

Individuals engaged in any for-profit activity within the city of Philadelphia must file a BIRT return. Additionally, individuals who maintain a Commercial Activity License (CAL) must file a BIRT return, even if they didn’t actively engage in any business.

Who is required to file a Philadelphia tax return?

Every resident, part-year resident or nonresident individual must file a Pennsylvania Income Tax Return (PA-40) when he or she realizes income generating $1 or more in tax, even if no tax is due (e.g., when an employee receives compensation where tax is withheld).

Where do I file pa local taxes?

For local Earned Income Tax (EIT) forms and assistance, contact the local EIT collector serving the municipality in which you reside. Visit the PA Department of Community and Economic Development (DCED) web site to find the name, address, and phone number for your local EIT collector.

How do I know if I need to file local taxes?

Yes. If you live in a jurisdiction with an Earned Income tax in place and had wages for the year in question, a local earned income return must be filed annually by April 15, (unless the 15th falls on a Saturday or Sunday then the due date becomes the next business day) for the preceding calendar year.

How much is city tax in Philadelphia?

The local income tax rate for the city of Philadelphia, Pennsylvania, has changed. The resident income tax rate has changed from 3.8712 percent to 3.8398 percent.

Does TurboTax do Philadelphia?

No, TurboTax doesn’t handle Philadelphia city taxes. According to the City of Philadelphia, If you are a resident of Philadelphia or a non-resident who works in Philadelphia, and your employer is not required to withhold the tax, you must register for an Earnings Tax Account.

What do I send with my PA tax return?

Do not mail a photocopy of your PA-40 or a copy of your electronic PA tax return. Federal Forms, W-2, 1099-R, 1099-MISC, 1099-NEC. Photocopies of your Form(s) W-2 (be sure the information is legible), or your actual Form(s) W-2. Include a statement to list and total your other taxable compensation.

What is the Philadelphia city Wage Tax for non-residents?

The City of Philadelphia announced that effective July 1, 2021, the Earnings Tax rate for nonresidents is 3.4481%, down from 3.5019%, and the rate for residents is 3.8398%, a decrease from the previous rate of 3.8712%.

Can you get a local tax refund?

You might receive Form 1099-G reporting a state or local income tax refund. If so, that doesn’t mean your refund is automatically taxable. If you claimed the state or local income taxes you paid as an itemized deduction on last year’s return, usually your state or local refund is taxable.

How much federal tax is deducted from paycheck in PA?

Overview of Pennsylvania Taxes

Gross Paycheck $3,146
Federal Income 15.22% $479
State Income 4.99% $157
Local Income 3.50% $110
FICA and State Insurance Taxes 7.80% $246

Do I have to pay Philadelphia City tax if I live in NJ?

PA residents will get a credit for income tax paid to NJ on wages earned there. NJ will do the same. PA has a flat tax rate of 3.07 percent. The NJ tax rate increases by income level.

Where do I file my Philadelphia Birt?

File and pay online

You can file BIRT returns and make payments through the Philadelphia Tax Center.

What is the income tax in Philadelphia?

  • Sustainable Jump Start
  • Healthy Beverage Tax Credit
  • Community Development Credit
  • Distressed Business Tax Credit
  • Green Roof Tax Credit
  • Jobs Creation Tax Credit
  • Keystone Opportunity Zone (KOZ)
  • Life Partner and Transgender Care Health Benefits Tax Credits
  • Philadelphia Re-Entry Employment Program (PREP)
  • Sustainable Business Tax Credit
  • What is the Philadelphia resident tax rate?

    Tax rate 3.8712% for residents, and 3.5019% for non-residents Important update: Philadelphia taxpayers now have until May 17, 2021, to file and pay their 2020 Earnings Tax without interest or penalties.

    How much is property tax in Philadelphia?

  • Who pays the tax. Your business is physically located in Philadelphia. You operate your business from your Philadelphia residence.
  • Important dates. The Use and Occupancy Tax must be filed and paid monthly on the 25th of each month.
  • Tax rates,penalties,&fees. How much is it?
  • Discounts&exemptions. Are you eligible for a discount?
  • How do you file local taxes in PA?

  • YATB is Hiring!
  • Cell Phone&Electronic Device Policy. File your Individual Quarterly Estimated Payments Online!
  • About York Adams Tax Bureau
  • Office Hours. Effective April 24,2017,the Board of Directors enacted a policy prohibiting the use of cell phones or other electronic recording devices by visitors in the lobby of
  • Do I Have to File a Philadelphia City Tax Return?

    If you live in Philadelphia, chances are you are familiar with the city’s taxation system and procedures. In addition to federal and state taxes, Philadelphians must pay additional fees for alcoholic drinks, sweetened beverages, dog ownership, and athletic events. On the City of Philadelphia website, you may find out more about the complete spectrum of city taxes that are levied.

    Who Needs to Pay Philadelphia City Taxes

    • To determine whether or whether you are required to pay Philadelphia taxes, you should ask yourself a few fundamental questions: Is it true that I reside in the city? Is it true that I work in the city?

    Consider the following questions to determine whether or not you are required to pay Philadelphia taxes: How long have I been a city resident? How many years have I been a city worker?

    Philadelphia City Income Taxes to Know

    The following are the most significant income taxes: Wage Tax in the City of Philadelphia – This is a tax on salaries, wages, and other forms of remuneration.Residents of the city must pay 3.8712 percent in taxes, while non-residents who work in the city must pay 3.5019 percent (2020 tax year).Depending on how much Wage Tax you withhold, the deadline is either weekly, monthly, semi-monthly, or quarterly.

    The Business Income and Receipts Tax (BIRT) – formerly known as the Business Privilege Tax (BPT) – is a type of income tax that applies to businesses.To put it another way, you are being charged for the privilege of conducting business in the city of Philadelphia.A Business Income & Receipts Tax (BIRT) return is required to be filed by ″any individual, partnership, association, limited liability company (LLC), and corporation who is involved in a business, profession, or other activity for profit within the City of Philadelphia.″ You are accountable for paying 1.415 percent of your gross income (before costs) and 6.30 percent of your net income on each $1,000 of gross income (before expenses) (2020 tax year).If your gross earnings exceed $100,000, you are entitled to a statutory exemption, which essentially decreases the amount of tax you would due.The deadline for submissions is April 15.

    NPT – The Net Profits Tax (NPT) is another type of business tax that is levied on the net profits made from the operation of a trade, business, profession, enterprise, or other activity.Residents of Philadelphia and non-residents who conduct business in the city may expect to get a charge.If you live in this state, you will be required to pay 3.8712 percent of your net income in taxes for the 2020 tax year.Non-residents are liable for 3.5019 percent of the total (2020 tax year).The deadlines are April 15th and June 15th, respectively.

    School Income Tax (SIT) — A sort of property tax levied on specific types of passive income, the SIT is levied against schools.This includes revenue from your assets, some company dividends, and net income from rental duplexes, amongst other sources of income.Income from interest-bearing institutions such as banks, credit unions, and savings and loan investments is tax-free.If you receive any of these forms of income, you will be required to file a tax return and pay any taxes that are owed.Schools will be subject to a 3.8712 percent tax rate in the 2020 tax year.The deadline for submitting your application is April 15.

    Then there’s the issue of your earnings.Contract workers in the city who get a year-end 1099 form must submit both the BIRT and the NPT, which are two separate forms of taxation.Employees may also bear some of the responsibility.In the event that your employer does not withhold and submit city taxes on your behalf, you should expect to receive a charge.Individual employees who travel to Philadelphia on a temporary basis — such as professional sportsmen and entertainers — are also subject to taxation on the money they make while working in the city’s economy.It is your responsibility to file and pay taxes on any money you receive while in the city, whether as a keynote speaker at a conference or as a politician delivering a speech.

    It should go without saying that all municipal businesses – whether they are sole proprietorships, partnerships, c-corporations, or s-corporations – are required to submit a tax return with the city, regardless of whether they generate any money.If your company does not owe any taxes, you are still required to file (and you should do so).

    Who Doesn’t Need to File

    • Despite the fact that it appears that practically everyone is required to file, there are a few exceptions: You don’t live or work in Philadelphia — If you live and work outside of the city, you are not required to file a Philadelphia tax return.
    • Your employer pays your city tax on your behalf — As previously stated, if your employer pays your city tax on your behalf, you are protected. This is standard practice for W-2 employees, but you should always double-check to be sure.
    • Pension or Social Security benefits are your only sources of income – you do not need to file a Philadelphia city tax return if you receive these sorts of benefits.
    • You are a non-resident worker for a Philadelphia-based company who has been notified that you will be required to work from home starting in 2020 – This is a new provision for the 2020 tax year, resulting from COVID-19. In November 2020, the city released Wage Tax Policy Guidance, which says that non-resident workers are ″not liable to the Philadelphia Wage Tax during the period they are forced to labor outside of Philadelphia. As a result of this criterion, a nonresident employee who is required to undertake labor outside of Philadelphia, including work from home, is not liable to the Wage Tax.

    Keep an eye on this last exception and watch whether the regulations change when the tax year 2021 comes around. For the time being, at least, some of us are enjoying a well-earned rest. The most recent update was made on March 18, 2021.

    How to file and pay City taxes

    There are a variety of options available for filing and paying taxes to the City of Philadelphia.In most cases, tax returns are submitted and payments are made at the same time.However, there are several circumstances in which someone may be required to file a tax return even though they do not owe a payment to the government.For example, if you’re self-employed and your firm incurs a loss over the course of a year, you may not be liable for any tax payments.You are still obligated to file business tax returns with the Department of Revenue, even if you do not have employees.Tax returns should be filed on a regular basis, and you should be aware of any deadlines linked with the taxes you are responsible for paying.

    The City’s new tax filing and payment website has been made available by the Department of Revenue.From now on, you may submit and pay the following taxes electronically through the Philadelphia Tax Center: BIRT, Wage, NPT, Earnings, Liquor, SIT, Beverage, and Tobacco.Please refer to our online tax center guide if you need assistance getting started or for answers to frequently asked inquiries.

    All other taxes will continue to be processed through our eFile/ePay system.

    How to file City taxes

    Filing returns online

    • All Philadelphia taxes may be submitted electronically. There are a few taxes that must be filed online. There are five of them: the Philadelphia Beverage Tax (PBT), the Liquor Tax, the Wage Tax, and the Use and Occupancy (U&O) Tax.

    Taxpayers who need to file 1099 or W-2 forms can also do so electronically by uploading the necessary documents.

    See also:  How Fast Is Efile Tax Return?

    Filing returns through Modernized e-Filing (MeF)

    • Some City of Philadelphia taxes can be filed electronically through the IRS Modernized e-Filing program. Many tax preparation software products have been approved by the Department of Revenue, including those from numerous different businesses. Business Income & Receipts Tax (BIRT)
    • Net Profits Tax (NPT)
    • School Income Tax (SIT)
    • and other taxes are all available through electronic filing.

    Filing paper returns

    Taxpayers can opt to file their returns on paper for a variety of taxes, including PBT, liquor, wage, and U&O taxes.Taxpayers are responsible for downloading, completing, and returning blank copies of these forms, which are made accessible online by the Department of Revenue (Revenue).These forms, as well as the online pages for each tax, have detailed information on where and how to file your returns.You can also find instructions on the forms themselves.

    How to pay City taxes

    For each tax, the online page dedicated to that tax will provide extensive instructions on how to pay that particular tax. The approaches provided here are intended to be used as a broad guideline.

    Online

    • The following taxes can be paid online through the Philadelphia Tax Center: Business Income and Receipts Tax (BIRT)
    • School Income Tax (SIT)
    • Net Profits Tax (NPT), Wage Tax, Earnings Tax
    • Philadelphia Beverage Tax (PBT)
    • Tobacco Tax
    • Liquor Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco Tax
    • Tobacco
    • You can pay these taxes by logging into the Philadelphia Tax Center, or you can pay as a guest from the webpage, which requires no login or password. Choose one of the choices available under the ″Payments″ section and follow the on-screen steps to make a payment as a guest. Using the eFile/ePay website, you may make payments for the following taxes: Outdoor advertising, parking, valet parking, vehicle rental, and use and occupancy taxes are all examples of taxes that are levied in the United States.
    • You will need the following information in order to pay taxes using our eFile/ePay portal: your Social Security number/EIN or Philadelphia tax account number
    • Your PIN number from the Department of Revenue
    • The nine-digit routing number of your bank, as well as the number of your savings or checking account

    When you register your business online with the city, the city generates a PIN for you. If you have never used our online system before, you will need to go to our online services screen and select ″Apply for a PIN″ from the drop-down menu on the left-hand side.

    By eCheck or by credit/debit card

    You can pay using an eCheck or a credit/debit card at the Philadelphia Tax Center, on the eFile/ePay website, or on the Real Estate Tax balance lookup and payment website, among other locations.We encourage taxpayers to take advantage of eCheck, which is completely free.Payments made by credit/debit card are subject to a processing charge, which is collected by our payment processing provider rather than the City.With credit card payments, a 2.25 percent service fee is added on top of the total amount due.Payments made in person using Visa debit cards are subject to a $3.95 processing fee.

    By Modernized e-Filing (MeF)

    If you submit your City taxes using the Modernized e-Filing system, you will be able to pay your bills through the authorized software packages as well. Please keep in mind that MeF allows you to plan your payment date up until the day on which the taxes are due.

    By mail

    Send the payment coupon that was attached to your bill, together with a check or money order, to the address on the coupon.Make sure to include the tax type as well as the account number on the cheque.Use the postal address shown on the bill, or look up the relevant tax on the website’s page for further information.If you need to print a payment coupon, you should visit the Philadelphia Tax Center or our eFile/ePay website.

    In person

    It is also possible to pay your account in person with a cheque or money order at one of three designated customer care centers. In person at the Municipal Services Building, you can pay with cash.

    By phone

    If you prefer to pay your Real Estate Tax over the phone with a credit card, dial (877) 309-3710 to do so. If you have any questions or concerns about this telephone system, please contact customer support at (800) 487-4567.

    Help with tax accounts & payments

    Questions about your account

    • Those with basic account issues should contact (215) 686-6600
    • those with Real Estate Tax inquiries should contact (215) 686-6442.

    Video instruction for online filing

    Please refer to our YouTube videos for more information about our online filing system and how to use it.

    Request 2021 Wage Tax refunds online

    • The good news for Philadelphia Wage Tax payers is that you may now submit your refund claims for the year 2021 online! Simply go to the Philadelphia Tax Center to make your request in a straightforward manner. Without a username and password, you may view all of the online forms from the Tax Center’s home page without going through any further steps. The procedure is both quick and secure. Our online system is also accessible via mobile devices and is available in both English and Spanish languages. The Wage Tax in Philadelphia is a tax levied on salaries, wages, commissions, and other forms of income. It is your employer that is responsible for withholding and remitting this tax to the City on your behalf. It is necessary to be one of the following types of individuals to qualify for a refund: non-resident salaried or hourly employees who are required to work outside of the City as a result of COVID-19
    • commissioned or salaried employees who have stock options and/or business expenses
    • low-income taxpayer who qualifies for Pennsylvania tax forgiveness
    • or a Philadelphia resident who has paid taxes to another jurisdiction.

    Here’s what you’ll need in order to submit an application: For salaried or hourly employees, their W-2s and a letter from their employer are required to be included with their request for refunds.The letter must be signed and printed on corporate letterhead to be considered official.It must also include a list of all of the dates and locations where you worked outside of Philadelphia.If you are requesting a refund for only a portion of the year, your letter must explain why.To obtain a refund for business costs, you must first file a PA Schedule UE with the Commonwealth of Pennsylvania and attach this form to your Philadelphia refund petition before submitting your request.Income-based petitioners will require their W-2s, as well as copies of their A-40 Personal Income Tax Return and PA Schedule SP, in order to be considered.

    You must submit them with the Commonwealth and send copies of them to your refund request in order to get your refund.We will not be able to complete your request unless you provide us with these PA forms.Submit your application online.

    Once you’ve gathered everything you’ll need, you’ll need to: Then, on the webpage, scroll down until you reach the ″Refunds″ section and click on ″Request Wage Tax Refund.″ On the ″Tax filing information″ screen, select the return type that pertains to your situation from the drop-down menu.As an example, applicants for low-income refunds must select the option ″I qualify for the income-based PA tax forgiveness rate″ from the drop-down menu.Remember to choose the relevant year from the drop-down menu for which you want a refund.Non-resident petitioners will be prompted to download and complete an Excel spreadsheet, which will be available on the website.

    1. Make use of this template to ensure that all of your information is captured correctly.
    2. Once you’ve finished, click on ″Add attachments″ to make it even easier to send your spreadsheet to the Philadelphia Tax Center.
    3. Before you submit your work, consider the following: You must complete and submit the relevant form in order to be eligible for a Philadelphia Wage Tax refund.
    4. Before submitting your petition, make sure you thoroughly read each form and answer all of the questions.
    5. It is not possible, for example, to substitute the COVID-EZ form for the lengthier form in all circumstances.
    6. The COVID–EZ form is intended solely for COVID remote work.
    1. Non-residents who were forced to labor outside the city as a result of the epidemic should complete this form.
    2. If you received overtime compensation, severance money, travel costs, business expenditures, or stock options, you should not utilize the COVID-EZ form.
    3. Instead, utilize the standard online salaried form to collect all of this information.
    4. Also, if the number of days you work outside of the city exceeds the number of COVID remote days, please submit the usual form.

    Despite the fact that paper versions of the online Wage Tax petitions for 2021 are available, we strongly advise you to utilize the online form instead.This will result in fewer mistakes and a faster overall processing time.In the event that you have any difficulties seeking a Wage Tax refund through the Philadelphia Tax Center, please contact them at (215) 686-6600.If you have any questions about your refund, please contact (215) 686-6574, 6575, or 6578.

    • You can also send an email to [email protected] if you need assistance or have questions.

    Taxpayer Annual Local Earned Income Tax Return (F-1) FAQ

    Earned income is defined as compensation determined in accordance with Section 303 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, and regulations in 61 Pennsylvania Code Part I, Section B, Art.V.Earned income is defined as compensation determined in accordance with Section 303 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, and regulations in 61 Pennsylvania Code Part I, Section B (relating to personal income tax).Employee business expenditures are permissible deductions under Article III of the Tax Reform Code of 1971, which determines what qualifies as a business expense.

    The amount of any housing allowance paid to a member of the clergy is exempt from being taxed as earned income under the Internal Revenue Code.Net profits are defined as the net income generated by the operation of a business, profession, or other enterprise, as defined by the Tax Reform Code of 1971 and the rules in 61 Pennsylvania Code Part I, Section B, Art.V.

    (relating to personal income tax).Income that is not derived from the provision of services and that is in the type of earnings from an investment is excluded from the definition of passive income.The following items are excluded from the definition of farming for taxpayers who are involved in the agricultural business, profession, or activity:

    1. Profits from the sale of farm machinery
    2. profits from the sale of animals kept for twelve months or longer for draft, breeding, or dairy purposes
    3. and profits from the sale of other farm capital assets are all included in the calculation of net farm income.
    What income is specifically exempt from the earned income tax?

    Dividends, interest, income from trusts, bonds, insurance profits, and stock dividends (all listed on Schedule D) are all free from taxation.Among the other exemptions are payments for disability benefits, old-age benefits, retirement pay, pensions (except payments deemed Early Distributions), social security payments, public assistance, or unemployment compensation payments made by a government agency, any wages or compensation paid by the United States for active military service, including bonuses or additional compensation for such service, and supplemental unemployment compensation from a state or local government.Find out what is taxable and what is not taxable in order to avoid paying unnecessary taxes.Overview of Gross Compensation in the Pennsylvania Personal Income Tax Guide Download the Pennsylvania Personal Income Tax Guide (PIT) in pdf format.Always Taxable Income pdf Never Taxable Income pdf Only Taxable Income pdf Occasionally Taxable Income pdf

    Active Duty Pay
    • According to ACT 32 standards, there has been a change in the way active duty military pay is taxed for 2012. From now till the end of 2016, All military salary earned while on active service is free from taxation, regardless of where it was earned.
    • 2012-2015: Active duty military pay is taxed if it is earned in the state of Pennsylvania. If military pay is earned outside of Pennsylvania, it is not subject to PA taxation.
    • Active duty military salary is free from taxation in years 2011 and before, regardless of where it was received.
    Early Distribution:

    Taking an Early Distribution (before to turning 59 12 or using an authorized exemption) from a retirement plan means that the amount of the distribution that is taxable to the Commonwealth of Pennsylvania is also taxable to the city or town where you live.As a result, the amount contained on Line 1 of your PA-40 form as compensation should be added locally and mentioned on Line 1 of the form.

    Out of State Tax Credits
    • For Tax Year 2012 and subsequent years, there has been a change in the taxes to which Out of State Tax Credits may be applied to taxes that are owed. The modification was made in accordance with ACT 32 guidelines: ACT 511 tax rate (usually 1 percent) charged by your municipality/school district is the sole tax rate that can be used for out-of-state credits from 2012 to 2017. In addition, the credit may not be used to taxes paid for the acquisition of open space (ACT 153) or for the removal of an Occupational Assessment Tax (ACT 24/130). Depending on whether you live in a jurisdiction that imposes one or both types of taxes, the rate at which you may claim an Out of State Credit is stated on your tax return.
    • If you live in a municipality or school district that has levied a tax under ACT 1 of 2007, you can use your out-of-state credits to the entire tax rate charged by your municipality or school district in 2011 and preceding years, as well as in 2018 and onward. ACT 1 taxes are levied in some areas, and the rate at which you can claim an Out of State Credit is recorded on your tax return if you live in one of those areas.
    If the tax is withheld in another PA community where I work, do I also pay the PA District in which I live?

    No, in most cases, the tax withheld by your employer will be remitted to the jurisdiction in where you reside. You are, however, still obligated to file an annual tax return with your resident taxation jurisdiction, regardless of where you live.

    See also:  When Can I Fill Out My Tax Return?
    If I am subject to the Philadelphia wage tax, must I pay this tax?

    While this is not the case, you are still obligated to complete a final tax return.If you are working in Philadelphia, you may be able to claim a credit for the Philadelphia Wage Tax against your duty to your resident jurisdiction, but the credit cannot be greater than the rate of your resident jurisdiction’s tax.If the amount of withholding is larger than the tax rate in your resident taxing jurisdiction, there will be no refund or credit available.It is not possible to use Philadelphia wage tax credits to your spouse’s tax burden.Please be aware that, as a result of a court ruling handed down on January 7, 2013, those who have City of Philadelphia parking permits will no longer be able to use them.Non-resident wage tax withholding may be used as a credit against wages received OUTSIDE of the city if the taxes are paid by the non-resident.

    Taxpayers who have had Philadelphia wage tax deducted in excess of their obligation will not be entitled to a refund.The crediting provisions will be used in the same manner as they were in tax years 2011 and prior to the adoption of this judgment.

    Whose Earned Income Tax will be withheld by their employer?

    With effect beginning in the first quarter of 2012, all employers who maintain a physical location in the Commonwealth of Pennsylvania are required to determine which of the two tax rates applicable to an employee, either the employee’s resident tax rate or the work location’s non-resident tax rate, is the higher of the two tax rates, withhold at that rate, and remit the taxes due at least once a quarter.

    Must all taxpayers file a final return?

    Yes.If you live in a jurisdiction that has an Earned Income Tax in place and received wages during the calendar year in question, you must file a local earned income return by April 15 (unless the 15th falls on a Saturday or Sunday, in which case the due date is the next business day) for the calendar year that has passed.If you did not have any earned income, you must explain why on your final tax return.

    What should I do if I lived in a jurisdiction/municipality for only part of the year?

    Any length of time during which you were or are a resident of a municipality for which Berkheimer is the tax administrator necessitates you to file a return.You must file a tax return for the period during which you resided in that municipality and prorate your income, spending, withholding, and other obligations.On your final tax return, you must also complete the part under ″Change of Address.″ The following is a formula that you may use to calculate proration: Total annual income divided by 12 months or 365 days multiplied by the amount of time spent in the jurisdiction equals income taxable in that jurisdiction (same formula can be used for withheld and expenses)

    How can I update my information (name, address) with your company?

    To complete our online Individual File Maintenance form, please visit this link.

    What documentation do I need to submit with the final return?

    The paperwork you provide should be adequate to support the amounts stated on each line of your return, and may include (but not be limited to): W-2 forms (if applicable), State business reporting schedules (if applicable), expenditure schedules (if applicable), and other supporting documents.For non-resident state income taxes paid to a non-reciprocating state, you must include a copy of that state’s return with your final return in order to receive credit for any taxes paid there that are in excess of the PA taxes due on the same taxable income.If you have any questions, please contact your tax advisor.Pay special attention to each line of the accompanying tax return and instructions to determine the particular form or schedule that is necessary.Photocopies are accepted in lieu of originals.

    Where is my Earned Income reported on my W2?

    Your local earned income should be declared in the box entitled ″State Wages, Tips, and Other Earned Income″ on your tax return.(Please keep in mind that if the amount recorded in the State box differs significantly from the amount reported as Medicare Wages, you must provide an explanation for the discrepancy.) If this box is not filled out, you should go to the box under ″Medicare Wages″ for further information.You should keep in mind that if you are employed outside of the state, you should refer to the section entitled ″Medicare Wages.″ It is necessary to record the amount of local earned income tax withheld in the box labeled ″Local Income Tax.″

    What address do I send my return to?

    In the box labeled ″State Wages, Tips, and Other Income,″ enter the amount of money you earned in your home state.(Please keep in mind that if the amount recorded in the State box differs significantly from the amount reported as Medicare Wages, you must provide an explanation for the discrepancy in amounts.) You should refer to the box entitled ″Medicare Wages″ if this field is not completely filled out.Important: If you are employed out of state, you should refer to the box entitled ″Medicare Wages″ while completing your tax return.This information should be entered in the box under ″Local Income Tax″ if your local earned income tax was withheld.

    Who should I make my check payable to?

    All cheques for the local earned income tax should be made payable to the HAB-EIT (Houston Area Business and Industry Tax).

    How can I find out what jurisdiction my address is located in?

    The following link can help you determine the jurisdiction you are currently live in.

    Where can I locate the tax rate or PSD Code for a specific jurisdiction?

    If you want information on tax rates and PSD Codes, please visit this website.

    Can I file an extension for the Local Earned Income Tax?

    If you file a Federal or State Application for Extension, please give us a copy along with an estimate of your payment or file your extension online by April 15th to avoid late fees.

    How can I file an amended return?

    By clicking here, you may get a blank final return in PDF format. Clearly mark the top of the return with the words AMENDED RETURN and then fill out the form with the amended information. Please provide any supporting paperwork with your updated tax return as well as your modified tax return.

    My employer is located in an area with a distressed tax. Am I entitled to a refund?

    Some taxation authorities apply a distressed tax (such as Act 205 or Act 47) on both residents of that jurisdiction and non-residents who are employed inside the jurisdiction, depending on the circumstances.It is not refundable if the extra earned income tax imposed exceeds the earned income tax rate owed your residence municipality/school district under Act 511.Instead, that amount of the tax remains in the township or borough that implemented the distressed tax.

    TAXES 21-24, Pennsylvania (Local) Income Tax Withholding

    • Date of publication: August 20, 2021 Pay Period 16 of 2021 is the date of implementation. The local income tax rate for the city of Philadelphia, in the state of Pennsylvania, has been revised upward. There has been a decrease in the rate of resident income taxation from 3.8712 percent to 3.8398 percent, and a decrease in the rate of nonresident income taxation from 3.5019 percent to 3.4481 percent.

    The rest of the information stays unchanged. There is no action required on the side of the employee or the personnel office in this situation.

    1. To calculate gross biweekly wages, subtract the nontaxable biweekly Federal Employees Health Benefits (FEHB) payment from the total gross biweekly earnings. Note: The biweekly FEHB payment constitutes taxable income for the city of Philadelphia
    2. as a result, the biweekly FEHB payment should not be deducted for computing Philadelphia city income tax.
    3. To calculate the gross annual wages, divide the adjusted gross biweekly wages by the number of pay days in the tax year
    4. this is the gross yearly earnings.
    5. In order to compute the yearly Pennsylvania municipal income tax withholdings, calculate gross annual salaries by utilizing the following guidelines:
    City State/City Codes Resident Percentage Nonresident Percentage City Tax Status (Duty Station = DS;Resident = R)
    Bethlehem 42/0660 1.0000 1.0000 DS, R
    Bradford (voluntary) 42/0840 1.0000 1.0000 N/A
    Caln Township 42/1044 1.0000 1.0000 DS, R
    Camp Hill (voluntary) 42/1060 2.0000 1.0000 N/A
    Carlisle 42/1100 1.6000 1.0000 DS, R
    Erie 42/2640 1.6500 1.6500 DS, R
    Fairview Township 42/2769 1.0000 1.0000 DS, R
    Greene Township 42/3343 1.7000 1.0000 DS, R
    Gregg Township 42/3396 1.8000 1.0000 DS, R
    Hanover 42/3470 1.0000 1.0000 DS, R
    Harrisburg 42/3500 2.0000 1.0000 DS, R
    Horsham Township 42/3740 1.0000 1.0000 DS, R
    Kelly Township 42/4053 2.0000 1.0000 DS, R
    Lancaster 42/4180 1.1000 1.0000 DS, R
    Monroeville 42/5413 1.5000 1.0000 DS, R
    Philadelphia 42/6540 3.8398 3.4481 DS, R
    Pittsburgh 42/6600 3.0000 1.0000 DS, R
    Plains Township 42/6615 1.0000 1.0000 DS, R
    Reading 42/6900 3.6000 1.3000 DS, R
    Scranton 42/7460 3.4000 1.0000 DS, R
    South Lebanon Township 42/7894 1.0000 0.0000 DS, R
    South Park Township 42/7912 1.0000 1.0000 DS, R
    Susquehanna Township 42/8280 1.0000 1.0000 DS, R
    Tinicum Township 42/8445 1.0000 1.0000 DS
    Tredyffrin Township 42/8545 0.0000 0.0000 DS, R
    Warminster Township 42/8845 1.0000 1.0000 DS, R
    Wilkes-Barre 42/9340 3.0000 1.0000 DS, R
    York Township 42/9610 1.0000 1.0000 DS, R

    To calculate the biweekly Pennsylvania city income tax withholding, divide the yearly Pennsylvania city income tax withholding obtained in step 3 by the number of pay days in the tax year to get the annual Pennsylvania city income tax withholding.

    Navigate to thepage from the drop-down menu on the National Finance Center (NFC) Home page in order to view the most recent tax formula.To start the tax map, pick the tab and then select from the drop-down menu.Choose the chosen State from the map that has been supplied for the formula.Tax Bulletins from the past If you have any questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or through the customer service portals at ServiceNow Portal for Federated Users and ServiceNow Portal for Non-Federated Users, which are both located at servicenow.gov.

    Philadelphia, Pennsylvania nonresident Earnings Tax rates decrease effective July 1, 2021

    July 19, 20212021-1385Philadelphia, Pennsylvania nonresident Earnings Tax rates decrease effective July 1, 2021The City of Philadelphia announced that effective July 1, 2021, the Earnings Tax rate for nonresidents is 3.4481%, down from 3.5019%, and the rate for residents is 3.8398%, a decrease from the previous rate of 3.8712%.The Philadelphia Net Profits Tax (NPT), which is imposed on the net profits from the operations of a trade, business, profession, enterprise of other activity changes effective July 1, 2021, to 3.4481% for nonresidents and 3.8398% for residents.The Philadelphia School Income Tax (SIT), which applies to residents who receive certain types of unearned income, is 3.8398% for tax year 2021. This tax does not apply to nonresidents.For information concerning the requirements for withholding of the Earnings Tax in connection with COVID-19, see EY Tax Alert 2021-0957.———————————————Contact InformationFor additional information concerning this Alert, please contact: ———————————————ATTACHMENTEY Payroll News Flash

    Pennsylvania Paycheck Calculator

    • Quick Facts About Pennsylvania Paychecks Pennsylvania’s income tax rate is 3.07 percent
    • the median household income in the state is $64,910 (according to the United States Census Bureau)
    • The following number of municipalities and school districts levy local income taxes: 2,978.

    How Your Pennsylvania Paycheck Works

    It might be difficult to determine your take-home pay after taxes and other deductions have been made without the assistance of a paycheck calculator.In the first place, all Pennsylvania employers are required to deduct federal and state income taxes from your paychecks, along with Social Security and Medicare taxes.You may also be subject to state and local income taxes, depending on where you reside in the state.According to your income level and the withholding information that you provide on your Form W-4, the amount of federal income taxes that are withheld will vary.In recent years, the Internal Revenue Service (IRS) made significant changes to the W-4 form.A five-step method is used instead of allowances, and filers must prove and submit yearly dollar amounts for any extra income or occupations, as well as any other personal information, on the new form.

    In terms of FICA taxes, 6.2 percent of your gross income is allocated to Social Security contributions.Your employer is liable for matching this amount, bringing the total amount received by the government to 12.4 percent, which is used to support the program.Medicare taxes are collected in a similar manner, with 1.45 percent being taken from both you and your employer (if you are employed) (for a total of 2.9 percent ).

    Unless your income exceeds $200,000, you will be liable to an extra Medicare surtax of 0.9 percent on all of your earnings (your employer will not match this surtax).FICA (Federal Insurance Contributions Act) taxes are made up of two taxes: Social Security and Medicare taxes combined.If you are self-employed, you are responsible for paying the full amount of FICA taxes due to the federal government.Fortunately, there is a tax deduction that you may claim when you submit your taxes in order to lessen the burden of the high self-employment tax that you are subject to.

    1. It makes no difference whether you work for the Philadelphia International Airport or the University of Pittsburgh; your company withholds money from your paychecks in order to pay federal income taxes.
    2. These taxes are deducted from your paychecks throughout the year to help pay for a variety of government expenditures.
    3. The amount of federal income taxes deducted from your paychecks by your employer is determined by a variety of criteria, including your salary, marital status, and whether or not you want to have more tax withheld from your paychecks.
    4. Pennsylvania has a flat state income tax rate of 3.07 percent, which is the lowest in the nation.
    5. As a result, your state income tax rate will be unaffected by your income level or filing status at the federal level.
    6. Pennsylvania is one of just eight states that has a flat income tax rate, and it has the lowest rate of any of the states in which it is implemented.
    1. Your employer will withhold money to meet this state income tax in the same way that they do for federal income taxes.
    2. Local income taxes are also levied in more than 2,500 municipalities throughout Pennsylvania.
    3. In addition, 472 school districts in Pennsylvania collect a local income tax, out of a total of 500 school districts in the state.
    4. The rates of local income tax in some of the state’s most populous cities are included in the table below.
    See also:  How Long Does It Take To Process Federal Tax Return?

    You may learn more about taxes and how they relate to your overall financial objectives by consulting with a Pennsylvania financial expert.Financial advisers may also assist with investment and financial planning – covering retirement, housing, insurance, and other aspects of your financial life – to ensure that you are well prepared for your future financial needs.

    How You Can Affect Your Pennsylvania Paycheck

    You may have the most influence on your paycheck, and hence on your taxes, by fine-tuning them by electing to have an additional dollar withheld from each of your paychecks each month.On the W-4, there is a line where you may put the amount of excess withholding you would want to receive.So, for example, if you wanted your company to withhold an additional $20 from each paycheck, you would put ″20″ on the W-4 line corresponding to that request.Take note that, despite the fact that your paychecks may be slightly reduced each pay period, your tax bill may turn out to be a return come tax filing season.Pennsylvania, unlike the vast majority of other states in the United States, does not exclude contributions to 401(k), 403(b), and other retirement funds from income taxes and withholdings.However, after you reach retirement and begin receiving distributions, you will not be subject to income tax on any of your assets, including investment earnings.

    However, health savings accounts (HSAs) and flexible spending accounts (FSAs) continue to operate as normal.You make a pre-tax contribution in order to be able to use the money for specific medical-related expenditures down the road, such as copays.Keep in mind, though, that only $500 of an FSA’s funds can be carried over from one year to the next.

    That implies that if you make a contribution of more than $500 but do not utilize it before the end of the year, you will incur a financial loss.

    Business Income & Receipts Tax (BIRT)

    For company returns for the year 2021, the deadline is April 18th.The tax rate on gross revenues is 6.20 percent, while the tax rate on taxable net income is 6.20 percent.IMPORTANT UPDATE: Effective immediately, you must submit your online returns and payments for this tax through the Philadelphia Tax Center’s website.See our online tax center guide for assistance getting started as well as answers to frequently asked concerns.You have the option of continuing to file paper tax returns for this tax.

    Who pays the tax

    • 2021 company tax returns are due on April 18th. Rates of taxation on gross revenues are 6.20 percent, while rates of taxation on taxable net income are 6.20 percent Please complete online returns and payments for this tax on the Philadelphia Tax Center starting immediately. IMPORTANT UPDATE: Check out our online tax center guide for assistance with getting started and for typical tax questions. This tax can be filed on paper if you choose to continue doing so.

    It does not matter whether or not you make a profit in any of the instances outlined above; you must file a BIRT return in each case.If you have an active CAL but are not actively engaged in business, you must file a BIRT return and notify the City that no activity has happened during that period.If you fail to file your tax return, you will be issued a non-filer notice, and you may be subject to court costs.Businesses having taxable gross receipts in Philadelphia of $100,000 or less, on the other hand, are not obliged to submit a return.A No Tax Liability (NTL) form can be used instead if the taxpayer does not have any tax liability.The BIRT may be submitted and paid for entirely on the internet.

    With payments due in April 2018 for Tax Year 2017, taxpayers who owe $5,000 or more in BIRT taxes are obliged to pay their taxes electronically beginning with installments due in April 2018.If you need to make an amendment to a BIRT return, you must file a new tax return with the modified amount (s).In the box that shows that the form is an amended return, mark it with a ″X.″

    Important dates

    • The Business Income Tax Return (BIRT) must be filed and paid by April 15 of each year for business activity that occurred during the preceding calendar year. In addition, depending on when you started conducting business in Philadelphia, you may be required to pay an anticipated tax for the following year: In Philadelphia, if you file your first year’s BIRT return after beginning business operations in the city, you will not be required to pay anticipated tax for the following year.
    • The expected tax payment for the following year must be equal to 100 percent of the total amount of real tax from the previous year when you file your second year’s BIRT return in the following year. If you are submitting your second return, you may choose to pay your anticipated tax in quarterly payments payable on April 15, June 15, September 15, and January 15.
    • In all subsequent years, you must pay the full anticipated tax by April 15 of the year in question.

    Filing Extension

    Taxpayers who need more time to file their BIRT returns can ask for an extension.Depending on the circumstances, the Department of Revenue may grant you an extension of time to submit for a BIRT return of up to 60 days from the initial due date of the return.Upon receiving an extension of time for submitting your federal return from the Internal Revenue Service (IRS), you may apply to the Department of Revenue for a matching extension of time for filing your business income tax return (BIRT) up to the date on which the federal extension period ends.There is no special form to complete in order to request a BIRT extension.The IRS permits you to file your federal tax returns up to six months beyond the initial IRS due date if you apply for a federal extension.Please keep in mind that there are no tax payment extensions available at this time.

    Late payments are subject to interest and penalty charges if they are received after the initial due date.Taxpayer services at (215) 686-6600 will help you if you have an overpayment or tax credit that you do not want returned to you.You can request that the overpayment or credit be allocated to the tax period of your choosing.

    Tax rates, penalties, & fees

    How much is it?

    According to the most recent figures, the Business Income & Revenues Tax (BIRT) rates are 1.415% on gross receipts ($1.415 per $1,000), and 6.20 percent on taxable net income (before deductions).The rate on taxable net income in 2019 was 6.25 percent, according to the IRS.The BIRT is calculated on the basis of both gross receipts and net profit.Both components must be filed together.Because this is an entirely different tax from the Net Profits Tax (NPT), it is conceivable to be required to pay both the BIRT and the NPT in some circumstances.

    What happens if you don’t pay on time?

    Defaulting on your payments will result in the addition of interest and penalties to the amount you owe.More information about interest rates may be found on our Interest, penalties, and fees page.There are no extensions available for tax payments, but you can seek for a filing extension if you need more time to complete your return.Defaulting on your tax obligations may result in the suspension or revocation of your Commercial Activity License.Companies operating for profit in Philadelphia must obtain a valid Commercial Activity License in order to be able to conduct their operations.This implies that if you fall behind on your tax payments, we may halt your company activities until your account is brought up to speed.

    Discounts & exemptions

    Are you eligible for a discount?

    Exemptions

    Business Profits and Revenues Tax is exempt from the Business Income and Receipts Tax for the first $100,000 in gross receipts and a proportionate percentage of net income beginning with the tax year 2016.

    Tax credits
    • Some tax credits can be used to minimize the amount of BIRT that is owing to the municipality. Even if your company qualifies for tax breaks or exemptions, you must submit a Business Income Tax Return (BIRT) in order to avoid penalties. Sustainability Tax Credits, Healthy Beverage Tax Credits, Community Development Credits, Distressed Business Tax Credits, Green Roof Tax credits, Jobs Creation Tax credits, Keystone Opportunity Zones (KOZ), Life Partner and Transgender Care Health Benefits Tax Credits, Philadelphia Re-Entry Program (PREP), Sustainable Business Tax Credit, Veterans’ Employment Tax Credit are just a few of the tax credits that can be applied against the BIRT.

    For information on particular eligibility and filing requirements, please see the Tax Credits section of this website. You may also find a comprehensive listing of all credit programs on the City’s website, which is accessible through the Business Services Center.

    Economic presence (for tax years starting January 1, 2019 and thereafter)

    BIRT rules were updated to reflect the decision of the United States Supreme Court in South Dakota v.Wayfair, Inc., which was decided in June.Business with a physical presence in Philadelphia and subject to the BIRT if it earned at least $100,000 in Philadelphia gross receipts over any twelve (12) month period ending in the current year is considered to have a nexus in the city and is subject to the BIRT.Public Law 86-272 continues to be in effect for the purpose of calculating the tax on net income.

    Active presence (in effect through tax year 2018)

    Section 103 of the BIRT rules provide a description of what it means to ″conduct business″ in the city of Philadelphia. If your company satisfies certain regulatory requirements, it may be eligible for ″active presence″ tax treatment (i.e. the tax on gross receipts only).

    Can you be excused from paying the tax?

    • Only a small number of organizations are eligible for full exemptions. In general, entities that are excluded from submitting and paying the BIRT include: non-profits and religious groups
    • educational institutions
    • and government agencies.
    • People involved in a hobby or other non-profit activity as a pastime
    • Port-related activities
    • public utilities
    • transportation

    The preceding list is not exhaustive, and exclusions are made on the basis of the facts and circumstances unique to each firm in question.Make sure you are eligible for an exemption by reviewing the City’s Code and Revenue Department’s BIRT rules and regulations.Small businesses in Philadelphia that are in their first two years of existence may be excluded from paying BIRT under the program known as Jump Start Philly.Businesses that are in their first three years of existence may be excused from paying BIRT if they participate in the Sustainable Jump Start program.

    How to pay

    File and pay online

    The Philadelphia Tax Center accepts BIRT returns and payments, and it is open Monday through Friday. Having payments due in April 2018 for Tax Year 2017, taxpayers with a Business Income and Receipts Tax balance of $5,000 or more are obliged to pay those taxes online beginning with payments due in April 2018.

    File a return by mail

    Philadelphia Department of Revenue, P.O. Box 1660, Philadelphia, PA 19105-1660 is the address to send your return.

    Pay by mail

    All payments should be mailed to the Philadelphia Department of Revenue, P.O. Box 1393 Philadelphia, PA 19105-1393, along with a payment voucher.

    Request a refund by mail

    Returns and refund requests should be sent to the Philadelphia Department of Revenue, P.O. Box 1137, Philadelphia, PA 19105-1137.

    City of New Philadelphia, Income Tax Department

    The New Philadelphia Income Tax Department is in charge of administering the city’s income tax laws and regulations.In terms of revenue, income tax receipts are the city’s most important source of money for financing the city’s activities.Due to the fact that New Philadelphia is a required filing city, the personnel of the Income Tax Office are responsible for reviewing all municipal income tax returns filed by both individuals and corporations.In addition, the personnel give assistance to callers who have questions about their income tax obligations with the City of New Philadelphia.

    E-File Now Available

    New Philadelphia is a city in Pennsylvania that was founded in 1776.If your only source of income is a W-2 from your company or a 1099-Misc that is not connected with a Federal Schedule C, you may be able to file your taxes electronically.In case you have gambling or lottery profits that are not related with a Federal Schedule C, you should see an attorney.New Philadelphia is a city in Pennsylvania that was founded in 1776.If you are a new resident of New Philadelphia and this is your first time filing with the City of New Philadelphia, you will not be able to e-file your taxes and will be required to submit a New Philadelphia form.You are a non-resident who want to obtain a refund.

    You are submitting an application for a business license.If you have any federal schedules associated with your return (including, but not limited to, the following:o Federal Schedule C (self-employment income) o Federal Schedule E (rental income)o Federal Schedule F (farming income)o Federal Schedule K-1 (business income), you should include them in your return (partnership investment) CLICK HERE If you meet the requirements to file electronically, you will need your Account Number to do so.

    General Tax Information

    • New Philadelphia residents who work outside the city and pay taxes to other municipalities are eligible for a 1.5 percent tax credit
    • the rate is 1.5 percent.
    • Estimated Tax Payments: If the amount payable as estimated taxes for the current tax year exceeds $200.00, the taxpayer is required to file a declaration of estimated taxes for the current tax year. The estimated tax payment forms are accessible on the right side of the page (Downloadable Documents)

     Who Needs to File?

    • Individual Income Tax Rate: 1.5 percent
    • Tax Credit: 1.5 percent credit for New Philadelphia residents who work outside of the city and pay taxes to other jurisdictions
    • Preparation of Estimated Tax Payments: If the amount payable as estimated taxes for the current tax year exceeds $200.00, every taxpayer is required to file a declaration of estimated taxes for the current tax year. The estimated tax payment forms are accessible on the right side of the page (Downloadable Documents).

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