Form PA-40_BOOK Pennsylvania Personal Income Tax Return Booklet (PA-40)

(R) Resident If you were a resident of Pennsylvania for all of 2012 fill in this oval You must report all income (losses) regardless of the source from which you earned received or realized the income (loss) = Joint ownership = Primary taxpayer shown first on the PA 40; (S) = Spouse; 1 0 90 80 70 60 50 40 30 20 10 1 Columns (a) through (f) 1 If you owe income tax on your PA tax return you must: 1 Is the individual a child of the claimant? For PA income tax purposes child includes the natural child adopted child or step child of a parent Child also includes a grandchild of a grandparent and a foster child of a foster parent Therefore you can claim a son or daughter a grandchild or a foster child as a dependent for PA Schedule SP if you can claim the child as a dependent on your federal income tax return 1 PA Taxable Income Enter your total PA Taxable Income 1 REVENUE PLACE 1 Union Dues Union dues assessments and initiation fees are allowable business expenses if: 2 Can the claimant claim the child as a dependent for federal tax purposes? 2 If you have an approved extension for filing your federal income tax return and you do not owe PA income tax on your 2012 tax return the department will grant you the same extension for filing your PA tax return You do not have to submit a PA Form REV 276 or federal Form 4868 before the due date 2 REVENUE PLACE 2 Work Clothes and Uniforms The costs of purchasing and maintaining uniforms and work clothing to protect you from bodily injury are allowable business expenses if the uniforms and clothing are both: 3 REVENUE PLACE 3 Small Tools and Supplies Expenditures for small tools and supplies that your employer does not provide but you must have to perform the duties of your job are allowable business expenses Depreciation is the annual deduction you must take to recover the cost of business property having a useful life beyond the taxable year If any of these tools or supplies has a useful life of more than one year you depreciate or amortize the cost in Part G See the Depreciation PA Limitations instructions begin ning on Page 9 for more information 4 or 6 4 Taxable Distributions from C Corporations As a shareholder in a C corporation you must report as taxable gain the excess of the fair market value of a distribution (other than a dividend) in excess of current or accumulated earnings and profits over your adjusted basis of your stock You must decrease the basis of your stock or shares but not below zero by any distribution that is not taxable as a dividend on Line 3 of your PA 40 EXAMPLE: B Corp distributes from its capital account $100 000 to Karen the only stockholder Her adjusted basis in her stock is $75 000 The distribution is not from the C corporation s earnings and profits so it is not a taxable dividend Karen must reduce her basis from $75 000 to zero She reports $100 000 on the Enter total distribution line and $75 000 on the Minus adjusted basis line She reports the remaining $25 000 as a gain on Line 4 of her PA Schedule D 6 Vehicle Expenses: Standard Mileage Rate Enter the amount from your federal Form 2106 or federal Form 2106 EZ Otherwise enter your business miles and the federal mileage allowance Then calculate your allowable business mileage expense A discharge of indebtedness unless specifically exclud able from taxable income (Classify) Accounted for your allowable expenses to your employer and your employer reimbursed you in the exact amount of your expenses Alimony All distributions (regardless of the distribution code reported in Box 7 of the 1099 R) from the State Employees Retirement System the Pennsylvania School Employees Retirement System the Pennsyl vania Municipal Employees Retirement System and the U S Civil Service Commission Retirement Disability Plan All other lines All other required PA schedules and forms including Amounts from PA Worksheets REV 998 and REV 999 Any payments received from other persons outside your household including nontaxable cash or property received for personal use such as cash received from a parent to buy clothing or gifts from grown children Do not include monies paid pursuant to a cost sharing arrangement B If both Late Payment Penalty and Interest and Estimated Bank deposits Bonds (except as exempted below) Boxes 10 and 11 If there is state withholding noted in Box 10 of the 1099 R and the state indicated in Box 11 is PA report the amount of PA tax withheld on PA Schedule W 2S in Part B breaking a lease; house hunting; Bribes kickbacks or other illegal payments BUREAU OF INDIVIDUAL TAXES Business gifts must be ordinary necessary reasonable and actually incurred for business purposes Pennsylvania does not follow federal percentage limits on such expenses Call 717 787 8201 for PA personal income tax help during normal business hours 7:30 a m to 5 p m Call: 717 772 9347 Capital expenditures CAUTION: Distributions from a commercial insurance or mutual company annuity purchased as a retirement annuity are not distributions from an eligible Pennsylvania retirement plan and are taxable as interest income to the extent they are included in federal gross taxable income See Annuities Life Insurance or Endowment Contracts on Page 14 and the instructions for PA Schedule W 2S beginning on Page 25 for additional information Certificates of deposit Charitable contributions Check all the entries from Form(s) W 2 and schedules? Check your math? Child support Childcare or elderly care expenses Civil Service Annuity Code 1 & 2 Early Distribution This distribution is taxable for PA purposes unless: (1) your pension or retirement plan was an eligible plan for PA tax purposes and (2) you retired after meeting the age conditions of the plan or years of service conditions of the plan If your plan was not an eligible plan or if you have not attained the age or years of service Commuting expenses Complete and submit a PA Schedule W 2S unless the original Form W 2 is required to be included with your return as described above Damage awards and settlements from physical injury or sickness such as pain and suffering or emotional distress Deceased (D) 8 Filing Your 2012 PA Tax Return 5 Forfeited Interest Penalty 14 Foreign Address Instructions 6 Form PA V (Payment Voucher) Instructions 23 Forms Ordering Services 3 Gain From Installment Sales 31 Gambling And Lottery Winnings Line 8 18 Governor Robert P Casey Memorial Organ And Determine whether your property was either I or II and follow the appropriate instructions: Distributions from an employer sponsored deferred compensation plan that represent your previous contributions Distributions If you withdrew from your retirement or pension plan and received a Form 1099 R you may have PA taxable compensation if: Dividends distributed by a corporation to its stockholders DO NOT: Educational expenses except as allowed in Part F El Departamento de lmpuestos puede ayudar los contribuyentes que no hablan ingl s por medio de un servicio de traducci n durante el periodo de pago de impuestos Eligible Employer Sponsored Retirement Plans Pennsylvania does not impose income tax on payments you receive that are commonly recognized retirement benefits distributed from eligible employer sponsored retirement plans Eligible employer sponsored retirement plans can but do not necessarily include employer sponsored deferred compensation plans; pension or profit sharing plans; 401(k) plans; thrift plans; thrift savings plans; and employee welfare plans Ask your employer or plan administrator if your employer s retirement plan is an eligible plan for PA income tax purposes Eligible non employer sponsored retirement plans can but do not necessarily include Individual Retirement Accounts (IRAs) and Roth IRAs Employer paid group term life insurance premiums Enter your Social Security number(s)? Expenses calculated at federal per diem rates Expert witness fees (Line 1a) Federally taxable punitive damages received for personal physical injury or physical sickness whether received by suit or by settlement Final Return (F) 8 From installment sales on PA Schedule D 1; and Gives a state tax refund to some taxpayers; and H Health Savings Account contribution deduction; HARRISBURG PA 17128 0504 HARRISBURG PA 17128 0507 HARRISBURG PA 17129 0001 HARRISBURG PA 17129 0002 HARRISBURG PA 17129 0003 Honoraria (Line 1a) I If your property was income producing property such as stock bonds an ownership interest in a business a rental property a patent or copyright or you held your property in connection with a business profession or occupation (but not inventory or an operational asset) then: If each realizes a net profit gain or income add the net income amounts together and report that total on the appropriate line If one spouse has a net profit income or gain and the other spouse has a net loss report only the net income on the appropriate line Do not take into account the spouse s loss If the PA taxable wages you are reporting are less than the amount reported on your Form W 2 please include a brief explanation of the difference with your return and/or a letter from your employer documenting the difference in taxable amounts If you have Internet access you can find answers to commonly asked questions by using the department s Online Customer Service Center Use the Find an Answer feature to search the database of commonly asked questions If you do not find your answer in this area you can submit your question to a customer service representative If you rolled over the entire withdrawal directly (trustee to trustee) from one traditional IRA to another traditional IRA or If you rolled over the entire withdrawal directly (trustee to trustee) from the traditional IRA to the Roth IRA or If your employer withholds excess PA personal income tax at your request include with your return a statement from your employer verifying the rate and amount of tax withheld for the tax year including the vow to Hire Heroes Act and the Middle Class Tax Relief and Job Creation Act contained no provisions applicable for or that may be used in calculating PA personal income tax liabilities Any provisions provided in the afore mentioned acts to defer income or accelerate deductions must be reversed for PA personal income tax purposes Interest bearing personal checking accounts Interest for Nonpayment or Late Payment If you do not pay the tax due on or before the due date PA law imposes interest from April 15 2013 to the date of payment at the annual interest rate that the U S Secretary of the Treasury establishes as of January 1 of each calendar year Job hunting or other pursuit of employment expenses Jury fees (Line 1a) Land and buildings; Life disability income and health insurance premiums Limited IRC Section 179 The maximum deduction that PA income tax law permits using IRC Section 179 is $25 000 If you have income (loss) from more than one business profession or farm you may not deduct more than a total of $25 000 of IRC Section 179 expenses for all activities The PA Line # Line # (where applicable) Line i Add Lines a through h Line j Calculate the percentage of your property Line k Apportioned Expenses Multiply Line i by M Medical Savings Account contribution deduction; Make a copy of your PA tax return for your records? Married and lived together; or Married Filing Jointly (J) 7 Married Filing Separately (M) 8 Military pension benefits Moving expenses except when allowed in Part E moving for your own convenience; NO PAYMENT OR NO REFUND Non English speaking taxpayers can receive assistance from the department through an interpretation service Nonresident (N) 7 Not adaptable to general usage NRK 1 Line # number rural route floor etc on the first line Obligations of other states and countries Obligations of other states or countries Other deposits investments and obligations Other Differences You must adjust your federal expense for the difference between your federal depreciation and your depreciation for PA PIT purposes when you elect a different generally accepted method that you consistently use IMPORTANT: The basis for property (where bonus depreciation or IRC Section 179 in excess of $25 000 has been taken for federal income tax purposes) will be different for federal and state tax purposes As a PA 40 Reporting PA 40 Reporting Schedule and PA DEPARTMENT OF REVENUE PA DEPT OF REVENUE PA DEPT OF REVENUE PA DEPT OF REVENUE PA DEPT OF REVENUE PA Schedule PA Schedule A 30 PA Schedule B 30 PA Schedule D 31 PA Schedule E 32 PA Schedule J 33 PA Schedule O 33 PA Schedule OC 20 PA Schedule SP 34 PA Schedule T 33 PA Schedule UE 26 PA Schedule W 2S 25 PA Schedules G R G S & G L 20 PA Schedules RK 1 and NRK 1 15 Paid to the estate or designated beneficiary of the participant because of the participant s death Part Year Resident (P) 7 Resident Credit Line 22 20 Pay by check with a timely Application for Extension of Time to File (PA Form REV 276); or Pay by credit/debit card at www officialpayments com to pay by credit card over the Internet You may also pay with a credit card by calling 1 800 2PAYTAX (1 800 272 9829) You do not need to mail a PA Form REV 276 This option is not available if you never filed a Pennsylvania personal income tax return or made an estimated payment prior to making the request for the extension and payment via this method Pay by electronic funds transfer (EFT) to have your extension payment deducted from your bank account Go to the Revenue e Services Center at www revenue state pa us to arrange an EFT payment You do not need to mail a PA Form REV 276; or PAYMENT ENCLOSED Payments paid to the estate or designated beneficiary upon an employee s death are not PA taxable income on the employee's final PA 40 or on the decedent s estate or trust PA 41 PA Fiduciary Income Tax Return or on the beneficiary s PA 40 Payments you receive after you qualify for retirement and retire Payments you receive that you rollover into another deferred payment program or retirement IRA but only when the transferred amounts are not taxable income for federal purposes Penalties for Not Filing or for Filing a Late Return PA law imposes a penalty if you do not file your return on or before the due date or the approved extended due date The penalty is 5 percent of the unpaid tax due for each month or fraction of a month PA law imposes this penalty unless you show reasonable cause for late filing The maximum penalty is 25 percent The minimum penalty is $5 The department may prosecute any person who attempts to evade or defeat his or her PA tax responsibility Penalties for Underpayment or for Late Payment If you do not pay the full amount of your tax due with your extension or your timely filed return PA law imposes a 5 percent underpayment penalty Personal living or family expenses PO BOX 280504 Political candidate or campaign contributions Proceeds from an insurance company demutualization Receipts from operating an oil gas or mineral interest as a business profession or farm or otherwise derived in the ordinary course of and from the operation of a business Receipts from the sale exchange or other disposition of rental royalty and similar property; and Received including lump sum distributions on or after reaching the age of 591/2 REFUND OR CREDIT REQUESTED Resident (R) 7 Savings and loan associations Schedule A Line 7 Schedule B Line 4 Schedule E Line 22 Schedule G L Schedule J Schedules OC or G L securing lodging prior to moving; See (1) below See (2) below seeking new employment; selling or purchasing a house; Send e mail to: pataxadvocate@pa gov Separated but not by a written separation agreement Also fill in the correct oval for your specific filing condition Separated pursuant to a written separation agreement Married means: Severance pay (Line 1a) Single (S) 7 State federal and local tax refunds Stocks and bonds; Submit your actual state copy of Form(s) W 2 Report your PA compensation and withholding from each 2012 Form W 2 from each employer Enter your PA taxable compensation from Box 16 of your 2012 Form(s) W 2 Do not use Box 1 Federal Wages Report your PA income tax withheld from Box 17 of each Form W 2 on Line 13 of your PA 40 Do not report federal income tax withheld or income Subtract Column (e) from Column (d) Enter either the gain or the loss or zero in Column (f) Such payments are a condition of continued membership in the union and membership is related directly to your present job; or Support you receive from a spouse or former spouse T Tuition Account Program contribution deduction; or C Combined deduction from two or all three contribution deductions You must also complete PA Schedule O and/or include the information required for each contribution as discussed in the specific instructions below The total deductions you claim cannot reduce your taxable income below zero The department s PA PIT Guide has information that explains Pennsylvania s income tax and its differences from federal rules You can only access the PA PIT Guide at the department s website You can open specific chapters of the PA PIT Guide and use the search features of Adobe Acrobat Reader to find additional information on PA personal income tax rules The department offers a link for free download of the Adobe Acrobat Reader The dependent is not your child as defined above; The residence of a person in a nursing home long term care facility or similar facility is presumed to be the person s residence prior to becoming a patient in the home or facility unless there is substantial evidence that the person is legally competent and does not intend to return to his/her previous home The value of government education grants The value of the personal use of employer owned or leased property This is the location for all the department s electronic filing services Through this website you can: file returns using padirectfile; request an extension of time to file; make payments including estimated payments; check the status of your return and refund; update your address; calculate penalty and interest; pay tax due by electronic funds withdrawal for PA personal income taxes; and find a link to pay by credit/debit card This line serves taxpayers without touch tone telephone service Unemployment compensation and public assistance United Mine Workers Pension Verify that your name(s) and address are correct? Write: PA DEPARTMENT OF REVENUE TAXPAYERS RIGHTS ADVOCATE LOBBY STRAWBERRY SQUARE PO BOX 280101 HARRISBURG PA 17128 0101 X Indicates there is no Estimated Underpayment Penalty due to Exception 2 or the Special Exception rules as indicated on the completed and included REV 1630 or the exception for farmers on the completed and included REV 1630A You can receive free assistance in preparing uncompli cated non business federal state and local income tax returns through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs Visit the department s website contact the department s nearest district office or call the Internal Revenue Service s toll free number (1 800 829 1040) for the location of assistance sites Taxpayers with modest incomes and older residents are urged to take advantage of these services You cannot claim the child on your federal tax return; You cannot submit a federal Schedule K 1 in lieu of PA Schedule J You may no longer submit federal Schedule B even if you do not have any Capital Gains Distributions and your amounts are exactly the same for Pennsylvania You may only submit a federal Schedule 2106 when your unreimbursed travel expenses are the same for Pennsylvania and you do not have any miscellaneous expenses and/or are not using federal per diem amounts for any overnight meals or incidental expenses You must separately show your share of any rental or royalty gain (loss) that you realize as a partner a shareholder of a PA S corporation or other entity You must use PA Schedules A and B Spouses must submit separate PA Schedules A and B unless all the income is joint income You received total PA gross taxable income in excess of $33 during 2012 even if no tax is due with your PA re turn; and/or your home Your retirement plan is not an eligible Pennsylvania retirement plan; or $100 001 $150 000 $59 $52 $44 $13 000 $13 250 $13 500 $13 750 $14 000 $14 250 $14 500 $14 750 $15 000 $15 250 $15 000 and less $8 $7 $6 $15 001 $30 000 $17 $14 $12 $150 001 $200 000 $76 $66 $57 $22 500 $22 750 $23 000 $23 250 $23 500 $23 750 $24 000 $24 250 $24 500 $24 750 $30 001 $50 000 $22 $19 $17 $41 500 $41 750 $42 000 $42 250 $42 500 $42 750 $43 000 $43 250 $43 500 $43 750 $50 001 $75 000 $30 $26 $23 $60 500 $60 750 $61 000 $61 250 $61 500 $61 750 $62 000 $62 250 $62 500 $62 750 $75 001 $100 000 $43 $37 $32 $79 500 $79 750 $80 000 $80 250 $80 500 $80 750 $81 000 $81 250 $81 500 $81 750 $98 500 $98 750 $99 000 $99 250 $99 500 $99 750 $100 000 $100 250 $100 500 $100 750 (D) Deceased (F) Final Return (For more information see Page 24 ) (J) Married Filing Jointly (M) Married Filing Separately (N) Nonresident If you were a nonresident of Pennsylvania for all of 2012 fill in this oval PA law taxes nonresidents on the income earned received or realized from Pennsylvania sources during 2012 See Page 40 of the instructions for more information (P) Part Year Resident If you moved into Pennsylvania during 2012 fill in this oval even though you were a PA resident at the end of 2012 If you moved from Pennsylvania during 2012 fill in this oval even though you were not a PA resident at the end of 2012 (S) Single > $200 000 03% (0 0003) of PA 40 Line 9 Total PA Taxable Income or $94 (Philadelphia) $83 (Allegheny) or $71 (PA) whichever amount is smaller 1 $16 000 $16 250 $16 500 $16 750 $17 000 $17 250 $17 500 $17 750 $18 000 $18 250 1 800 362 2050 1 888 PATAXES 1 Purchases of taxable items subject to Pennsylvania use tax including shipping & handling 1 REVENUE PLACE 1 You received more than $8 000 of taxable income that was not subject to PA withholding; 1010 CLEAR ST HARTMANNSTRASSE 7 103 S MERCER ST NEW CASTLE PA 16101 3849 1099 G PRINTING AND MAILING COST REDUCTIONS 11 Total Eligibility Income Add Lines 1 through 10 and enter the total If using Columns B and C add each column and enter the total on Line 11 Eligibility Income is the total amount of your PA taxable and nontaxable income that you use to determine your percentage of Tax Forgiveness 14 Total Business Travel Expenses Add Lines 6 or 10 and Lines 11 12 and 13 15 Total Miscellaneous Expenses Enter the total of the 16 Total Office or Work Area Expenses Add Lines k and l 2 Otherwise include interest: 2 Purchases of taxable services subject to Pennsylvania use tax 2012 Estimated Installment Payments Line 15 20 Adjusted PA Taxable Income Line 11 19 Amended Returns 38 Annuities Life Insurance Or 2012 STATE TAX CHANGES 2013 PA 40 PENNSYLVANIA PERSONAL INCOME TAX RETURN BOOKLETS 2013 PA Estimated Payment Requirements 215 560 2056 215 821 1860 PITTSBURGH 22 Include the total on Line 6 of your PA 40 23 Total Education Expenses Add Lines 20 21 and 22 24 Total Depreciation Expenses Enter the total of columns E and F 3 $35 000 $35 250 $35 500 $35 750 $36 000 $36 250 $36 500 $36 750 $37 000 $37 250 3 Amount of utilities expense from Schedules C E and/or UE subject to use tax 3 If you do not have an extension for filing your federal income tax return request an extension on PA Form REV 276 and file it in sufficient time for the department to consider and act upon it prior to the return due date 33 for when to include this schedule 4 Total taxable purchases and utilities expense 411 7TH AVE ROOM 420 PITTSBURGH PA 15219 1905 412 565 7540 42 PA 40 www revenue state pa us 425 MAIN ST JOHNSTOWN PA 15901 1808 44 E BROAD ST BETHLEHEM PA 18018 5998 448 W 11TH ST ERIE PA 16501 1501 5 $54 000 $54 250 $54 500 $54 750 $55 000 $55 250 $55 500 $55 750 $56 000 $56 250 5 Tax rate (0 07 Allegheny County 0 08 Philadelphia or 0 06 state) 0 535 CHESTNUT ST SUNBURY PA 17801 2834 570 963 4585 570 988 5520 6 Use tax: Multiply Line 4 by Line 5 610 270 1780 610 378 4401 610 619 8018 610 861 2000 6TH FL STE 602 419 AVENUE OF THE STATES CHESTER PA 19013 4451 7 $73 000 $73 250 $73 500 $73 750 $74 000 $74 250 $74 500 $74 750 $75 000 $75 250 7 Additional estimated use tax from Table 1 717 783 1405 JOHNSTOWN 724 656 3203 724 832 5283 8 Do not add subtract or take losses into consideration 8 Sales tax previously paid on any amount included on Lines 1 and 2 (up to 0 07 per item for Allegheny County 0 08 for Philadelphia or 0 06 state) 814 533 2495 814 871 4491 9 $92 000 $92 250 $92 500 $92 750 $93 000 $93 250 $93 500 $93 750 $94 000 $94 250 9 Total use tax liability Add Lines 6 and 7 then subtract Line 8 and enter the amount here and on Line 25 of your PA 40 Pennsylvania personal income tax return A business asset in a transaction that is not an ordinary or recurring business transaction; and/or A Business Profession Or Farm Line 4 15 Nonresident Partners And Shareholders 41 Nonresident Tax Withheld Line 17 20 Office Or Work Area Expenses 29 Other Business Travel Expenses 28 Other Credits Line 23 20 Overpayment Line 29 22 PA Breast Cancer Coalition s Breast And A dependent is a minor or adult child claimed as a dependent on a 2012 federal income tax return A distribution from a C corporation (other than a dividend) that exceeds your adjusted basis in that corporation Please see the instructions for Line 4 of PA Schedule D beginning on Page 31 A distribution from a partnership or PA S corporation (other than dividends) that represents a return of your investment in that entity You must determine if such a distribution results in a taxable gain by completing worksheets REV 998 or REV 999 These worksheets are available on the department s website A full time student who is a dependent on his/her parents federal income tax return cannot claim this credit regardless of his/her income unless his/her parents are eligible for Tax Forgiveness In this case the student claimant must file his/her own tax return and PA Schedule SP A grantor trust generally files a PA 41 The beneficiaries of the trust including the grantor if he/she receives income from the trust report the income as beneficiaries on their PA Schedules J A nonqualifying sale of your principal residence obtain PA Schedule 19 Sale of a Principal Residence A paid preparer must fill in this oval if the taxpayer requested to file a paper copy of the return instead of electronically transmitting the return If you are preparing your return yourself do not fill in this oval a payment with your return A taxpayer with a conversion of a traditional IRA to a Roth IRA (or vice versa) with distribution code 1 in Box 7 of the 1099 R may be eligible to report the amount as nontaxable income when a direct transfer from trustee to trustee oc curs and/or the when the entire distribution from the orig inal IRA account (including taxes withheld) is paid into the new IRA account within 60 days of the date of the distri bution In such cases input the same amount in Column F as reported in Column E If the distribution is not a direct transfer from trustee to trustee or the entire distribution is not paid into the new IRA account as a result of the con version of the original IRA account the distribution must be reported as two separate distributions on PA Schedule W 2S The distributions will be reported on separate lines of Column E with the net amount converted into the new IRA (gross distribution from Box 1 of the Form 1099 R less amounts not repaid into the new IRA account) being re ported as the first distribution and amounts not repaid into the new IRA account reported as the second distribution The amount reported in Column E for the first distribution will not be taxable (input the same amount in Column F as reported in Column E) The amount reported in Column E for the second distribution may be taxable since Column F will reflect the cost or adjusted basis of the IRA A taxpayer with a distribution code 2 on Form(s) 1099 R must determine if he/she received the distribution from a pension or retirement plan eligible for PA tax purposes Additionally the taxpayer must have been eligible by meeting the age or service conditions of the plan If these conditions are met the taxpayer should input the same amount in Column F as was reported in Column E Otherwise the cost or adjusted basis of the plan must be included A taxpayer with a distribution code 4 on Form(s) 1099 R should also include the amount in Box 1 in eligibility income for Schedule SP Special Tax Forgiveness pur poses The amount should be included in Part C Eli gibility Income of Schedule SP on Line 4 Insurance proceeds and inheritances A taxpayer with a distribution from an employee stock ownership plan (ESOP) should enter the amount of the distribution in Column G if the stock in the ESOP has not been allocated to the participants Use payment type H in Column B and the description Non Allocated ESOP Stock Dividend in the space to describe the payment If the stock has been allocated to the participants input the same amount in Column F as reported in Column E and enter payment type H in Column B and the description Al located ESOP Stock Dividend to describe the payment Allocated ESOP stock dividends are taxable as dividend income for PA purposes Enter the name of the company and amount of the distribution on Line 1 of PA Schedule B A taxpayer with distribution code 1 or 2 on Form(s) 1099 R from a retirement plan from the State Employees Retirement System the Pennsylvania School Employees Retirement System the Pennsylvania Municipal Employees Retirement System or the U S Civil Service Commission Retirement Disability Plan should input the same amount in Column F as was reported in Column E A taxpayer with distributions from an annuity purchased from a commercial insurance or mutual company an en dowment contract or a charitable gift annuity having a dis tribution code 7 in Box 7 of the 1099 R must record the distributions on PA Schedule W 2S and also report the amount of income taxable for federal income tax purposes as PA taxable interest income When recording the distri bution on PA Schedule W 2S input the same amount in Column F as reported in Column E Report the federal tax able amount of any annuities or endowments on Line 3 of PA Schedule A Report the federal taxable amount of any charitable gift annuities on Line 4 of PA Schedule A A taxpayer with distributions of excess contributions and earnings on the excess contributions (distribution code 8 in Box 7 of the 1099 R) must determine if the contributions being returned are from taxpayer contribu tions/deferrals or employer contributions In cases where the excess contributions being returned are taxpayer contributions/deferrals only the amount of excess contributions should be entered in Column F Earnings on the excess contributions should not be included in the adjusted basis of previously taxed contributions In cases where the excess contributions and earnings being returned are employer contributions no entry should be made in Column F In either case a letter from the employer/plan administrator is required to provide whether or not the contributions being returned are taxpayer contributions/deferrals and a breakdown between the excess contributions and the earnings on the excess contributions when the excess contributions and earnings are from employee contributions/deferrals Abatement of Penalties Abington 46030 Boyertown Area 06075 Bryn Athyn Borough 46050 Cheltenham Township 46130 Colonial 46160 Hatboro Horsham 46360 Jenkintown 46380 Lower Merion 46450 Lower Moreland Township 46460 Methacton 46530 Norristown Area 46560 North Penn 46570 Perkiomen Valley 46610 Pottsgrove 46630 Pottstown 46640 Souderton Area 46710 Springfield Township 46720 Spring Ford Area 46730 Upper Dublin 46830 Upper Merion Area 46840 Upper Moreland Township 46850 Upper Perkiomen 46860 Wissahickon 46930 Abington Heights 35030 Carbondale Area 35130 Dunmore 35220 Forest City Regional 58300 Lackawanna Trail 66500 Lakeland 35460 Mid Valley 35550 North Pocono 35650 Old Forge 35660 Riverside 35700 Scranton City 35740 Valley View 35840 ACDMY PLZ SHPG CTR 3240 RED LION RD PHILADELPHIA PA 19114 1109 ACRS and MACRS and IRC Section 179 Pennsylvania allows ACRS and MACRS and limited IRC Section 179 to the extent allowable under the version of ACT and Information Line at 1 888 PATAXES (728 2937) Active duty pay received as a member of the U S Armed Forces from the U S government for service outside Pennsylvania (see Page 37) activity from partnership and PA S corporation schedules You Actual Office or Work Area Expenses Actually paid while performing the duties of your employment; ADAMS Add any capital gains and distributions that you report on other federal schedules Add Lines 13 18 21 22 and 23 Add Lines 26 and 27 Or if the total of Line 12 plus Lines 25 and 27 is more than Line 24 add Lines 12 25 and 27 and subtract Line 24 You must pay the total due in full on or before April 15 2013 See the instructions for payment options beginning on Page 23 Add only Lines 14 15 16 and 17 Add only the positive income amounts from Lines 1c through Additional information regarding income and expenses required to be adjusted is available within the instructions for PA Schedules C and F and in the PA PIT Guide You may also visit the department's website at www revenue state pa us to obtain detailed information about federal and Pennsylvania differences and adjustments Address if the address on your Form PA V is not correct you may use your Form PA V The department will obtain your correct address from your PA tax return Advertising Affix only the correct label on the front of the envelope If you do not have a department provided envelope send your return to the address that applies to you after Dec 31 2012 Do not enter the school district where you work Using an incorrect code may affect your school district s funding The lists of school district names and codes are on Pages 42 and 43 NOTE: If you do not know the name of the school district where you resided on Dec 31 2012 you can obtain this information from the Online Customer Service Center at www revenue state pa us Albert Gallatin Area 26030 Belle Vernon Area 65060 Brownsville Area 26080 Connellsville Area 26130 Frazier 26290 Laurel Highlands 26400 Southmoreland 65750 Uniontown Area 26800 Alimony Enter the amount of federally taxable alimony that you receive Aliquippa Borough 04050 Ambridge Area 04070 Beaver Area 04120 Big Beaver Falls Area 04150 Blackhawk 04160 Central Valley 04200 Ellwood City Area 37200 Freedom Area 04285 Hopewell Area 04410 Midland Borough 04530 New Brighton Area 04565 Riverside Beaver County 04585 Rochester Area 04690 South Side Area 04740 Western Beaver County 04930 All amounts you receive from your employer's PA qualifying retirement or old age benefit plan are taxable in the year you receive the payments except: All other lines All other required documents including federal schedules (where the instructions allow the use of federal schedules) that explain the information you entered ALLEGHENY Allegheny Clarion Valley 16030 Apollo Ridge 03060 Armstrong 03085 Freeport Area 03305 Karns City Area 10360 Kiski Area 65440 Leechburg Area 03450 Redbank Valley 16800 Allegheny Clarion Valley 16030 Armstrong 03085 Clarion Area 16120 Clarion Limestone Area 16170 Keystone 16650 North Clarion County 16750 Redbank Valley 16800 Union 16900 Allegheny Clarion Valley 16030 Butler Area 10125 Freeport Area 03305 Karns City Area 10360 Mars Area 10500 Moniteau 10535 Seneca Valley 10790 Slippery Rock Area 10750 South Butler County 10780 Allegheny Clarion Valley 16030 Cranberry Area 61130 Forest Area 27200 Franklin Area 61220 Oil City Area 61620 Penncrest 20470 Titusville Area 61720 Valley Grove 61860 Allegheny Valley 02060 Avonworth 02075 Baldwin Whitehall 02110 Bethel Park 02125 Brentwood Borough 02145 Carlynton 02160 Chartiers Valley 02175 Clairton City 02190 Cornell 02210 Deer Lakes 02225 Duquesne City 02250 East Allegheny 02280 Elizabeth Forward 02315 Fort Cherry 63240 Fox Chapel Area 02391 Gateway 02410 Hampton Township 02460 Highlands 02475 Keystone Oaks 02500 McKeesport Area 02600 Montour 02630 Moon Area 02634 Mount Lebanon 02640 North Allegheny 02685 Northgate 02687 North Hills 02690 Penn Hills 02735 Penn Trafford 65710 Pine Richland 02100 Pittsburgh 02745 Plum Borough 02750 Quaker Valley 02775 Riverview 02820 Shaler Area 02830 South Allegheny 02865 South Fayette Township 02870 South Park 02875 Steel Valley 02883 Sto Rox 02885 Upper Saint Clair Township 02920 West Allegheny 02940 West Jefferson Hills 02955 West Mifflin Area 02960 Wilkinsburg Borough 02980 Woodland Hills 02990 Allentown City 39030 Bethlehem Area 48100 Catasauqua Area 39130 East Penn 39230 Northern Lehigh 39450 Northwestern Lehigh 39460 Parkland 39510 Salisbury Township 39560 Southern Lehigh 39570 Whitehall Coplay 39780 Allocating Income and Loss allowable business expenses If you receive a fixed mileage allowance or a per diem living expense allowance that does not exceed applicable federal limits you meet these requirements Do not report these expenses on PA Schedule UE Allowable employee business expenses for PA purposes are similar to but not the same as expenses for federal purposes PA law only permits expenses required to perform the duties of a job or profession Allowable Pennsylvania Employee Business Expenses Must Be: Allowances and reimbursements in excess of allowable employee business expenses (Line 1a) Also include the following on PA Schedule D: Altoona Area 07050 Bellwood Antis 07100 Claysburg Kimmel 07150 Hollidaysburg Area 07350 Spring Cove 07750 Tyrone Area 07800 Williamsburg Community 07900 Amended Return Amended Returns Amount amount from Line 9 of your PA 40 form Nontaxable Income On Lines 2 through 10 you must include income that you do not report as taxable on your PA return but PA law requires you to report for Tax Forgiveness purposes If you do not have an amount to report on Lines 2 through 10 enter zero Annualized income from each of the sources for Lines 2 through 10 should also be reported for decedents on the respective lines Amounts from PA Schedules D 1 D 71 RK 1 and NRK 1 An acceptable return has not been filed until all schedules required by the department have been filed Failing to provide required schedules may not only delay the processing of your return but also subject you to late filing penalties An exchange of a life insurance contract for another life insurance contract an endowment contract or an annuity contract; An exchange of an annuity contract for another annuity contract; An exchange of an endowment contract for an annuity contract; and An exchange of one endowment contract for another endowment contract if the dates for payments begin on or before the original contract s payment dates An underpayment penalty if you do not pay at least 90 percent of your 2012 tax due by April 15 2013; and the remaining balance with your PA return by the extended due date; and and children waiting to receive life saving organ transplants Just one donor can save or enhance the lives of up to 50 people Donating an organ is truly giving the gift of life Each year many Pennsylvanians are fortunate to receive transplanted organs that save their lives You can help this vital effort by contributing all or a portion of your Pennsylvania tax refund to support educational programs that encourage people to become organ and tissue donors and g and help protect Pennsylvania's non game and its political subdivisions IMPORTANT: You may not use any loss realized on the disposition of the above obligations to offset other gains AND PA S CORPORATION PARTNERS AND PART YEAR RESIDENTS and verify your 2012 PA estimated payments and carryover Annuities Annuities Life Insurance or Endowment Contracts Annville Cleona 38030 Cornwall Lebanon 38130 Eastern Lebanon County 38230 Lebanon 38460 Northern Lebanon 38500 Palmyra Area 38530 Antietam 06050 Boyertown Area 06075 Brandywine Heights Area 06085 Conrad Weiser Area 06110 Daniel Boone Area 06150 Exeter Township 06200 Fleetwood Area 06250 Governor Mifflin 06300 Hamburg Area 06350 Kutztown Area 06400 Muhlenberg Township 06550 Oley Valley 06650 Reading 06700 Schuylkill Valley 06750 Tulpehocken Area 06800 Twin Valley 06810 Upper Perkiomen 46860 Wilson 06910 Wyomissing 06935 any additional sheets you prepared IMPORTANT: Please include your name(s) Social Security number(s) tax year and a brief line reference to the PA 40 or PA 40 schedule for any additional sheets you include with your return Any amount paid out of an Archer Medical Savings Account or Health Savings Account that is includable in the gross income of an account beneficiary for federal income tax purposes Included in this category are distributions used for any purpose other than to pay qualified medical expenses any amount considered to be excess contribution distributions not previously included in income or any amount of the account s income attributable to excess contributions Apollo Ridge 03060 Armstrong 03085 Blairsville Saltsburg 32110 Harmony Area 17350 Homer Center 32330 Indiana Area 32370 Marion Center Area 32520 Penns Manor Area 32630 Punxsutawney Area 33800 Purchase Line 32730 United 32800 applicable Eligibility Income Table in Part D IMPORTANT: There is no advantage to filing separately because married claimants must report their Joint Eligibility Income on PA Schedule SP You must include your spouse s SSN if filing separate APPLICATION OF OVERPAYMENT Apportioning Income and Loss on PA Schedule NRH area depreciation ARMSTRONG Arrange your documents in the following order when sub mitting your 2012 PA tax return: As a beneficiary of an estate or trust you report the total PA taxable income that the estate or trust must distribute pay or credit to you on PA Schedule J You cannot report a loss as a beneficiary for PA purposes As a beneficiary of an estate or trust you should receive a PA Schedule RK 1 and/or NRK 1 Report the total income that you received or that the estate or trust credited to you For PA income tax purposes an estate or trust cannot distribute a loss As a nonresident you do not pay PA income tax on ordinary interest ordinary dividends and any gain you realize on the sale exchange or disposition of intangible personal property such as stocks and bonds You cannot use the loss from such sales against other taxable gains As a nonresident you may allocate income (loss) from a busi ness when you maintain separate PA books and records You must allocate income (loss) from real or tangible property located within Pennsylvania You must allocate gain (loss) from the sale exchange or disposition of real or tangible property located within Pennsylvania You allocate income (loss) from rental property royalties patents and copyrights located within Pennsylvania You allocate winnings from gambling and lotteries from Pennsylvania sources As a nonresident you may apportion income that you earn both within and outside Pennsylvania You apportion your PA taxable compensation when your employer does not separately report your PA wages on your Form W 2 You must apportion income (loss) from operating a business within and outside Pennsylvania unless you maintain separate books and records that clearly substantiate your PA source receipts expenses liabilities etc As a nonresident you must report net income (and pay the PA income tax due) or loss from the sale of real or tangible property located within Pennsylvania See Page 16 of the instructions for more information As a nonresident you must report the net income (and pay the PA income tax due) you receive as a beneficiary of an estate or trust as reported to you on PA Schedule NRK 1 See Page 18 of the instructions for more information As a nonresident you must report your net income (and pay the PA income tax due) or loss from rental property located in Pennsylvania and income from royalties patents and copyrights for the use of your property in Pennsylvania See Page 17 of the instructions for more information As a nonresident you must report your net profit (and pay the PA income tax due) or loss on your net profits from business or farm operations See Page 15 of the instructions for more information As a nonresident you must report your winnings from gambling and lotteries in Pennsylvania but not prizes awarded by the Pennsylvania Lottery See Page 18 of the instructions for more information As a nonresident you pay PA income tax on compensation for services you perform in Pennsylvania Your PA employer should report and withhold PA tax from the exact amount of your PA taxable compensation If your employer does not report or incorrectly reports your PA taxable compensation you must use PA Schedule NRH to apportion your compensation and any allowable employee business expenses as stock if the distribution is not personal income for federal purposes Assembling Your PA 40 at www revenue state pa us or order a 2012 PA Fast File booklet from one of the Forms Ordering Services on Page 3 Athens Area 08050 Canton Area 08100 Northeast Bradford County 08300 Sayre Area 08600 Towanda Area 08650 Troy Area 08665 Wyalusing Area 08900 Austin Area 53030 Coudersport Area 53130 Galeton Area 53280 Keystone Central 18360 Northern Potter 53550 Oswayo Valley 53750 Port Allegany 42630 Automated 24 hour Forms Ordering Message Service: Automobile and travel Deduct ordinary and necessary auto and travel expenses related to your rental activities including 100 percent of meal expenses incurred while traveling away from home Pennsylvania differs from federal treatment on the meals and entertainment expense You generally can either deduct your actual expenses or take the standard federal mileage rate Avella Area 63050 Bentworth 63090 Bethlehem Center 63100 Brownsville Area 26080 Burgettstown Area 63120 California Area 63150 Canon McMillan 63170 Charleroi 63180 Chartiers Houston 63190 Fort Cherry 63240 McGuffey 63390 Peters Township 63650 Ringgold 63700 Trinity Area 63800 Washington 63880 Avon Grove 15050 Coatesville Area 15190 Downingtown Area 15200 Great Valley 15350 Kennett Consolidated 15400 Octorara Area 15650 Owen J Roberts 15660 Oxford Area 15670 Phoenixville Area 15720 Spring Ford Area 46730 Tredyffrin Easttown 15780 Twin Valley 06810 Unionville Chadds Ford 15850 West Chester Area 15900 Awards and gifts given in recognition for or given as a transfer of cash or property in payment for past present or future service as an inducement to perform future services (Line 1a) Awards and gifts made from detached or disinterested generosity Bald Eagle Area 14100 Bellefonte Area 14110 Keystone Central 18360 Penns Valley Area 14700 Philipsburg Osceola Area 17700 State College Area 14800 Tyrone Area 07800 Bangor Area 48080 Bethlehem Area 48100 Catasauqua Area 39130 BEAVER BEDFORD Bedford Area 05100 Chestnut Ridge 05150 Claysburg Kimmel 07150 Everett Area 05300 Northern Bedford County 05600 Tussey Mountain 05800 Before you sign your return did you: beginning on Page 25 Beginning with tax year 2013 (2014 filing season) the department will no longer print and mail PA 40 booklets to taxpayers unless specifically requested to do so The department encourages tax payers to file electronically or use the free forms and instructions available at www revenue state pa us The department will continue to make available upon request the PA 40IN Instruction Booklet and preprinted forms; see Forms Ordering Services on Page 3 for information on obtaining forms from the department Belle Vernon Area 65060 Blairsville Saltsburg 32110 Burrell 65070 Derry Area 65160 Franklin Regional 65260 Greater Latrobe 65310 Greensburg Salem 65320 Hempfield Area 65380 Jeannette City 65410 Kiski Area 65440 Leechburg Area 03450 Ligonier Valley 65490 Monessen City 65580 Mount Pleasant Area 65590 New Kensington Arnold 65630 Norwin 65650 Penn Trafford 65710 Southmoreland 65750 Yough 65890 BENEFITS OF ELECTRONICALLY FILING YOUR RETURN Bensalem Township 09100 Bristol Borough 09130 Bristol Township 09135 Centennial 09200 Central Bucks 09210 Council Rock 09235 Easton Area 48330 Morrisville Borough 09720 Neshaminy 09750 New Hope Solebury 09760 North Penn 46570 Palisades 09800 Pennridge 09810 Pennsbury 09820 Quakertown Community 09840 Souderton Area 46710 Benton Area 19100 Berwick Area 19110 Bloomsburg Area 19120 Central Columbia 19150 Millville Area 19500 Mount Carmel Area 49510 North Schuylkill 54500 Southern Columbia Area 19750 BERKS Berlin Brothersvalley 56100 Conemaugh Township Area 56180 Meyersdale Area 56520 North Star 56550 Rockwood Area 56630 Salisbury Elk Lick 56700 Shade Central City 56720 Shanksville Stonycreek 56740 Somerset Area 56770 Turkeyfoot Valley Area 56840 Windber Area 56910 Bermudian Springs 01110 Conewago Valley 01160 Fairfield Area 01305 Gettysburg Area 01375 Littlestown Area 01520 Upper Adams 01852 Berwick Area 19110 Crestwood 40140 BETHLEHEM Big Spring 21050 Camp Hill 21100 Carlisle Area 21110 Cumberland Valley 21160 East Pennsboro Area 21250 Mechanicsburg Area 21650 Shippensburg Area 21800 South Middleton 21830 West Shore 21900 Blackhawk 04160 Ellwood City Area 37200 Laurel 37400 Mohawk Area 37500 Neshannock Township 37520 New Castle Area 37530 Shenango Area 37620 Union Area 37700 Wilmington Area 37800 Blacklick Valley 11060 Cambria Heights 11120 Central Cambria 11130 Conemaugh Valley 11140 Ferndale Area 11200 Forest Hills 11220 Glendale 17300 Greater Johnstown 11250 Northern Cambria 11450 Penn Cambria 11600 Portage Area 11630 Richland 11650 Westmont Hilltop 11850 Windber Area 56910 BLAIR Blue Mountain 54080 Hazleton Area 40330 Mahanoy Area 54450 Minersville Area 54470 North Schuylkill 54500 Panther Valley 13660 Pine Grove Area 54600 Pottsville Area 54610 Saint Clair Area 54680 Shenandoah Valley 54720 Schuylkill Haven Area 54730 Tamaqua Area 54760 Tri Valley 54780 Williams Valley 54880 Blue Ridge 58100 Elk Lake 58250 Forest City Regional 58300 Montrose Area 58450 Mountain View 58460 Susquehanna Community 58650 Bonus Depreciation PA PIT law does not follow the federal allowances for additional depreciation expenses You may not use any of the bonus depreciation elections enacted for federal purposes Both individuals must sign the form This form can be sent to the address shown on the form prior to filing the return or a copy of the form can be submitted with both returns when filing This avoids processing delays and correspondence from the department Boxes 8 or 9b Distributions listed in these boxes are distributions from an insurance policy or annuity purchased for your retirement Such distributions are not taxable if: (1) your insurance policy or annuity was from an eligible plan for PA tax purposes; and (2) you retired after meeting the age or years of service conditions of such eligible plan If you do not meet these requirements the taxation of your distributions must be determined under the cost recovery method See Page 10 for additional information This distribution is taxable as interest on PA Schedule A not as compensation on Line 1a BRADFORD Bradford Area 42080 Kane Area 42230 Oswayo Valley 53750 Otto Eldred 42600 Port Allegany 42630 Smethport Area 42750 Breakage fees or cash shortages you must pay to your employer; brochure (REV 611) from the department s website or Brockway Area 33070 Brookville Area 33080 Clarion Limestone Area 16170 Dubois Area 17200 Punxsutawney Area 33800 Brockway Area 33070 Forest Area 27200 Johnsonburg Area 24350 Kane Area 42230 Ridgway Area 24600 Saint Marys Area 24800 BUCKS BUREAU OF INDIVIDUAL TAXES business do not use PA Schedule E You must report net income (loss) from rentals of real estate held for sale to customers in the ordinary course of your real estate sales and/or from your business of renting other personal property on PA Schedule C See Reporting Rental Income (Loss) as Business Activity on Line 4 or as Rents on Line 6 on Page 16 for additional information Business Expenses Line 1b 13 Use Tax Responsibility 21 What Is Tax Forgiveness? 34 Who Is Eligible For Tax Forgiveness? 34 Who Must File A PA Tax Return? 5 Wild Resource Conservation Fund 41 Work Clothes And Uniforms 27 Business Profession or Farm Page 15 Line 5 Net Gain or Loss from the Sale Exchange or Disposition of Property Page 16 Line 6 Net Income or Loss from Rents Royalties Patents business purposes BUTLER By law (42 U S C 405(c)(2)(C)(i); 61 Pa Code 117 16) the Pennsylvania Department of Revenue has the authority to use the SSN to administer the Pennsylvania personal in come tax and other Commonwealth of Pennsylvania tax laws The department uses the SSN to identify individual taxpayers and verify their incomes The department also uses the SSN to administer tax offset and child support programs required by federal and Pennsylvania laws The commonwealth may also use the SSN in exchange of tax information agreements with governmental authorities Pennsylvania law prohibits the commonwealth from disclosing information that individuals provide on income tax returns including the SSNs except for official purposes Calculate your Line 11 amended total PA taxable income Calculate your Line 12 amended PA tax liability Calculate your Ta x Forgiveness Credit using the CAMBRIA CAMERON Cameron County 12270 can use TeleFile visit the department's website CANADA GERMANY Canton Area 08100 East Lycoming 41200 Jersey Shore Area 41400 Loyalsock Township 41420 Montgomery Area 41500 Montoursville Area 41510 Muncy 41530 South Williamsport Area 41610 Southern Tioga 59700 Wellsboro Area 59850 Williamsport Area 41720 Canton Area 08100 Galeton Area 53280 Northern Tioga 59600 Southern Tioga 59700 Wellsboro Area 59850 Capital Gains Distributions Capital Gains Distributions Capital gains distributions are taxable as dividend income on Line 3 Do not report capital gains distributions on PA Schedule D CARBON Carmichaels Area 30130 Central Greene 30140 Jefferson Morgan 30350 Southeastern Greene 30650 West Greene 30850 Cash received for personal use from outside your home Include on Line 10 the following kinds of nontaxable income when determining your Eligibility Income: Cash reimbursements for personal expenses such as commuting and day care (Line 1a) CAUTION: Although you may not have income taxable as compensation due to the code reported in Box 7 of the 1099 R you may have taxable income from distributions reported on 1099 R Forms bearing code 6 or F which are reported on PA Schedule D See the PA PIT Guide Chapter 12 and the instructions for PA Schedule D found on Pages 31 and 32 for additional information CAUTION: An extension of time for filing will not extend the time for paying the tax CAUTION: Certain utilities which are not subject to sales and use tax when purchased exclusively for resi dential use become subject to sales and use tax when used for commercial purposes Commercial purposes in cludes rental property owned by an individual and held out for rent by another individual or business Exceptions include properties with separate metering for rental units and common areas where the common area utilities is included as used for commercial purposes and the rental unit property is residential rental property when the utili ties are paid for by the tenants If you are including elec tricity natural gas fuel oil or kerosene in your calculation of utilities expense and the property is not listed as com mercial property with the utility company or as a commer cial entity with the fuel oil or kerosene supplier you should report use tax due on the related expense amounts for these utility expenses on Line 25 of the PA 40 CAUTION: Certain utilities which are not subject to sales and use tax when purchased exclusively for residential use become subject to sales and use tax when used for commer cial purposes If you are including electricity natural gas fuel oil or kerosene in your calculation of home office expense you should report use tax due on the prorated expense amount on Line 25 of the PA 40 CAUTION: Do not report any medical insurance premiums or itemized medical expenses from federal Schedule A on this line CAUTION: For taxpayers reporting the sales of exempt CAUTION: Generally PA law follows IRC Section 280A if you rent or lease your property but do not intend to realize a profit Therefore your rental expenses are limited to your rental income and you may not use a loss If you rent or lease your property to realize a profit read the description of Reporting Rental Income (Loss) as Business Activity on Line 4 or as Rents on Line 6 on Page 16 to determine if you have a business activity that you should report on PA Schedule C CAUTION: If federal tax is withheld from a rollover distribution the amount of federal tax withheld must also be reimbursed into the new IRA account in order for the rollover to be con sidered nontaxable for PA PIT purposes See Filing Tips on Page 26 for additional information CAUTION: If you are a resident of a reciprocal state and have PA taxable income in classes other than compensation (see also Resident of a Reciprocal State Filing for a Refund on Page 11) you must include all your nontaxable income (including the compensation not taxable to Pennsylvania as a resident of a reciprocal state) earned outside Pennsylvania on Line 6 of PA Schedule SP CAUTION: If you cannot or do not file a federal Form 2106 or federal Form 2106 EZ you may follow the federal rules for determining your allowable expenses except as previously noted If using one of the federal Forms 2106 you must itemize Line 4 "Business Expenses" from these forms in Part C of PA Schedule UE CAUTION: If you do not provide the required schedules the department will need to request the missing information Failing to provide schedules that the department requires will delay the processing of your tax return and therefore delay the initial date your return is considered to be complete CAUTION: If you filed late or did not pay your Pennsylvania income tax on time the department will calculate your penalty and interest and issue a notice If any part of any underpayment of the tax is due to fraud PA law imposes a penalty of 50 percent of the underpayment CAUTION: If you receive distributions of previously taxed contributions from a nonqualified deferred compensation plan you should complete and include with your return the PA 40 W 2 Reconciliation Worksheet To obtain the worksheet use one of the Forms Ordering Services on Page 3 CAUTION: If you sold your principal residence but you do not qualify for the exclusion report your gain or enter zero if you realized a loss on PA Schedule D CAUTION: Nonresidents must use PA Schedule NRH to apportion expenses for PA personal income tax purposes A copy of PA Schedule NRH may be obtained by using one of the Forms Ordering Services listed on Page 3 Part year residents may only claim 100 percent of unreimbursed business expenses or use form 2106 to report the expenses if expenses were incurred only while providing services in Pennsylvania or while a PA resident Include a statement indicating the method used to determine the expenses for the period of residency (PA Schedule NRH may also be used for this purpose) CAUTION: On a joint return you and your spouse are each separately liable for the entire amount of PA tax due even if only one of you had taxable income and even if one of you paid your own PA tax through withholding or estimated payments The income and losses of a taxpayer and spouse must be determined separately You may not offset the income of the taxpayer with a loss from the spouse and vice versa See REPORTING NET INCOME GAINS AND LOSSES ON LINES 4 5 AND 6 beginning on Page 14 and the requirements for the schedules reporting the income and losses for each class of income for additional information and reporting requirements CAUTION: PA taxable interest income (Line 2) dividend income (Line 3) and gambling and lottery winnings (Line 8) are gross taxable income classes You may not deduct any expenses in computing these classes of income In computing compensation only certain expenses are deductible; see the special instructions beginning on Page 26 The remaining classes of income are net taxable you may deduct ordinary and necessary expenses paid or accrued during the taxable year in their production See the line instructions for each class of income CAUTION: Special rules apply for residents of reciprocal agreement states working within the commonwealth Special rules also apply for Ohio resident shareholder employees with a 20 percent or greater interest in a PA S corporation who worked or performed services in Pennsylvania in 2012 See Page 11 of the instructions and the PA PIT Guide for more information CAUTION: The amount you report on Line 10 cannot exceed the Total PA Taxable Income reported on Line 9 The amount reported on Line 10 on a joint tax return also cannot exceed the Total PA Taxable Income included in Line 9 for a taxpayer or spouse that would be calculated had the taxpayer or spouse filed separately CAUTION: The federal amount may not be correct for PA purposes You should contact the fiduciary of the estate or trust to verify the correct PA income CAUTION: You may be a statutory employee for federal purposes However PA law does not have a similar provision As a statutory employee you may have to claim your income as compensation and your expenses on PA Schedule UE For more information on statutory employees see Chapter 7 of the PA PIT Guide found on the department s website As an employee you must claim your expenses on PA Schedule UE If you are self employed you must report your business activity on Line 4 of your PA 40 and enclose the necessary PA Schedule C CAUTION: You may not claim depreciation on any vehicle CAUTION: You may not deduct expenses based upon federal per diem allowances You may only deduct those expenses actually paid while performing the duties of your employment CAUTION: You may not elect the installment sales method for: CAUTION: You may not file an amended PA return after the department issued an assessment if your amendment relates to the same taxable year and item of income gain deduction or loss that the department assessed You must either file a timely petition for reassessment or pay the assessment and file a timely refund petition Under PA law you must submit a Petition Form (Form REV 65) no later than six months after the date shown on the assessment CAUTION: You should receive a PA Schedule RK 1 and/or NRK 1 from the estate or trust If you received a federal Schedule K 1 you must report only the total income not taking into account any losses shown on the federal Schedule K 1 Add the total of income reported on federal Schedule K 1 as interest dividends long term and short term gains annuities royalties trade or business income rental income etc If you included any of these amounts on a PA schedule other than PA Schedule J adjust your PA schedule(s) accordingly Include a photocopy of the federal Schedule K 1 with your re turn for each nonresident estate or trust and/or each estate or trust for which you fail to receive a PA Schedule RK 1 and/or NRK 1 Central Dauphin 22140 Derry Township 22175 Halifax Area 22250 Harrisburg City 22275 Lower Dauphin 22400 Central Fulton 29130 Forbes Road 29230 Southern Fulton 29750 Central York 67130 Dallastown Area 67160 Dover Area 67180 Eastern York 67220 Hanover Public 67280 Northeastern 67440 Northern York County 67460 Red Lion Area 67550 South Eastern 67620 South Western 67640 Southern York County 67650 Spring Grove Area 67670 West Shore 21900 West York Area 67850 York City 67900 York Suburban 67940 CENTRE Cervical Cancer Research Fund 41 PA Income Tax Classes 8 PA PIT Guide 3 PA Tax Liability Line 12 19 PA/Federal Differences 9 Partnership Limited Liability Company And Chambersburg Area 28130 Fannett Metal 28200 Greencastle Antrim 28300 Shippensburg Area 21800 Tuscarora 28600 Waynesboro Area 28900 charge See Page 2 for more information Charitable Gift Annuities CHESTER Chester Upland 23123 Chichester 23130 Garnet Valley 23410 Haverford Township 23450 Interboro 23510 Marple Newtown 23550 Penn Delco 23690 Radnor Township 23760 Ridley 23770 Rose Tree Media 23790 Southeast Delco 23840 Springfield 23850 Unionville Chadds Ford 15850 Upper Darby 23945 Wallingford Swarthmore 23960 West Chester Area 15900 William Penn 23965 Choose the correct label that applies to your return Claiming Dependents on Separate PA Schedules SP CLARION Cleaning and maintenance CLEARFIELD Clearfield Area 17100 Curwensville Area 17180 Dubois Area 17200 Glendale 17300 Harmony Area 17350 Moshannon Valley 17500 Philipsburg Osceola Area 17700 Purchase Line 32730 West Branch Area 17900 CLINTON Cocalico 36130 Columbia Borough 36150 Conestoga Valley 36170 Donegal 36220 Eastern Lancaster County 36230 Elizabethtown Area 36240 Ephrata Area 36260 Hempfield 36310 Lampeter Strasburg 36360 Lancaster 36400 Manheim Central 36440 Manheim Township 36450 Octorara Area 15650 Penn Manor 36520 Pequea Valley 36530 Solanco 36700 Warwick 36900 Code 3 or 4 Death/Disability Distribution This is a distribution due to death and/or disability A distribution due to death is not taxable for PA purposes A distribution due to disability generally is not taxable for PA purposes Code 7 Normal Distribution This distribution from an eligible Pennsylvania retirement plan is not taxable if you met the plan requirements (the age and/or years of service required by the plan) for retirement and retired after meeting those requirements Code G or H Rollover This is a rollover from one qualified fund to another and is not taxable for PA purposes See IRA Distributions below COLUMBIA Column A Taxpayer or Spouse Enter a T if the payment or distribution was to the primary taxpayer shown first on the PA 40 or S if the payment or distribution was to the spouse Column B Type Enter the letter designation for the type of payment from the list of Payment Types shown at the bottom of the PA Schedule W 2S Wage Statement Summary If you do not know the type of payment listed on Form 1099 R you may need to contact the payer for more information regarding the distribution to properly report the type of payment For distributions from an IRA the box next to Box 7 on the 1099 R will have an X entered to indicate a distribution from a traditional IRA SEP IRA or SIMPLE IRA Distributions from Roth IRAs will have either code J or T included in Box 7 of the 1099 R Distributions from qualified deferred compensation plans should be listed on Forms W 2 or W 2P Column C Payer name Enter the payer s name Column D 1099 R code If the payment being reported is Column E Total federal amount Enter the total amount of Column F Adjusted plan basis If the distribution code in Column D is 1 2 J L S or U from the 1099 R enter the amount of the adjusted basis in the plan The adjusted basis in the plan or IRA is generally equal to the sum of the contributions to the plan or IRA minus the sum of prior distributions which were previously treated as nontaxable as a recovery of such contributions Column G PA compensation If you entered a 1099 R code 1 2 8 9 J L S or U from a 1099 R in Column D subtract the amount in Column F from Column E and enter the resulting amount (but not less than zero) here If you entered any other 1099 R code in Column D enter a zero in Column G (you have no PA taxable compensation from these codes) If the distribution code in Column D is a 7 and the payment type listed in Column B is K or L these types of payments are not taxable as compensation but are taxable as interest income to the extent there is income included in federal gross income Although not taxable as compensation they must be included to allow for reconciliation with amounts reported for federal income tax purposes See the PA PIT Guide Chapter 7 and the instructions on Pages 11 12 13 and 14 for additional information regarding 1099 R codes and their taxability Column H PA tax withheld If the payer withheld PA state income tax from the distribution or payment to you enter the amount withheld from that distribution or payment Combat Zone and Hazardous Duty Service Commissions Commodore Perry 43130 Crawford Central 20135 Farrell Area 43250 Greenville Area 43280 Grove City Area 43290 Hermitage 43330 Jamestown Area 43360 Lakeview 43390 Mercer Area 43500 Reynolds 43530 Sharon City 43560 Sharpsville Area 43570 West Middlesex Area 43750 Wilmington Area 37800 Commonly recognized pension old age or retirement benefits paid after becoming eligible to retire and retiring COMMONWEALTH Compensation Compensation as fees for performing services as an executor or an administrator of an estate or a director of a corporation (Line 1a) Complete Line 27 to report any adjusted penalty and interest to be included on the return Complete Lines 1 and 2 Complete Lines 30 through 36 to notify the department how to disperse your overpayment Complete PA Schedule W 2S Summary of PA Taxable Employee Miscellaneous and Non employee Compensation See the instructions on Page 25 and When to Submit Form(s) W 2 below; or Complete the Schedule PA 40X Enter the amended amounts from Schedule PA 40X per the PA 40X instructions Complete your personal income tax Completely revoke the trust without the declaration of new uses or the consent of any other party; and Conneaut 20103 Corry Area 25145 Crawford Central 20135 Jamestown Area 43360 Penncrest 20470 Titusville Area 61720 Union City Area 25910 Contains information indicating the liability is signifi cantly incorrect; or contribution to the Wild Resource Conservation Contributions PA law does not allow you to deduct your contributions to any IRA Contributions The contributions you make to your employer s sponsored retirement plan are PA taxable compensation even if your contributions are not taxable for federal purposes or included in the state wages shown on your W 2 Contributions to a Pennsylvania 529 College Savings Program account and other IRC Section 529 qualified tuition program accounts are deductible For additional information see the instructions for Line 10 Other Deductions on Page 19 and the instructions for PA Schedule O Other Deductions beginning on Page 33 Contributions to deferred compensation plans or other pension plans Copies of PA Schedules RK 1 or NRK 1 must be submitted for each S corporation partnership or limited liability company in which you are a shareholder partner or member Copies of PA Schedules RK 1 and NRK 1 must be submitted with all paper returns filed Electronically filed returns do not require the separate submission of these schedules as they are electronically submitted with the electronic return In cases where a PA Schedule RK 1 or NRK 1 is not made available federal Schedule K 1 should be provided Federal Schedules K 1 cannot be used to prepare electronically filed returns as they cannot be electronically submitted to the department Corry Area 25145 Erie City 25260 Fairview 25330 Fort Leboeuf 25355 General McLane 25390 Girard 25405 Harbor Creek 25435 Iroquois 25655 Millcreek Township 25760 North East 25830 Northwestern 25850 Union City Area 25910 Wattsburg Area 25970 Corry Area 25145 Titusville Area 61720 Warren County 62830 Cost of meals while working late unless while traveling away from home overnight on business Cost Recovery Costs incurred by blind employees to pay readers who assist them in performing their job duties; Covenants not to compete or for refraining from the performance of services (Classify) CRAWFORD credit before completing Lines 14 15 and 16 credit to your 2012 PA Estimated Tax account Credit unions even if reported as dividends on your statement Credit/Debit Card CUMBERLAND D1 Does your employer require you as a condition of employment to maintain a suitable work area away from the employer's premises? D2 Is this work area the principal place where you perform the duties of your employment? D3 Do you use this work area regularly to perform the duties Dallas 40160 Greater Nanticoke Area 40260 Hanover Area 40300 Hazleton Area 40330 Lake Lehman 40390 Northwest Area 40600 Pittston Area 40660 Wilkes Barre Area 40885 Wyoming Area 40920 Wyoming Valley West 40930 Damage awards and settlements to the extent that the payments represent back wages or another uncollected entitlement to PA taxable income (Classify) Danville Area 47180 Line Mountain 49350 Milton Area 49500 Mount Carmel Area 49510 Shamokin Area 49650 Shikellamy 49660 Southern Columbia Area 19750 Warrior Run 49800 Danville Area 47180 Warrior Run 49800 DAUPHIN Daytime Telephone Number Deceased means you are filing for a person who died during 2012 You must annualize the decedent s income before determining if he or she is eligible for Tax Forgiveness EXAMPLE: You may base the eligibility income on the prior year s return if the individual was eligible for Tax Forgiveness and received approximately the same income during this taxable year You may also calculate the eligibility income by using the income realized by the decedent during 2012 divided by the number of days or months the decedent lived and multiplied by 365 days or 12 months If there were any transactions such as the sale of stock or real property that were only one time transactions these amounts should not be considered when determining the daily or monthly income for the decedent when annualizing the income The depart ment will accept a reasonable calculation of the decedent s annual Eligibility Income Report the difference between the total annualized taxable income and the taxable income reported on the return on PA Schedule SP on Line 2 of Part C Decedents The executor administrator or other person responsible for the affairs of a decedent must file a PA tax return if the decedent met the above requirements Deductions DELAWARE Delaware Valley 52200 East Stroudsburg Area 45200 Wallenpaupack Area 64830 Delay damages received in connection with a court judgment or settlement to the extent that the payments represent back wages (Line 1a) delay or impede the administration of the PA tax law PA law imposes a penalty on any person required to furnish an information return that does not file a required information return or files a false or fraudulent information return The penalty is $250 for each information return Delinquent Federal Income Taxes 23 Stock Dividend Reinvestment Plans 30 Student Claimant 35 Students Residency Status 7 Supporting Schedules 5 Surviving Spouse 8 Tax Due Line 26 22 Tax Forgiveness Credit Line 21 20 Tax Rate COVER Taxable Distributions From C Corporations 31 Taxable Distributions From PA S Corporations 32 Taxable Distributions From Partnerships 32 Taxpayer Service And Information Center 3 Taxpayers Rights Advocate 3 Toll Free 24 hour Automated Forms Ordering 3 Total Estimated Payments And Credits Line 18 20 Total PA Taxable Income Line 9 19 Total PA Tax Withheld Line 13 19 Total Payments And Credits Line 24 20 Traditional IRA Rollover 12 Treasury Offset Program For Delinquent Delinquent Spousal/Child Support Federal law requires Pennsylvania to establish a child support offset program The Department of Revenue in cooperation with the Department of Public Welfare (DPW) intercepts PA income tax refunds of taxpayers that are delinquent DEPARTMENT OF dependent on the PA Schedule SP of his or her parents grandparents or foster parents See Page 35 Depending on your income and family size you may qualify for a refund or reduction of your Pennsylvania income tax liability with the state s Tax Forgiveness program Read the instructions beginning on Page 34 to see if you qualify Depreciation expense See DIFFERENCES BETWEEN PA PIT AND IRS beginning on Page 9 You may use any other generally accepted depreciation method but you must use it consistently Depreciation PA Limitations Descriptions of the code that can be entered in the block are as follows: detach your Form PA V from the insert Do not staple your check or money order to the Form PA V Please place your Form PA V and payment in the envelope with your PA 40 tax return using the "Payment Enclosed" label Determine your Eligibility Income If married whether filing jointly or separately you must determine your total (your Eligibility Income plus your spouse s Eligibility Income) joint Eligibility Income in Part C Determine your Filing Status in Part A DIFFERENCES BETWEEN PA PIT AND IRS Direct obligations of political subdivisions of Pennsylvania For a list of exempt obligations request Tax Exempt Obligations Direct obligations of the Commonwealth of Pennsylvania Direct obligations of the U S government (U S Treasury Bonds Notes Bills Certificates and Savings Bonds) Direct obligations of the U S government such as federal treasury bills and treasury notes; Directly related to performing the duties of your occupation or employment Distance Test Your new workplace must be at least 35 miles farther from your old residence than your old workplace was EXAMPLE: If your old workplace was three miles from your old residence your new workplace must be at least 38 miles from your old residence Measure the distance using the shortest of the most commonly traveled routes To determine if you meet this test complete Lines E1 E2 and E3 distribute losses as trust income Therefore all amounts for PA Schedule J should be positive Distributions designated as return of capital by utility companies and other corporations that reduce the basis of your stock in the corporation NOTE: Once such distributions reduce your basis to zero further distributions are Taxable Distributions from C Corporations on PA Schedule D See below Distributions from Employer Sponsored Qualified Retirement or Deferred Compensation Programs Distributions: Employer Sponsored Qualified Retirement or Deferred Compensation Programs 12 Distributions Form 1099 R 13 Dividends And Capital Gains Distributions Dividends distributed under a charitable gift annuity are not taxable However after you recover the amount you donated you must report further distributions as taxable gains on PA Schedule D Dividends from deposits or withdrawals from accounts paid by savings and loan associations mutual savings banks cooperative banks and credit unions Report these payments as PA taxable interest income on Line 2 of your PA 40 Dividends from PA tax exempt obligations Request Tax Exempt Obligations for Pennsylvania Personal Income Tax Purposes (Form REV 1643) for a list of exempt obligations DO NOT complete Lines 28 and 29 The department will properly calculate your amended total payment due or overpayment do not complete the amount blocks for Line 27 leave them blank If there is no amount included on Line 27 of the return no code should be entered in the block provided for the code on this line unless an REV 1630 is included with the return that indicates there is no Estimated Underpayment Penalty due to Exception 2 or the Special Exception rules as indicated on the completed and included REV 1630 or REV 1630A is included with the return indicating the individual meets the exceptions for farmers All returns with amounts listed on Line 27 should have a code listed in the block provided for the code on this line See the description of the codes listed above for the proper code to enter when an REV 1630 or REV 1630A is included Do not include qualifying active duty military pay earned outside of PA in taxable compensation Submit legible copies of your Form(s) W 2 and your military orders assigning you to federal active duty outside Pennsylvania While your Form W 2 may state active duty it does not show where you performed your military service Military personnel stationed abroad should use their APO or FPO addresses Do not include such reimbursements in gross compensation Do not claim such expenses on a PA Schedule UE Do not report interest income from direct obligations of the Do not report the gain (loss) on the sale exchange or disposition of any insurance contracts that are tax exempt for federal income tax purposes under IRC Section 1035 Tax exempt exchanges of insurance contracts include: Do not report the gain (loss) realized on the sale exchange or disposition of the following obligations if the original issue date was before Feb 1 1994 regardless of the date you acquired the obligation: Do not submit a federal Schedule D A taxpayer and spouse must complete separate schedules to report their gains or losses or if any amounts are reported on Lines 3 through 10 However if all the gains and losses were realized on a joint basis one schedule may be completed Complete the oval to indicate whether the gains and losses included on the schedule are from the taxpayer spouse or joint Do not take any depreciation expense on sales tax that you elected to currently expense for PA personal income tax purposes DO NOT: Include the sales of any exempt obligations issued prior to Feb 1 1994 See Page 17 of the instructions for additional information regarding exempt obligations DO: Include the issue or DTD date of the exempt obligation Documenting Gambling and Lottery Winnings and Losses Does not contain sufficient information for the department to determine the correct liability; doing so on a federal tax return A dependent child with taxable income in excess of $33 must file a PA tax return If that child s parents qualify for Tax Forgiveness that child is also eligible for this credit The child must file a tax return and a PA Schedule SP The child must also include any child support paid to his/her parent in his/her Eligibility Income donate to the Governor Robert P Casey Memorial donate to the Juvenile (Type 1) Diabetes Cure donate to the Military Family Relief Assistance donate to the PA Breast Cancer Coalition s donate to the Wild Resource Conservation Fund Dues and subscriptions to publications including trade and professional publications Dues to fraternal organizations professional societies Chambers of Commerce or recreational club memberships During 2012 you divorced or became a widow or widower and did not remarry E File Opt Out E If only the Estimated Underpayment Penalty is included E mail Requests for Forms: ra forms@pa gov Each estimated tax installment due and paid is equal to 90 percent of the installment payment due for each quarter based upon the income you received during the months in each installment period Each estimated tax installment payment due and paid is equal to the installment payment you should have paid based upon the income from last year s full year return or based upon the income as if you were a full year resident based upon this year s tax rate; or Early Retirement Incentive Plans earned received and realized from PA sources when East Stroudsburg Area 45200 Pleasant Valley 45520 Pocono Mountain 45540 Stroudsburg Area 45600 Easton Area 48330 Nazareth Area 48480 Northampton Area 48490 Northern Lehigh 39450 Pen Argyl Area 48560 Saucon Valley 48600 Wilson Area 48860 Education Savings Accounts Qualified Tuition Programs under IRC Section 529 Either of you is claiming one or more of the credits on PA Schedule OC; or Either of you is individually liable for the payment of spousal/child support or another liability to the PA Department of Public Welfare; or ELECTRONIC FILING OPTIONS electronic filing options and other information are available on the department s website If you do not have Internet access visit your local public library ELECTRONIC FILING SECTION Electronic Funds Transfer Elk Lake 58250 Lackawanna Trail 66500 Lake Lehman 40390 Tunkhannock Area 66750 Wyalusing Area 08900 Wyoming Area 40920 Employer provided fringe benefits unless excludable (Line 1a) Enclose all required supporting forms and schedules and assemble the return according to Page 5? Endowment Contracts 14 Assembling Your PA 40 5 Business Travel Expenses 28 Capital Gains Distributions 14 Combat Zone And Hazardous Duty Service 38 Credit/Debit Card Payment Options 24 Credit From Your 2011 PA Tax Return Line 14 20 Credit To 2013 Estimated Tax Account Line 31 23 Deductions 10 Dependent Children 35 Depreciation Differences Between Enter on this line all the penalties and interest you owe from filing your return late and/or failing to pay your tax by the due date If including Form REV 1630 Underpayment of Estimated Tax by Individuals or Form REV 1630A Underpayment of Estimated Tax by Individual Farmers fill in the oval on Line 27 of the PA 40 Enter the appropriate code in the block provided: Enter the amount of tuition or fees you actually paid Enter the amounts of your allowable Enter the area code and telephone number where the department can call you between 8:30 a m and 4 p m Enter the cost of travel Pennsylvania follows the federal Enter the cost or adjusted basis of the property sold Enter the costs of your books and other materials required for your courses Enter the gross sales price or fair market value of cash and property received less the applicable expenses of sale Enter the month day and year acquired If you acquired properties over time you may enter VARIOUS Enter the month day and year sold Enter the name identification number and amount of PA taxable income from each PA Schedule RK 1 or NRK 1 Check the box on the schedule to indicate if the estate or trust income you are reporting is received from a PA resident estate or trust as reported on a PA Schedule RK 1 or NRK 1 Do not check this box if you use a federal Schedule K 1 to report the income If you only receive a federal Schedule K 1 enter the total amount of positive income reported whether the income is your income your spouse s income or your joint income Include a photocopy of the federal Schedule K 1 with your return for all nonresident estates or trusts and/or each estate or trust for which you fail to receive a PA Schedule RK 1 or NRK 1 Enter the name of the college university or educational institution you attend and your specific course of study Your education must meet the requirements described above Enter the name of the taxpayer claiming the expenses and the SSN shown first on the return Enter all the employer information and briefly describe the job or position for which you incurred the expenses you are claiming Enter only the expenses incurred for the employer listed on this schedule Enter the number of dependent children you are claiming FILING TIP: If you do not have any dependents go to Part C CAUTION: If claiming an adult child an adopted child a foster child or a child with a different last name than yours Enter the number of dependent children you are claiming from Part B Line 2 of PA Schedule SP Enter the PA tax withheld by your partnership or PA S corporation You must submit your PA Schedule(s) NRK 1 Enter the payment you made with your 2012 extension request Enter the status from Part A of your PA Schedule SP To determine if you are eligible to include PA Schedule SP with your return please refer to the instructions beginning on Page 34 Enter the total amounts from Part A and Part B for PA compensation and PA tax withheld on the PA 40 Lines 1a and 13 respectively Enter the total of the allowable credits you can claim on PA Schedule OC PA Schedule OC is not included with this booklet and may be obtained by using one of the Forms Ordering Services on Page 3 Enter your actual allowable transportation expenses as described above Enter your actual qualifying expenses for travel meals and lodging as described above Enter your credit from Part D Line 16 of your PA Schedule SP Enter your credit from your 2011 PA tax return Enter your Line 24 amended total payments and credits Enter your rental and royalty expenses for each property You can deduct all ordinary and necessary expenses Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements other than through depreciation Enter your total 2012 estimated payments Include your spouse s 2012 estimated payments if filing jointly Do not include any payment of tax due made with a PA tax return Enter your total allowable PA credit for personal income tax that you paid to another state(s) or country You must: Enter your total eligibility income from Part C Line 11 of your PA Schedule SP Entering Information eral and state income tax returns to gether or separately It is available through tax preparers or computer software If you meet certain qualifications you can also obtain free software to file your tax returns Fed/State e file allows direct deposit of your refund and the option to pay your PA tax due by elec tronic funds withdrawal or with a credit card Visit the de partment s website at www revenue state pa us for more information Erase or use correction fluid Espa ol estate or trust by gift bequest devise or inheritance is not taxable You must report any PA taxable income that you subsequently earn or receive from that cash or property Estimated Payments and Credits FILING TIP: Visit the Revenue e Services Center at www revenue state pa us or call the department's estimated payments you should file separate tax returns each claiming only your own payments If you and your spouse made your estimated payments jointly you should file a joint tax return However if you and your spouse made estimated payments jointly and because of PA guide lines you must file separate tax returns you must allocate the payments by completing Form REV 459B Consent to Transfer Adjust or Correct PA Estimated Personal Income Tax Account The form must be completed in its entirety showing the total number of payments made for the year and the amount of the payments to be transferred to the spouse Estimated Underpayment Penalty EXAMPLE: Anthony is a licensed professional in a position that by law requires a specific number of continuing educa tion credits every other year If Anthony fails to obtain these credits he will lose his license Anthony also takes courses in using a computer to improve his job performance Anthony may claim the cost of his continuing education courses He may not claim the computer courses EXAMPLE: Dave earned compensation of $30 000 He incurred allowable vehicle and travel employee business expenses of $3 000 and was reimbursed $3 500 He must complete a PA Schedule UE He includes the excess $500 as compensation His total net taxable compensation is $30 500 Examples of taxable items include the following: antiques paintings appliances books stationery computers exer cise equipment sports equipment formal clothing furniture furnishings jewelry luggage handbags musical instru ments office equipment souvenirs televisions radios stereo equipment video equipment and camera equipment Examples of taxable services include lawn care pest control self storage building cleaning and maintenance services such as housekeeping services See the Retailer s Information Guide (REV 717) for an extensive though not comprehensive list of taxable items and services EXAMPLES: Line 4 Mary and Ben file a joint tax return Mary owned a flower shop and realized a net profit of $5 000 Ben was a shareholder in a PA S corporation and received a PA Schedule RK 1 reporting $35 000 of business income They jointly owned a small retail store and realized a loss of $8 000 They report $32 000 on Line 4 from Mary s net income of $1 000 ($5 000 less her half of the $8 000 loss) plus Ben s net income of $31 000 ($35 000 less his half of the $8 000 loss) Exchange of Insurance Contracts Exempt Obligations Originally Issued before Feb 1 1994 Exempt Obligations Originally Issued on or after Feb 1 1994 Expenses expenses on this schedule Include state Extension of Time to File Extension of Time to File Your 2012 Tax Return Fannett Metal 28200 Greenwood 50300 Newport 50400 Susquenita 50600 West Perry 50800 Farmers FAYETTE Fed/State e file allows you to file fed federal At Risk Rules or Passive Activity Loss Rules Federal Form 1099 R (Qualified Plans and IRAs) Federal income classifications are disregarded to the extent they are inconsistent with PA classifications Federal legislation signed into law late in 2011 and early 2012 federal per diem rates for meals and incidental expenses are Federal tax account or technical information and problem solving are available by calling: 1 800 829 1040 Federal Tax Assistance Federal tax forms and publications are available by calling: 1 800 829 FORM (3676) Fees or income included in your PA taxable compensation on your Form W 2 that you are required to pay to your employer as a condition of employment; File your personal income tax return electronically using one of three methods offered by the PA Department of Revenue TeleFile and padirectfile are available free of charge Filing Due Date Filing Status Filing Tip: An amended return should not be filed FILING TIP: Cash and property you acquire from an FILING TIP: Generally other or miscellaneous income FILING TIP: If a joint return including IRC Section 529 FILING TIP: If claiming a foster child in Part B you must include the payments you received as a foster parent However if the foster care program did not place the child in your home or you did not receive any payments for providing foster care submit a written explanation that you do not have any income to report as a foster parent Include an explana tion of the child s relationship to you FILING TIP: If you and your spouse made separate FILING TIP: If you claim a credit for Tax Forgiveness FILING TIP: Taxpayers claiming any credit on PA FILING TIP: You must file a separate PA Schedule UE FILING TIP: You must include nontaxable interest and dividends as Eligibility Income on PA Schedule SP FILING TIPS: FILING TIPS: If you overpaid your 2012 PA income Fill in all appropriate ovals completely Fill In Form PA V Fill in the Amended Return oval and write AMENDED RETURN at the top of the PA tax return Fill in the extension request oval at the top of your PA 40 Fill in the oval that describes your status as of Dec 31 2012 Fill in the oval that describes your status on Dec 31 2012 You do not have to file a PA tax return if you do not individually meet the requirements described under Who Must File a PA Tax Return? on Page 5 If you do not live in Pennsylvania and do not have any income (loss) from PA sources you do not have to file a PA tax return even if married to someone who must file a PA tax return If you are a PA resident who does not have any PA income (loss) to report you do not have to file a PA tax return even if married to a person who must file a PA tax return Fill in this oval if any of the information on your label is wrong or if you did not file a PA income tax return last year Fill in this oval if you derived at least two thirds of your 2012 gross income from farming Fill in this oval if you have an extension to file your 2012 PA income tax return Read the instructions on Page 38 Fill in this oval only when you are amending your 2012 PA tax return Please read the instructions beginning on Page 38 Final for a taxpayer that died after Dec 31 2012 and had no PA taxable income (loss) in 2013 Follow these procedures when applying for an extension of time to file: For all schedules enter the complete name and SSN of the taxpayer reporting the income or claiming the expenses If filing a schedule jointly enter the complete name and SSN of the taxpayer listed first Each taxpayer must submit a separate schedule for each separately owned business profession or farm You and your spouse may file these schedules jointly: For detailed information on use tax reporting responsibilities and options visit www revenue state pa us/usetax for each employer Spouses may not report joint expenses on a PA Schedule UE even if filing jointly An incomplete schedule may result in delays in the processing of your return and/or denial of the expenses For filing an amended return on a 2012 PA 40 complete the following steps: For more information on differences between Pennsylvania and the IRS refer to the PA PIT Guide and the specific chapters related to the income class for which you have a question The differences described below are the result of recent Pennsylvania and federal legislation For more information request the brochure Military Pay for Pennsylvania Personal Income Tax Purposes (REV 612) CAUTION: PA residents serving in the Merchant Marines For PA purposes determine net income (loss) under accepted DISPOSITION OF PROPERTY for Pennsylvania Personal Income Tax Purposes (Form REV 1643) Foreign Address Instructions FOREST Forest Area 27200 Forest City Regional 58300 North Pocono 35650 Susquehanna Community 58650 Wallenpaupack Area 64830 Wayne Highlands 64870 Western Wayne 64890 Forfeited Interest Penalty Forgives some taxpayers of their liabilities even if they have not paid their PA personal income tax Form W 2 Wage and Tax Statement FORMS ORDERING SERVICES FRANKLIN Free Income Tax Preparation Assistance from a federal Form 1099 R enter the distribution code listed From business accounts working capital interest and accounts receivable in determining profit (loss) on a PA business schedule; From Mutual Funds Line 3 14 Early Retirement Incentive Plans 12 Education Expenses 29 Education Savings Accounts 10 Electronic Filing Options 2 Eligibility Income 35 Eligible Employer Sponsored Retirement Plan 12 E Services Center 3 Estate Or Trust Income Line 7 18 Estimated Payment Requirements 37 Estimated Underpayment Interest Penalty 22 Extension Of Time To File 38 Extension Payment Line 16 20 E File Opt Out 23 Farmers 8 Federal Form W 2 Wage And Tax Statement 10 Filing Due Date 5 Filing Status: From rental security deposits in determining income (loss) on PA Schedule E FULTON Fund This special nonprofit fund helps Pennsylvania's resource agencies protect and restore these unique state treasures Gain excluded from the sale of a residence Enter your nontaxable gain Gain from Installment Sales Enter your taxable gain from each PA Schedule D 1 Form REV 1689 Computation of Installment Sale Income Gains or losses from the IRC Sections 988 1256 and 475 or from straddles hedges options or other derivatives Gambling and Lottery Winnings Gambling and lottery winnings include cash the value of property (automobiles jewelry electronic devices appliances clothes etc ) the value of the use of property (trips vacations airline tickets cruises etc ) and other items of value You may only deduct your costs of gambling wagering betting and playing lotteries from your winnings You may not deduct any expenses (programs tip sheets travel meals lodging etc ) that you incurred to take part in gambling wagering betting and lottery activities General Instructions Generally you must adjust your federal amounts for PA tax purposes These adjustments can increase or decrease your PA taxable income (loss) You must maintain appropriate records of such adjustments Gifts awards and prizes Include the total amount of nontaxable cash or property received as gifts from others Also include awards received in recognition of civic and social achievements and prizes from all games of the Pennsylvania Lottery GNMA and FNMA certificates and other obligations that are guaranteed by the U S government but not direct obligations of the U S government GOVERNOR ROBERT P CASEY MEMORIAL ORGAN AND TISSUE DONATION AWARENESS TRUST FUND Grantor Trust GREENE GREENSBURG Greenwood 50300 Juniata County 34360 Gross rents and royalties include all items of gross receipts as described above except: HARRISBURG Harrisburg area residents may call 717 425 2533 HARRISBURG PA 17128 0600 HARRISBURG PA 17129 0001 Hazleton Area 40330 Jim Thorpe Area 13500 Lehighton Area 13550 HELEN SAUNDERS INGE DIETRIC FISCHER Help those who serve our Nation and Common wealth by making a gift to the Military Family Relief Assistance Program Your gift will help Pennsylvania service members and their families by providing financial assistance to those with a direct and immediate financial need as a result of military service You can also send a direct tax deductible gift to the Military Family Relief Assistance Program c/o Department of Military and Veterans Affairs Fort Indiantown Gap Annville PA 17003 5002 For more information visit: www dmva state pa us or call toll free 1 866 292 7201 How Do I Claim Tax Forgiveness? How to Classify Dividend Income How to Classify Interest Income How to Pay However an aunt uncle or unrelated person cannot claim a child as a dependent as defined above even if claiming the child as a dependent on a federal income tax return However providing heat lighting electric service elevators cleaning public access and exit areas collecting trash and maintaining the property in a usable rental condition are not usually significant services HUNTINGDON Huntingdon Area 31250 Juniata Valley 31280 Mount Union Area 31600 Southern Huntingdon County 31750 Tussey Mountain 05800 Tyrone Area 07800 Identification Label Change If a taxpayer died after Dec 31 2012 but before filing his or her 2012 PA tax return the surviving spouse executor or other person responsible for the affairs of the decedent has the option to file the 2012 return as: If each realizes a net loss add the net losses and report that total on the appropriate line Fill in the oval next to that line If filing separately with a joint estimated account the depart ment may delay one return until the other processes If your estimated payments are not properly posted to your account request and file Form REV 459B Both spouses must sign this form The department will apply your estimated payments according to your written request If in the business of renting your property you report your net profit (loss) on a PA Schedule C Please see Page 16 Reporting Rental Income (Loss) as Business Activity on Line 4 or as Rents on Line 6 If Line H is more than Line I include your unre imbursed expenses on Line 1b of your PA 40 If Line I is more than Line H include your excess reimbursements on Line 1a of your PA 40 If Lines 28 and 29 are zero: If the adjusted basis is greater than Column (d) enter zero in Column (f) You cannot report a loss on the sale of personal property If the adjusted basis is less than or equal to Column (d) enter the gain or zero in Column (f) If the decedent was married the surviving spouse should file a separate return and use the Single (S) filing status If the decedent made PA estimated payments the surviving spouse may request Form REV 459B to reconcile the estimated payments to the separate PA tax returns Request this form from the department s website or one of the Forms Ordering Services on Page 3 If the exchange of contracts has the effect of transferring property to a non U S citizen the gain or loss is not tax exempt If you receive cash or other boot in an exchange of contracts see the PA PIT Guide If the total of Line 12 and Line 25 is more than Line 24 enter the tax you owe You must pay the tax due in full on or before April 15 2013 See the instructions for payment options beginning on Page 23 If using the envelope the department provided in the booklet follow these instructions for mailing your PA tax return: If you are a PA resident college student attending school outside Pennsylvania or a nonresident college student attending school within Pennsylvania request the brochure PA Personal Income Taxes for College Students (REV 758) for more information If you are a PA resident nonresident or a part year PA resident you must file a 2012 PA tax return if: If you are a PA resident shareholder of an S corporation or a PA resident partner in a partnership that does business entirely within another state the entity is also required to file a PA 20S/PA 65 PA S Corporation/Partnership Information Return as a result of having a PA resident shareholder or partner You should receive a PA Schedule RK 1 from that entity which you must submit with your PA 40 return to report your share of the income (loss) whether distributed or not as shown on your PA Schedule(s) All the shareholders may also elect to not be taxed as a PA S corporation by filing Form REV 976 Election Not To Be Taxed As A Pennsylvania S Corporation You or the S corporation can obtain this form by using one of the Forms Ordering Services on Page 3 If you are a PA resident working in one of these states and your employer withheld the other state s income tax you must file for a refund from that state FILING TIP: File early so you will have your refund before the due date for paying your PA tax liability If you are a partner in a partnership or a shareholder of a PA S corporation you should receive a PA Schedule RK 1 You must submit a copy of each PA Schedule RK 1 and report your share of income whether distributed or not as shown on your PA Schedule(s) If the partnership does not provide a PA Schedule RK 1 you still must report and classify the income (loss) from the federal Schedule K 1 according to the instructions for each PA income class You must also submit a copy of your federal Schedule K 1 and related supporting schedules where applicable that provide information as to the classification of the income from the federal Schedule K 1 If you are a resident of a reciprocal state working in Pennsylvania and your employer withheld PA income tax you may request a refund of the PA tax You report zero taxable compensation on Line 1a and the PA tax withheld on Line 13 Submit a legible photocopy of your Form W 2 a copy of the resident income tax return that you filed with your resident state (without the supporting forms and schedules) and a statement explaining that you are a resident of a reciprocal state If you are a shareholder in another state's Subchapter S corporation and that corporation elected not to be treated as a PA S corporation include the cash or property you actually received out of the corporation s earnings and profits as dividend income on Line 3 If you received distributions in excess of the corporation s earnings and profits report these distributions on PA Schedule D Do not report the amount of your distributable income and do not submit the federal Schedule K 1 A shareholder may not claim a credit for income tax paid to another state by an S corporation that elected not to be treated as a PA S corporation If you are a shareholder or partner submit the following: a PA Schedule G R; completed PA Schedule G L for each state or country in which a credit is claimed; the statement from the partnership or S corporation providing the breakdown of the states and amounts and classes of income subject to tax in each state; a copy of your PA Schedule(s) RK 1; and a copy of the other states tax re turns If you are a shareholder or partner and the S cor poration or partnership files a composite return on your behalf for the other state or states your partnership or PA S corporation submits the other state s return with its PA 20S/PA 65 Information Return and a copy of the other states tax returns are not required to be included with the PA 40 In such cases submit a statement from the S cor poration or partnership providing the breakdown of the income and taxes paid to each state on your behalf If you are filing your return electronically you must still fax or mail copies of your orders Print COMBAT ZONE at the top of your orders Fax your orders to 717 772 4193 or mail your orders to: If you are including Form REV 459B Consent to Transfer Adjust or Correct PA Estimated Personal Income Ta x Account fill in the oval on Line 15 of the PA 40 If you are married you and your spouse may file a joint tax return for convenience only PA law does not provide any advantage when filing a joint return PA law does not allow spouses to offset income and losses with each other even when both have activity in the same income class You must follow these rules: If you are not a resident of Pennsylvania but are a partner in a PA partnership or a shareholder of a PA S corporation you should receive a PA Schedule NRK 1 You must submit a copy of each PA Schedule NRK 1 and report your share of PA taxable income (loss) whether distributed or not as shown on your PA schedule(s) If the partnership does not provide a PA Schedule NRK 1 and the partnership has income (loss) from PA sources you still must report and classify the income (loss) from your federal Schedule K 1 according to the in structions for each PA income class You must also submit a copy of your federal Schedule K 1 and related supporting schedules where applicable that provide information as to the classification of the income from the federal Schedule K 1 If the income (loss) is being reported to PA from a federal Schedule K 1 and the income (loss) is not 100 percent of the amount from the federal Schedule K 1 a schedule or written explanation should be submitted along with the federal Schedule K 1 explaining how the amount reported was determined If you are subject to the penalty the penalty will not be imposed if: If you cannot file by the due date request an extension of time to file Read the instructions on Page 38 If you do not file your return by the due date the department imposes late filing penalties and interest charges If you did not file a PA Form REV 276 submit a copy of the federal Form 4868 with your PA tax return If you did not receive a personalized Form PA V complete the fill in form version of the 2012 PA 40 PA V found on the department s website at www revenue state pa us Using this version of the form will enable the department to more accu rately process your payment If you discover that you did not report taxable income or erroneously claimed credits or deductions you must correct the error within 30 days File an amended PA return and pay the additional tax plus penalty and interest Amended returns to pay additional tax can be filed at any time There is no statute of limitations for filing a return when an error is discovered that results in additional tax due If you do not electronically file your tax return use the PA 40 form Please read the instructions If you do not enter amounts on Lines 30 through 36 or the total of these lines does not equal Line 29 you will receive a refund check If you overpaid you may apply all or part of your overpayment as follows: If you do not have a Form PA V make your check or money order payable to: PA DEPT OF REVENUE If you do not have a preprinted envelope mail your payment to: If you do not have the department provided envelope send If you do not maintain separate books and records for Pennsylvania you may submit your federal schedule with your PA 40 only if you do not have to adjust your federal amounts to comply with the specific differences between federal law and PA law If you do not report taxable income that is more than 25 percent of the taxable income shown on your return PA law imposes an additional penalty This penalty is 25 percent of the tax due on your unreported income If you electronically filed your federal extension submit a statement with an explanation and the confirmation number you received If you entered a payment from a 1099 MISC or from another document other than a 1099 R enter the amount from Column E If you established a gift annuity to a charitable organization from which you are receiving periodic payments you have PA taxable income Charitable gift annuities report their income as interest income on Line 4 of PA Schedule A using the amounts reported or included in gross income for federal income tax purposes (ordinary income and capital gains income) regardless of when they began reporting the income from that charitable gift annuity In the event that a charitable gift annuity is exchanged or sold in the future the PA basis in a charitable gift annuity will be different from the federal basis for charitable gift annuities from which payments began prior to Jan 1 2005 Income from the sale or exchange of a charitable gift annuity is reported on PA Schedule D If you expect to earn receive or realize $8 000 of PA taxable income ($246 of PA tax) that is not subject to withholding by a Pennsylvania employer in 2013 you must make 2013 estimated tax payments If you file your return by April 15 2013 and are unable to make full payment of the taxes due the department will bill you for the remainder of any tax penalties and interest due It is better to file your return when it is due and have a 5 percent penalty plus interest added to the amount you owe than to not file and not pay and have up to a 25 percent penalty plus interest added to the amount you owe If you filed a tax return last year your Social Security number (SSN) and ZIP code are all you If you filed using Fed/State e file TeleFile or padirectfile mail only your Form PA V and payment Use the envelope and "Payment Enclosed" label provided in the booklet If you have an amount on Line 28: If you have an amount on Line 29: If you have incomplete or inaccurate receipts to calculate use tax on purchases less than $1 000 you may use Table 1 to estimate your use tax liability based on taxable income If you have multiple Schedules A B D E or J due to entries beyond the capacity of the forms include the total income for that form on one form only If you have not reached the retirement age or years of service requirements under such eligible Pennsylvania retirement plan If you have receipts or purchase records for items or services subject to use tax use the worksheet below to calculate your use tax liability Taxpayers are encouraged to review purchase histories made available online by popular Internet sellers and use that information to calculate the tax due If you invested in an annuity including a retirement annuity that is not part of an employer sponsored retirement program you may have PA taxable income when you begin receiving annuity payments If you are required to report an amount from an annuity for federal income tax purposes you are required to report the amount as interest income for PA PIT purposes Also if you are required to report an amount from a life insurance and endowment contract for federal income tax purposes you are required to report the amount as interest income for PA personal income tax purposes If you live outside of the U S it is important that you write your foreign address on your PA 40 according to U S Postal Service standards Failure to use these standards may delay any refunds you request or correspondence necessary to complete the processing of your return To comply with the foreign address standards use the following rules when completing the address portion of your PA 40 form: write your name(s) in the spaces provided; write the house number with street apartment number and street or postal delivery location in the spaces provided for the First Line of Address on your PA 40 form; write the name of the city city and province and/or foreign postal number (ZIP code equivalent) in the spaces provided for the Second Line of Address on your PA 40 form; write only the name of the country in the spaces provided for the City or Post Office on your PA 40 form; and DO NOT include any entries in the state or ZIP code spaces on your PA 40 form To the right are two exam ples of properly completed foreign addresses as provided by the U S Postal Service Providing your address in this format will better ensure that the department is able to contact you in the event we need additional information or to send you your refund on a timely basis If you neither owe nor overpaid You have zeros on Lines 28 and 29: If you overpaid You have an amount on Line 29: If you owe tax You have an amount on Line 28: If you paid some sales tax on items for example sales tax at a lower rate paid to another state or sales tax paid to Pennsylvania but not Philadelphia you may offset your use tax liability by the sales tax already paid using this worksheet If you paid someone to prepare your tax return the preparer should enter his or her name or business name telephone number PTIN and the company s EIN in the spaces provided on the return If you purchase a Powerball or Mega Millions ticket in Pennsylvania whether a PA resident or not any prize you win is not taxable for PA PIT purposes If you are a PA resident and purchase a Powerball or Mega Millions ticket in another state any prize you win is PA taxable income If you purchase items or services subject to sales tax for which the seller does not charge and collect sales tax on the invoice or receipt you are personally responsible for remitting the use tax directly to the PA Department of Revenue If you realize you made a mistake on your 2012 PA tax return you must correct your return by filing a separate 2012 PA 40 return marking the Amended Return oval on the return and completing and submitting Schedule PA 40X for the tax year being amended with your amended return If you made a mistake on a 2007 or earlier tax year return you must obtain a PA 40 PA Personal Income Tax Return booklet for the year you want to amend and use the Amended Returns instructions included therein If you received a distribution from an annuity that is not an employer sponsored retirement plan see Annuities Life Insurance or Endowment Contracts on Page 14 FILING TIP: If you receive a distribution from a retire ment plan IRA or any other plan reported on federal If you received a distribution from an IRA (before age 591/2 and retiring) and rolled the entire distribution (100 percent) into a Roth IRA directly or within 60 days the distribution is not taxable income for PA purposes If you did not roll the entire distribution into another IRA you must report PA taxable income to the extent the distribution exceeds your contributions that is apportionable thereto If you sold your principal residence in 2012 and meet the requirements for the 100 percent gain exclusion do not report the sale on your tax return This exclusion is not identical to the federal exclusion Generally if during the five years preceding the sale of your home you owned it for at least two years and used it as your principal residence for at least two years you are eligible for this exclusion If you submitted PA Form REV 276 or electronically filed your PA extension and payment you do not have to submit the extension paperwork with your PA tax return If you used a portion of your principal residence for business purposes during your ownership you may have gain or loss to report on the sale For more information request the brochure Sale of Your Principal Residence (REV 625) and PA Schedule 19 Sale of a Principal Residence Also see the PA Schedule D instructions beginning on Page 31 If you withdrew from the traditional IRA and within 60 days invested the entire (100 percent) amount you received into a Roth IRA If you withdrew from the traditional IRA and within 60 days invested the entire (100 percent) amount you received into another traditional IRA If you worked outside of Pennsylvania and your employer did not withhold PA personal income tax your PA wages may be higher or lower than the state wages reported on your Form W 2 in Box 16 Amounts paid to you as retirement plan contributions personal use of company automobile and/or group term life insurance may require additional adjustments to the amount reported to the other state or country See the PIT Guide Chapter 7 for additional information If your Eligibility Income from PA Schedule SP Line 11 does not exceed: If your employer does not reimburse you you may reduce your compensation by your allowable expenses If your reimbursement is more than your allowable expenses you must report the excess as taxable compensation on Line 1a If your total PA taxable dividend and capital gains distributions income (taxpayer spouse and/or joint) is $2 500 or less you must report your income on Line 3 of the PA 40 but you do not have to complete and submit a schedule If your total PA tax able dividend income (taxpayer spouse and/or joint) is more than $2 500 you must complete PA Schedule B with the name of the payer and the PA taxable dividend from each Form 1099 or other statement A taxpayer and spouse must complete sep arate schedules to report their income or if any amounts are re ported on Lines 3 and 4 However if all the income is earned on a joint basis one schedule may be completed Complete the oval to indicate whether the income included on the sched ule is from the taxpayer spouse or joint When reporting the dividend income from jointly owned stock not reported on a joint Schedule B the taxpayer and spouse must show their share of the dividend income on their separate Schedule B If your total PA taxable interest income (taxpayer spouse and/or joint) is $2 500 or less you must report your income on Line 2 of the PA 40 but you do not have to complete and submit a schedule If your total PA taxable interest income (taxpayer spouse and/or joint) is more than $2 500 you must complete PA Schedule A with the name and PA taxable interest of the payer from each Form 1099 or other statement A taxpayer and spouse must complete separate schedules to report their income or if any amounts are reported on Lines 3 through 7 However if all the income is earned on a joint basis one schedule may be completed Complete the oval to indicate whether the income included on the schedule is from the taxpayer spouse or joint When reporting the interest income from jointly owned accounts not reported on a joint Schedule A the taxpayer and spouse must show their share of the interest income on their separate Schedule A II If your property was other than income producing property (a personal automobile or furniture) then: IMPORTANT: A married person who is liable for IMPORTANT: Also report on PA Schedule A: IMPORTANT: Do not claim the credit if you originally IMPORTANT: Do not include the surviving spouse s IMPORTANT: Do not use the above addresses to send other correspondence to the department IMPORTANT: Do not use these mailing labels to send other correspondence to the department IMPORTANT: For detailed information on Pennsylvania IMPORTANT: Grantor or irrevocable trusts do not IMPORTANT: If the partnership only provides a federal IMPORTANT: If the property is located in another state IMPORTANT: If you are a nonresident part year IMPORTANT: If you are a PA resident working in a IMPORTANT: If you are in the military you do not have IMPORTANT: If you currently expense such sales IMPORTANT: If you do not have a use tax liability or used form PA 1 to report and pay use tax you must enter zero on Line 25 IMPORTANT: If you do not owe any penalty or interest IMPORTANT: If you earn at least $8 000 in the other IMPORTANT: If you retired but did not reach age 591/2 IMPORTANT: If you were in the real estate sales IMPORTANT: One spouse may not use a loss to IMPORTANT: PA law does not distinguish between IMPORTANT: Renting Part of Your Home If you rent IMPORTANT: The department has the legal authority IMPORTANT: You cannot use a loss that you report in one income class on your tax return to reduce income in any other class IMPORTANT: You may deduct 100 percent of your PA allowable unreimbursed employee business expenses IMPORTANT: You may not deduct the cost of IMPORTANT: You may only deduct losses from transactions you entered into for profit Indicate a loss by filling in the oval IMPORTANT: You must report all such gains and can use any losses to offset other gains IMPORTANT: You must submit legible photocopies In addition to the property the taxpayer also provides significant services (see explanation below) to the lessee; or in Box 7 of the 1099 R in Line 27; In order to reduce printing and mailing costs associated with Form 1099 G which details government payments most commonly state tax refunds beginning in 2013 the Department of Revenue will no longer mail 1099 Gs to any taxpayer who does not specifically request a paper copy In 2013 1099 Gs will be available on the department s website for all taxpayers who received refunds of state taxes during the prior tax year and claimed itemized deductions on federal 1040 tax returns for the tax year for which the refund was issued 1099 G information is provided to the IRS electronically each year by the department In Pennsylvania alone there are more than 8 200 men women In some instances the department will accept federal schedules see the Schedule Instructions beginning on Page 24 in spousal/child support and provides the offsets to the PA Child Support Enforcement System in the description of the items sold Incentive payments received for terminating employment before reaching normal retirement age (Line 1a) Include on Line 27 any penalty for failing to make estimated PA income tax payments or making your payments late or underpaying your estimated taxes Include the earnings distributed to you (other than withdrawals of your previously PA taxed contributions) as dividend income on Line 3 Include the PA allowable expenses that you report on your federal Form 2106 in the space provided You must include a separate statement that itemizes and describes in detail these expenses Additional examples of expenses that you may claim include: Income income (including one half of any joint income received prior to the decedent s date of death) in the calculation of the decedent s eligibility income Likewise surviving spouses should not include any income in respect of a decedent income that should be included on the estate tax return or any income of the deceased taxpayer (including the decedent s half of any joint income received prior to the decedent s date of death) in the taxable income or in the calculation of the eligibility income of the surviving spouse Income for performing services as an executor or director when such services are undertaken as part of your business or profession (Line 4) Income from contracts of insurance for long term care that do not have accumulated refundable reserves payable upon lapse or surrender Income from Estates or Trusts income not already reported on this schedule that you (and your spouse if applicable) earned received and realized while residing outside Pennsylvania Include any amount exempted from taxation under the Military Spouses Residency Relief Act (see Page 37 for additional information) If you are a part year resident or nonresident and you file a paper copy of your PA 40 return you must also include a copy of page one of your federal income tax return INCOME NOT TAXABLE FOR PA PIT PURPOSES: Income on life insurance contracts annuities or endow Income Subtract Line 18 from Line 1 or 2 INDIANA Indicates that the taxpayer is filing in a manner to Individual Retirement Accounts Individuals and businesses with Pennsylvania sales tax licenses should report use tax on their sales tax returns information You may also request the Determining Inheritances death benefits and income in respect of a decedent (IRD) as defined for federal income tax purposes instructions for more information INSTRUCTIONS FOR NONRESIDENTS Insurance Insurance proceeds and inheritances This amount includes the total proceeds received from life or other insurance policies Also include inherited cash or the value of property received as well as the amount re ceived as reported on federal Form 1099 R with distri bution code 4 reported in Box 7 of the form Interest Income Dividend Income and Gain from the Sale of Intangible Property Interest on the amount you do not pay by April 15 2013 INTERNET Internet Go to Official Payments Corporation at www officialpayments com Internet: www revenue state pa us IRA Distributions (60 day rollover rule) IRC Section 529 Qualified Tuition Program Contributions is either compensation on Line 1a (see Page 10) or business income on Line 4 (see Page 15) If you cannot determine the income class contact the department for assistance It is possible that you and your spouse file jointly for federal purposes but must file separately for PA purposes If you qualify for Tax Forgiveness you must each complete PA Schedule SP as if filing jointly You each must report the same information including dependents and your joint eligibility income You must fill in the Married and Filing Separate oval in Part A of each PA Schedule SP You must each submit a copy of the PA Schedule SP with your PA tax return JEFFERSON Jersey Shore Area 41400 Keystone Central 18360 West Branch Area 17900 Joint Income Joint Returns JUNIATA JUVENILE (TYPE 1) DIABETES CURE RESEARCH FUND Keep Your Records KEVIN TAXPAYER JOSEPH TAXPAYER UNIT 2050 BOX 4190 USCGC HAMILTON APO AP 96278 2050 FPO AP 96667 3931 L If Late Payment Penalty and Interest Failure to File Penalty and Interest or Late Filing Penalty and Interest is included in Line 27; LACKAWANNA LANCASTER Language Services law ask your plan administrator LAWRENCE Lease with an Option to Buy A lease with an option to buy may be a purchase contract under accepted accounting principles and practices If it is the payments you received under the contract are payments of the purchase price and are not includable as rental income Report such income on PA Schedule D Leave a blank box between whole words Leave a blank box or use a punctuation mark if your name address or city has Mc Van O etc LEBANON Legal and professional fees Legal fees (except to recover back wages) fines penalties and bad debts LEHIGH Less Resident Credit Enter your credit from your PA 40 Line 22 Lewisburg Area 60400 Mifflinburg Area 60500 Milton Area 49500 Warrior Run 49800 Line 1 Compensation Page 10 Line 2 Interest Page 13 Line 3 Dividends and Capital Gains Distributions Page 14 Line 4 Net Income or Loss from the Operation of a Line 1 Enter the name and Social Security number for each beneficiary for whom a contribution was made to an IRC Section 529 plan during tax year 2012 Enter the amount of the contribution made for each beneficiary A taxpayer and spouse each may take a deduction for contributions up to a limit of $13 000 per beneficiary If you have more than 10 beneficiaries for which you are claiming a deduction please include a statement showing each beneficiary s name Social Security number and the amount of deduction claimed for each of the beneficiaries by the taxpayer and/or spouse LINE 10 OTHER DEDUCTIONS LINE 11 ADJUSTED PA TAXABLE INCOME LINE 12 PA TAX LIABILITY LINE 14 CREDIT FROM YOUR 2011 PA INCOME TAX RETURN LINE 15 2012 ESTIMATED INSTALLMENT PAYMENTS LINE 16 2012 EXTENSION PAYMENT LINE 17 NONRESIDENT TAX WITHHELD FOR NONRESIDENT PARTNERS AND SHAREHOLDERS OF PA S CORPORATIONS LINE 18 TOTAL ESTIMATED PAYMENTS AND CREDITS LINE 19a FILING STATUS LINE 19b DEPENDENT CHILDREN LINE 1a GROSS COMPENSATION LINE 1b UNREIMBURSED EMPLOYEE BUSINESS EXPENSES LINE 1c NET COMPENSATION Line 2 Add the amount of contributions made by the taxpayer and/or spouse and include the total in the appropriate columns LINE 2 INTEREST INCOME LINE 20 TOTAL ELIGIBILITY INCOME LINE 21 TAX FORGIVENESS CREDIT LINE 22 RESIDENT CREDIT LINE 23 TOTAL OTHER CREDITS LINE 24 TOTAL PAYMENTS AND CREDITS LINE 25 USE TAX LINE 26 TAX DUE LINE 27 PENALTIES AND INTEREST INCLUDING ESTIMATED UNDERPAYMENT PENALTY LINE 28 TOTAL PAYMENT DUE LINE 29 OVERPAYMENT LINE 3 DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS FROM MUTUAL FUNDS Line 3 Enter the amount of Medical Savings Account contributions allowed for federal income tax purposes included on Line 36 of your federal Form 1040 If you claim this deduction you must include a copy of the first page of your federal Form 1040 with your PA 40 return LINE 30 Enter the amount of Line 29 that you want as a LINE 31 Enter the amount of Line 29 that you want as a LINE 32 Enter the amount of Line 29 that you want to LINE 33 Enter the amount of Line 29 that you want to LINE 34 Enter the amount of Line 29 that you want to LINE 35 Enter the amount of Line 29 that you want to LINE 36 Enter the amount of Line 29 that you want to Line 4 Enter the amount of Health Savings Account con tributions allowed for federal income tax purposes included on Line 25 of your federal Form 1040 If you claim this deduction you must include a copy of the first page of your federal Form 1040 with your PA 40 return LINE 4 NET INCOME OR LOSS FROM THE OPERATION OF A BUSINESS PROFESSION OR FARM Line 5 Add the amounts from Lines 2 3 and 4 together for the taxpayer and/or spouse columns Line 5 They sold the retail store for a $6 000 loss Mary sold stock that she owned individually for a $9 000 gain Ben sold stock that he individually owned for a $3 000 loss On Line 5 they report a gain of $6 000 Mary s net gain is $6 000 ($9 000 less her half of the $6 000 loss) Ben s net loss is $6 000 (his $3 000 stock sale loss and his half of the $6 000 loss on the sale of the store) Since Ben's separate loss may not reduce Mary s gain they report a gain of $6 000 on Line 5 Line 6 Enter the total income included in Line 9 of your PA 40 calculated for the taxpayer and spouse separately LINE 6 NET INCOME OR LOSS FROM RENTS ROYALTIES PATENTS OR COPYRIGHTS Line 6 They jointly owned a rental property and realized a loss of $2 000 Mary was a partner in a rental partnership and her share of the partnership s loss was $1 000 Ben s PA S corporation realized a loss from its rental operations His share of the loss was $4 000 Mary's total loss was $2 000 and Ben's total loss was $5 000 On Line 6 they report the total loss of $7 000 (and fill in the oval) since they each individually realized a total net loss Line 7 Compare the amounts on Lines 5 and 6 for the taxpayer and spouse Enter the lesser of the amounts for each column LINE 7 ESTATE OR TRUST INCOME Line 8 Add the amounts from Line 7 for the taxpayer and spouse together Enter the Total Other Deductions amount here and on Line 10 of your PA 40 return LINE 8 GAMBLING AND LOTTERY WINNINGS LINE 9 TOTAL PA TAXABLE INCOME Line j Line l Total Office Supplies Enter the actual cost LINES 30 THROUGH 36 Lines a to h Enter the actual expenses you incurred if List and describe the property sold or otherwise disposed of for cash or for other property LOBBY STRAWBERRY SQ HARRISBURG PA 17128 0101 long term and short term gains (losses) or have provi sions relating to casualty losses sales to related parties and nonrecognition of gains (losses) under IRC Section 1031 (like kind exchanges) PA law does not allow the installment sale method of reporting for the sale of intangible property such as stock Loss on the Disposition of Property loss or losses from other business activities If reporting a LINE 5 NET GAIN OR LOSS FROM Loss Subtract Line 1 or 2 from Line 18 and fill in the oval NOTE: PA law does not permit losses from property rented where there is no intent to realize a profit LOSSES ON LINES 4 5 AND 6 ONLY LUZERNE LYCOMING Mail your Form REV 276 with or without a payment to: MAILING ADDRESSES Mailing your payment Please write (1) the last four digits of your SSN (2) "2012 PA V" and (3) daytime telephone number on your check or money order The department will need the last four digits of your SSN if your check becomes separated from your Form PA V Carefully Malpractice insurance premiums except when allowed in Part A Management fees Many of the new casinos in Pennsylvania offer voluntary withholding of PA personal income tax If you elected to have tax withheld from your winnings report withholding on Line 7 of your PA Schedule T You must also include a copy of your federal Form(s) W 2G with your return See the instructions for Line 13 on this page for additional information Married Filing Jointly for a married taxpayer The department will send a 2013 tax booklet in the names of the decedent and surviving spouse For 2013 the surviving spouse or other responsible person must file a separate 2013 tax return for the decedent as Deceased reporting any income that the decedent earned received or realized in 2013 Married Filing Separately for a married taxpayer The department will send a 2013 PA tax booklet in the name of the decedent and a separate 2013 PA tax booklet to the surviving spouse On the 2013 return the surviving spouse or other responsible person must file a signed separate return for the decedent as Deceased reporting any income that the decedent earned received or realized in 2013 Married taxpayers can file a joint tax return for convenience only If you and your spouse jointly own income producing property you must each report your share of the income (loss) Income producing property includes savings accounts businesses securities and real estate Spouses usually equally divide income from jointly owned property may offset your own income in this class against your own MCKEAN Medical Savings Account and Health Savings Account Contributions MEMBERS AND SHAREHOLDERS ments detailing property maintenance and ments if reported for federal income tax purposes Income from charitable gift annuities included in federal gross taxable income as ordinary or capital gain income MERCER Midd West 55500 Selinsgrove Area 55710 Middletown Area 22600 Millersburg Area 22610 Steelton Highspire 22800 Susquehanna Township 22830 Susquenita 50600 Upper Dauphin Area 22900 Williams Valley 54880 MIFFLIN Mifflin County 44460 Mount Union Area 31600 MILITARY FAMILY RELIEF ASSISTANCE PROGRAM Military Pay Members of the Armed Forces Military personnel should use the school district code for the domicile of their spouse (if the spouse lives in Pennsylvania) their parents (if entering the military while they are domiciled in Pennsylvania) or the code for the school district in which they live while on federal active military duty while stationed in Pennsylvania (if a PA resident) Military Spouses Residency Relief Act Minors PA law does not exempt a minor from the above requirements to file a PA tax return even if claimed as a dependent on a federal return A parent must file a return on behalf of the minor child in such circumstances miscellaneous expenses you listed FILING TIP: If you do not have expenses for your office or work area (Part D) moving (Part E) education Money Market Funds Mutual Funds and Other Investment Companies MONROE MONTGOMERY MONTOUR Mortgage interest If you have a mortgage on your rental property enter the amount of interest you paid for the current year to banks or other financial institutions moving anywhere other than within or into Pennsylvania Multiple Schedules Multiply Line 11 by 3 07 percent (0 0307) Mutual savings banks and cooperative banks even if reported as dividends Name(s) verify that your name is correct on the Form PA V If the name on your Form PA V is not correct you may use your Form PA V The department will obtain your correct name from your PA tax return Necessary to enable you to properly perform the duties of your employment; and need to file over the telephone To find out if you Neither of you is individually claiming one or more of the credits on PA Schedule OC (see Page 20); and Neither of you is individually liable for the payment of child or spousal support or another liability to the PA Department of Public Welfare Net Expense or Reimbursement Net Gain (Loss) from the Sale of Property acquired before June 1 1971 Determine your gain (loss) on the sale of June 1 1971 property on Form REV 1742 PA Schedule D 71 Net Gain (Loss) Total Column (f) and enter the net amount You may offset gains (losses) for Line 2 Net Gain or Loss from the Sale Exchange or Disposition of Property Net Income (Loss) Add the net income (loss) amounts from Lines 19 and 20 for each property If a net loss please fill in the oval NOTE: Pennsylvania does not follow Net Income (Loss) From Rents And Royalties Line 6 17 Net Income (Loss) From The Operation Of Net Income or Loss from Rents Royalties Patents and Copyrights Net Income or Loss from the Operation of a Business Profession or Farm Net PA Tax Liability Subtract Line 13 from Line 12 Net Partnership and PA S Corporation Gain (Loss) Report the taxable gain or loss from your PA Schedules RK 1 or NRK 1 If PA Schedules RK 1 or NRK 1 are not provided enter the amount from the federal Schedule K 1 Include a statement providing the entity name and FEIN along with the gain (loss) by entity if gain (loss) from any pass through entity is reported on this line Net Rent and Royalty Income (Loss) Add Lines 21 and NEW CASTLE Non Qualified Deferred Compensation Programs Nonresident income Part year residents and nonresi dents must complete this line Enter the total of all Nonresident of Pennsylvania You must report all taxable income you earned received and realized from PA sources Nonresident Partner and/or Shareholder NONRESIDENT PARTNERS AND NONRESIDENT SHAREHOLDERS OF PA S CORPORATIONS Nonresidents and Part Year Residents Nonresidents or part year residents who did not reside in the state as of Dec 31 2012 should enter 99999 in the school district code field Nontaxable educational assistance Include the total value of all nontaxable scholarships fellowships and stipends as well as the amount of any federal and state educational grants received Do not include student loans Also include the value of tuition reductions offered as part of your employer s benefit plan Nontaxable interest dividends and gains and/or annualized income Include income and gains from investments in direct obligations of the federal govern ment Pennsylvania and political subdivisions of Pennsylvania Include the nontaxable portion of gain from the sale of any property Include nontaxable income received as a beneficiary of an estate or trust For decedents only: in addition to any annualized income for nontaxable interest dividends and gains include the difference between the total annualized taxable income and the PA taxable income from Line 1 above Nontaxable military income This amount represents the difference between the total military income you earned and the amount you report on your PA tax return Do not include combat zone pay and hazardous duty pay Nontaxable payments to your employer s cafeteria plan for hospitalization sickness disability or death supplemental unemployment or strike benefits NORRISTOWN NORTHAMPTON NORTHUMBERLAND not a resident of Pennsylvania See Page 40 of the not allowable See the PA PIT Guide for additional information Note that this worksheet must be used to calculate use tax due on individual purchases over $1 000 NOTE: Certain withdrawals and distributions not used for educational purposes are taxable See the instructions for PA Schedule A on Page 30 for additional information NOTE: If claiming more than nine (9) dependent children go to the PA PIT Guide on the department's website NOTE: If you are using a military address please use your APO or FPO address EXAMPLES: NOTE: If you do not have a Form W 2 or a federal substitute W 2 Form 4852 you must submit evidence of your PA compensation and tax withheld by providing pay stubs and a statement identifying your employer and the reason you do not have a Form W 2 Please submit legible photocopies Keep your original documents NOTE: If your employer includes your payments for sickness disability and/or on the job injuries in Box 16 of your Form W 2 provide a statement from your employer verifying the amount of these payments NOTE: Please call ahead to verify a district office s address and its services or visit the department s website at NOTE: These PA schedules are not in this booklet You can obtain the schedule(s) you need from one of the Forms Ordering Services on Page 3 NOTE: When added together the amounts reported sepa rately for the taxpayer and/or spouse for Line 6 of PA Schedule O should equal Line 9 of the PA 40 NOTE: You may not claim a deduction for a rollover of an account from one IRC Section 529 plan into another IRC Section 529 plan You also may not claim a deduction for the changing of beneficiaries within an account for an IRC Section 529 plan NOTE: You must include PA tax exempt dividend income in Eligibility Income for Tax Forgiveness purposes NOTE: You must include PA tax exempt interest in Eligibility Income for Tax Forgiveness purposes Obligations of certain agencies instrumentalities and territories of the U S government; and obligations: Of a type specifically required by the employer to be purchased as a condition of continued employment; and of supplies that you use exclusively for of the Form(s) 1099 Form(s) 1099 R and other statements showing the income that you listed in Part B Do of your employment? If your employer provides a suitable work area or you answer one or more of the above questions NO you cannot claim any office or work area expenses on Line 21 you must complete and include PA Schedule SP See the instructions beginning on Page 34 for additional information On PA Schedule D report gains (losses) from selling: on which you are using the standard mileage rate method Commuting Expenses You cannot deduct the costs of public transportation or driving a car between your home and your main place of work These are personal commuting expenses You cannot deduct commuting expenses no matter how far your home is from your regular place of work Commuting costs between different jobs for different employers are also not allowable one of the Forms Ordering Services on Page 3 One of you is a PA resident and the other is not However you can file jointly if you both elect to file as PA residents and meet all other requirements for filing jointly See Married Filing Jointly on the previous page Online Customer Service Center at www revenue state pa us ONLINE SERVICES Optional: Deduct sales tax on acquired property as an expense currently rather than add it to the basis of the property as required for federal purposes Or Copyrights 18 Signature And Date 23 Small Tools And Supplies 27 Social Security Number(s) 5 State Income Tax Levy Program for or Copyrights Page 17 Line 7 Estate or Trust Income Page 18 Line 8 Gambling and Lottery Winnings Page 18 or country you must include the complete address of the property in the address field Or Disposition Of Property Line 5 16 Ordinary customary and accepted in the industry or occupation in which you work; Ordinary dividends paid by a mutual fund or a registered investment company that the fund/company statement designates as being exempt interest dividends Use the percentage of the total dividend income that is from exempt PA and exempt federal obligations to determine the tax exempt portion of the dividend income Organ and Tissue Donation Awareness Trust ORIGINAL AND AMENDED RETURN MAILING INSTRUCTIONS Original PA 40 Do not mail a photocopy of your PA 40 or a copy of your electronic PA tax return other apportionable expenses from Lines f Other expenses Please itemize Other Federal Legislation Other income described in the PA income classes (Classify) Other interest Generally to determine the interest expense allocable to your rental activities you must have records to show how the proceeds of each debt were used Pennsylvania does not follow federal rules regarding prepaid interest Other Investment Companies 14 Moving Expenses 29 Net Gain (Loss) From The Sale Exchange Other Penalties PA law imposes a $500 penalty on a taxpayer that files a frivolous return A frivolous return is one that: OTHER SERVICES Otherwise do not submit your Form(s) W 2 However the department has the statutory authority to require your actual Form(s) W 2 OTTAWA ON K1A 0B1 5300 BONN 1 out only part of your home or other property deduct only those expenses (or percentages of expenses) that apply to the rented part overnight traveling status (e g meals while working late) and Overview: PA taxable compensation includes but is not limited to: salaries; wages; tips; gratuities; commissions; bonuses; incentive payments; vacation and holiday pay; employer student loan payments; student loan debt forgive ness for entering certain fields or professions; distributions from nonqualified deferred compensation plans; certain early distributions from retirement plans; and termination pay The amount your employer reports in Box 16 of your Form W 2 shows your PA taxable compensation If you receive Forms 1099 or other statements your PA taxable compensation is the gross amount that you received for performing services Ownership interests in partnerships and business enterprises; PA 40 is less than the actual purchase amount PA 40 Line 9 Total PA Taxable Income City of Philadelphia Allegheny County Remainder of PA PA 40 Tax Form PA allowable employee expenses are not always the same as allowable federal business expenses Read the instructions beginning on Page 26 You must be able to substantiate travel expenses as to time place and business purpose PA AND FEDERAL SCHEDULES PA BREAST CANCER COALITION S BREAST AND CERVICAL CANCER RESEARCH FUND PA DEPARTMENT OF REVENUE PA Income Taxes 23 Undistributed Income 12 Union Dues 27 Unreimbursed Employee PA law allows three deductions against income Deductions are allowed for: Medical Savings Account contributions; Health Savings Account contributions; and IRC Section 529 Qualified Tuition Program contributions If you are claiming a deduction for any of these contributions you made you must enter a code for the type of deduction you are claiming in the block provided next to the line description Descriptions of the four codes that can be entered in that block are as follows: PA law does not allow standard deductions deductions for personal exemptions itemized deductions or deductions for personal expenses PA law does not have federal expense and percentage accounting limitations and thresholds PA law does not permit a Resident Credit if you are a share holder in a subchapter S corporation if that corporation elected not to be taxed as a PA S corporation See Page 15 See the instructions for PA Schedule G L for additional information PA Schedule G L is not included with this booklet and may be obtained by using one of the Forms Ordering Services on Page 3 PA law does not permit deductions or exemptions for contri butions to retirement plans investments in annuities mutual funds money market funds and other personal contributions even when deducted or exempt for federal purposes Therefore Pennsylvania will not tax your distributions or the payments you receive until you have recovered an amount equal to your contributions Maintain your records of your contributions If you receive an early taxable distribution from a retirement plan and you do not have records of your contributions consult your plan administrator PA law imposes its income tax on nonresidents on all gambling and lottery winnings from PA sources except prizes from playing the Pennsylvania Lottery PA law imposes its income tax on PA residents on all gambling and lottery winnings from any source except prizes from playing the Pennsylvania Lottery As a PA resident you must include lottery winnings from other states and countries PA law recognizes a loss only on a transaction entered into for profit and only in the year in which an identifiable event closed and completed the transaction and fixed the amount of the loss so there is no possibility of any eventual recovery Do not report a loss on the sale of property that you didnot acquire for profit such as a personal car furniture or a qualifying sale of your principal residence PA law taxes part year residents on all income from all PA Payment Voucher (Form PA V) PA Personal Income Tax Guide (PA PIT Guide) PA PIT And IRS Rules 9 PA PIT Guide found on the department s website for more PA PIT Liability The department will apply your overpayment to any outstanding PA personal income tax liability from a previous tax year PA Resident Partner and/or Shareholder PA Resident Shareholder and/or Partner of an S Corporation or Partnership from Another State PA Resident Shareholders in a Subchapter S Corporation that is not also a PA S Corporation PA Resident Shareholders in Another State's S Corporation that is not also a PA S Corporation PA residents report military pay earned while in Pennsylvania or earned when not on active duty status as taxable compen sation on Line 1a Active duty military pay is not taxable for Pennsylvania purposes if earned by a PA resident serving on full time active duty (or federal active duty for training) outside the state In addition Act 182 of 2006 expanded the definition of active duty military income to include income from the U S government or the Commonwealth of Pennsylvania for active state duty for emergency within or outside the commonwealth This addition includes duty ordered pursuant to 35 PA C S Ch 76 (relating to the Emergency Management Assistance Compact) However other income is still taxable Please see the information for Combat Zone and Hazardous Duty Service on Page 38 PA residents who are students attending college inside or outside of Pennsylvania should use the school district code for the physical address of the domicile or principal residence of their parents PA S Corporation Partners Members And Shareholders 15 Payment Options 23 & 24 Penalties And Interest Line 27 22 & 39 Pennsylvania Tuition Account Program (TAP) 10 Preparer Or Company Name 23 Privacy Notification Social Security Numbers 6 Qualified IRC Section 529 Plans Line 10 19 Reciprocal Compensation Agreement States 11 Reciprocal State Resident With A Refund 11 Refund Check Line 30 23 Refund Offsets 22 & 23 Reimbursable Expenses 11 PA SCHEDULE A (LINE 2) PA SCHEDULE B (LINE 3) PA SCHEDULE D (LINE 5) PA SCHEDULE E (LINE 6) PA Schedule E follow the instructions on the schedule PA Schedules G R (with G S/G L) and T separate schedules for each taxpayer PA Schedule G R If you are claiming a resident credit for taxes paid to other states or countries you must include this schedule immediately after the PA 40 DO NOT include any extension forms W 2 forms or any other schedules or statements before this schedule when it is required Otherwise your credit may not be granted PA SCHEDULE J (LINE 7) PA SCHEDULE O (LINE 10) PA Schedule O see the instructions beginning on Page PA Schedule OC a taxpayer and spouse must file separate PA 40 tax returns if one or both are claiming any credits on this schedule PA Schedule OC and the required supporting documents when claiming any of the restricted tax credits that PA law allows PA SCHEDULE SP (LINE 21) PA Schedule SP see the instructions beginning on PA SCHEDULE T (LINE 8) PA SCHEDULE UE (LINE 1b) PA Schedule UE a separate schedule for each employer or job PA Schedule UE Side 1 PA Schedule UE Side 2 PA Schedule W 2S or photocopies of your Form(s) W 2 (be sure the information is legible) or your actual Form(s) W 2 Use Part B of this schedule to list and total your other taxable compensation You must submit photocopies of your Form(s) 1099 R and other statements that show other compensation and any PA tax withheld NOTE: Do not include copies of Form(s) 1099 DIV and 1099 INT unless the forms show PA income tax withheld PA SCHEDULE W 2S WAGE STATEMENT PA Schedule(s) RK 1 PA Schedule(s) NRK 1 If you did not receive PA schedules then submit federal Sched ule(s) K 1 See Partnership Limited Liability Company and PA S Corporation Partners Members and Share holders on Page 15 PA Schedules A B and J these schedules do not show any losses or expenses PA Schedules C C EZ and F separate schedules for each commercial activity unless both own each of the businesses or farms jointly PA Schedules D 1 and D 71 separate schedules for each taxpayer PA Schedules D must submit a separate PA Schedule D for you and your spouse reporting income unless all the gains and losses are joint PA Schedules RK 1 and NRK 1 PA Tax Liability Enter the amount of your tax due from your PA 40 Line 12 If filing an amended return you must use the amount from Line 12 of the amended PA 40 PA taxable dividend income does not include: PA taxable income includes interest from: PA Taxable Income On their jointly filed 2012 tax return they report total taxable income of $38 000: Line 4 of $32 000 and Line 5 of $6 000 not taking into consideration their Line 6 loss of $7 000 PA Withholding on Gambling and Lottery Winnings padirectfile you can report most types of income and claim dependent children for Tax Forgiveness To file using padirectfile you will need your SSN and one of the following: last year s tax liability or PA Driver s License/Identification Card number Visit the Revenue e Services Center at www revenue state pa us to file Page 34 for when to include this schedule Palmerton Area 13650 Panther Valley 13660 Weatherly Area 13900 Part A Direct Employee Business Expenses Part A Filing Status Part A Property Description For rental real estate enter the street address city or town and state Indicate whether the property is for profit property or not PA law generally follows the IRC Section 280A when you rent or lease property such as a vacation home and do not intend to realize a profit You may only deduct your rental expenses up to your rental income and you may not use a loss to reduce other rental income If you rent or lease your property to realize a profit but do not operate the rental property as a business activity you may offset losses against other rental or royalty income For other tangible personal rental property enter the type of property Enter the source of the royalty patent copyright or similar property income PART A Use Part A of this schedule to report your PA taxable compensation from your Form(s) W 2 Part B Business Travel Expenses Part B Dependent Children Part B Enter amounts under the corresponding initial of the property from Part A Indicate the ownership of the property: PART B Use Part B of this schedule to list all the sources of non employee and other compensation as well as all distributions from eligible Pennsylvania retirement plans all distributions from IRAs all distributions from qualified deferred compensation plans all distributions from annuities purchased from commercial insurance or mutual companies all distributions from employee stock ownership plans (ESOP) all distributions from endowment contracts and all distributions from charitable gift annuities Report your PA taxable and nontaxable compensation and any PA tax withheld from that income You must include Forms 1099 R 1099 MISC and other documents reporting the income shown on this schedule Do not include Forms 1099 MISC for income reported elsewhere on PA Schedule C Include PA taxable and nontaxable amounts from your Forms 1099 that show pensions retirement plan distributions executor fees jury duty pay and other miscellaneous compensation Part C Eligibility Income Part C Miscellaneous Expenses Part D Calculating Your Tax Forgiveness Part D Office or Work Area Expenses Part E Moving Expenses Part F Education Expenses PART I IRC Section 529 Qualified Tuition Program Contributions PART II Other Deductions and Limitations Part Year Resident of Pennsylvania You must report all taxable income you earned received and realized from all sources for the time you were a PA resident and report the PA taxable income you earned received and realized from sources within Pennsylvania for the time you were not a PA resident Read the instructions for each PA income class below and on Pages 10 through 19 Part year residents who resided in Pennsylvania as of Dec 31 2012 should enter the school district code of the physical address of their domicile or principal residence PARTNERSHIP LIMITED LIABILITY COMPANY Paying With Form PA V Paying Without a Form PA V Payment Carefully enter the amount of your payment Make the check or money order payable to: PA DEPT OF REVENUE Do not send cash PAYMENT ENCLOSED PAYMENT OPTIONS Payments for injuries received while working and damages received whether by suit or otherwise for personal injuries Payments received as a foster parent for providing in home care for foster children Payments received under federal trade assistance trade adjustment allowances and alternative adjustment assistance Payments received under workers' compensation acts occupational disease acts or similar legislation; including Heart and Lung Pension Payments you receive as an inducement to retire early are taxable compensation Such payments are not part of a PA qualifying retirement program Your employer includes these incentive payments on your Form W 2 and withholds PA tax Even when you move out of Pennsylvania these incentive payments remain taxable to Pennsylvania Penalties may be abated only if the taxpayer can show reasonable cause for abatement in his/her petition for reassessment of the penalty To be timely the petition must be filed with the department s Board of Appeals within 90 days of the mailing date of the penalty assessment Penalty and Interest Penalty for Uncollectible Funds PA tax law imposes an additional penalty on funds submitted via check and not paid on presentment or an electronic funds transfer (EFT) payment and not credited on transmission The penalty is 10 percent of the face amount of the check or EFT payment The penalty imposed cannot exceed $1 000 nor be less than $25 PENNSYLVANIA Pennsylvania allows a maximum deduction of $13 000 per beneficiary per taxpayer for IRC Section 529 Qualified Tuition Program contributions for 2012 A taxpayer and spouse each may deduct $13 000 per beneficiary For additional information on deductions and limitations see the instructions for PA Schedule O beginning on Page 33 Pennsylvania Does Not Allow The Following Business Expenses Even If Allowed for Federal Purposes: Pennsylvania follows federal rules for these deductions If you can take these deductions on your federal return and you wish to claim them for PA purposes you must complete PA Schedule O and include a copy of page one of your federal Form 1040 with your PA income tax return You may not claim these deductions if you cannot claim them for federal income tax purposes Please refer to the PA PIT Guide for additional information The amount you report as deductions cannot exceed the federal limits Pennsylvania has agreements with Indiana Maryland New Jersey Ohio Virginia and West Virginia Generally under these agreements one state will not tax a resident of the other state on compensation that is subject to employer withholding These agreements apply to most types of W 2 compensation earned while a resident of the reciprocal compensation agreement state It does not apply to miscel laneous and non employee compensation compensation earned while a PA resident and received while a resident of the reciprocal compensation agreement state or compen sation paid to Ohio resident shareholder employees with a 20 percent or greater interest in a PA S corporation who worked or performed services in Pennsylvania in 2012 Pennsylvania income tax forms schedules brochures Pennsylvania Lottery tickets from other PA taxable gambling and lottery winnings Pennsylvanians serving in combat zones or qualified hazardous duty areas designated by the President of the U S are given the same additional time to file and pay their PA income tax returns and make payments as allowed for federal income tax purposes The deadline is automatically extended to 180 days from the last day of service or the last day of continuous hospitalization for injury incurred in one of these areas Print COMBAT ZONE at the top of your return Mail your return and military orders to: Pennsylvanians serving in combat zones or qualified hazardous duty areas have the same additional time to file their state income tax returns and make payments as they have for federal income tax purposes The due date is automatically extended for 180 days from the last day of service or the last day of continuous hospitalization for injuries incurred in one of these areas See Page 38 for more information Percentage of Tax Forgiveness Find your percentage using your dependents from Part B Line 2 and your Eligibility Income from Part C Line 11 and the appropriate Eligibility Income Table Enter the percentage as a decimal on Line 15 PERRY Personal use of an employer s owned or leased property and/or services at no cost or at a reduced cost Persons Not Required to File Federal Income Ta x Returns If you are not required to file a federal income tax return you may still be required to file a PA personal income tax return because the requirements for filing a return in Pennsylvania are different than federal requirements You must file a return in Pennsylvania if any of the situations described above apply See Chapter 4 Who Must File a PA Tax Return of the PA PIT Guide found on the department s website for more information Persons residing in a nursing home or other care facility who are planning to return to their principal residence after a temporary stay in such facilities should enter the school district code for the physical address of their prin cipal residence and not the nursing home or care facility Persons who reside in a nursing home or care facility on a permanent basis and have made the decision to do so (who are or were mentally capable of making this decision) should use the school district code for the physical address of the nursing home or care facility Persons who use a mailing address other than the physical address of the domicile or principal residence should enter the school district code for the physical address of their domicile or principal residence Persons who work outside of Pennsylvania but maintain a permanent place of abode inside Pennsylvania during their absence from Pennsylvania or persons who plan to return to Pennsylvania after a temporary relocation to another state or country who are still considered PA residents should use the school district code for the physical address of their permanent place of abode or the school district code of their physical address prior to moving out of Pennsylvania PHILADELPHIA PHILADELPHIA Philadelphia City 51500 Please read the instructions on Page 40 Nonresidents and part year residents use the same PA 40 form as PA residents Please see the CAUTION statements in the instructions for Schedule C Schedule E and Schedule UE for additional in formation PO BOX 280507 PO BOX 280600 POTTER Powerball and Mega Millions Prepare a copy before submitting your return Preparer/Company Name Telephone Number PTIN and Firm FEIN principles and practices of the accounting profession Report your net income (loss) from an unincorporated business or profession on PA Schedule C File a PA Schedule C or a PA Schedule F using your separate books and records for PA purposes You may be able to submit a PA Schedule C EZ if you file a federal Schedule C EZ Print a PO number if the post office delivers to Print in black ink Print one number or letter in each box Print your apartment number suite number room Print your correct street address Print your name last first middle initial and suffix on the correct lines Print your PO Box on the second line Privacy Notification Professional License Fees Malpractice Insurance and Fidelity Bond Premiums Trade professional or occupational licenses or fees required as a condition of employment are allowable business expenses Include malpractice insurance and fidelity bond premiums where required by law or by your employer Program Properties held for investment including rental properties; Provide all the requested information for each child Providing housekeeping service room service valet parking decorating assistance delivery services transportation services and concierge services are significant services PRSRT STD Qualified Tuition Program deductions for both taxpayers is filed schedules reporting the income on a separate basis for each taxpayer should be included so that the department may calculate the income limitations Read the oath before you sign and date your return If Married Filing Jointly a spouse must also sign and date the return If you are responsible for the affairs of a minor disabled person or a decedent who could not prepare his or her own PA tax return you must sign to file a valid tax return READING Reasonable in amount and not excessive; Received a fixed mileage allowance or a per diem allowance for the allowable business expense and neither you nor your employer included the allowance in your compensation; or reciprocal agreement state and your employer is not withholding PA tax you must make PA estimated tax payments If you made 2012 estimated payments using department preprinted forms the department will send you 2013 forms If you do not receive your forms by April 15 2013 contact the department If you made your estimated payments using software produced forms or via the Revenue e Services Center the department will not send you 2013 forms Reciprocal Compensation Agreement States Recorded Tele Tax Service on federal tax topics or tax refund information is available by calling: 1 800 829 4477 reduce the other spouse s gains In the case where separate Schedule Ds are required and spouses must also report the sale of jointly owned property each spouse must show his/her share of the sale on their separate PA Schedule D refund check Refund Offsets Refunds for Breast and Cervical Cancer Refunds from Amended Returns Regarding: COMBAT ZONE Reimbursable Expenses/Cash Reimbursements for Personal Employee Expenses Reimbursements If your employer included your reimbursement in PA taxable compensation on your Form W 2 do not enter that reimbursement here If your employer did not include your reim bursement on your Form W 2 enter the amount you received from your employer relocating to a new job or workplace less than 35 miles farther than your old commute to work; or REMEMBER: Even after you move from Pennsylvania you must report any PA taxable income you earned received or realized from PA sources REMEMBER: When you use one of the electronic filing options do not mail a paper copy of your tax return keep it for your records REMEMBER: You also have the option to pay using a credit/ debit card or through electronic funds transfer REMEMBER: You may not offset income in one PA income class with a loss in any other PA income class You cannot carry forward or carry back gains or losses to other tax years REMINDER: If you owe $1 or less you do not have to submit REMINDER: The department will not issue a refund for less than $1 Remove the labels from the envelope flap Rent or Royalty Income (Loss) from PA S Corporations and Partnerships For Line 22 enter the rent and royalty income (loss) amounts from your PA Schedule(s) RK 1 or NRK 1 If PA Schedules RK 1 or NRK 1 are not provided enter the amount from the federal Schedule K 1 Include a statement providing the entity name and FEIN along with the income (loss) by entity if rent or royalty income (loss) from any pass through entity is reported on this line Rent received Enter the gross rent from the rental of real estate or other tangible personal property (including personal property leased with real estate) you held for investment or speculation Include income received for renting a room or other space If you received services or property as rent report the fair market value of such services or property as rental income Rental activity may be a business activity if meeting the conditions described below If in business you report your net profit (loss) on a PA Schedule C If not in the business of rents you report your rental activity on a PA Schedule E on Line 6 You report rental business when: Rental and Royalty Allowable Expenses Rental Income (Loss) on Line 6 or Net Gain (Loss) on Line 5 Rental Income (Loss) vs Net Gain (Loss) 18 Residency Status: Rental income includes the amounts you receive for the use of or the right to use your real or personal property Renting Part Of Your Home 32 Rental Income (Loss) vs Business Income (Loss) 16 rents royalties patents copyrights and similar property See the PA Schedule E instructions beginning on Page 32 for the allowable expenses You may not deduct expenses for your own labor capital investment or capital improvements Repairs Deduct the cost of repairs made to keep your property in good working condition Repairs (fixing a broken lock or painting a room) generally do not add significant value to the property or extend its life Improvements that increase the value of the property or extend its life (such as replacing a roof or renovating a kitchen) must be capitalized You cannot expense such costs in full in the year paid or incurred Report all dividend income received or credited during 2012 You do not have to submit your Forms 1099 DIV and other statements If your total dividend income (taxpayer spouse and/or joint) is more than $2 500 you must complete and submit PA Schedule B See instructions for this schedule beginning on Page 30 You cannot substitute a Federal Schedule B for PA Schedule B Report all income (loss) from business farm and business Report all PA taxable interest income received or credited during the year Generally Forms 1099 INT and similar statements from financial institutions show the interest amount You do not have to submit these forms and state ments Include interest income from personal savings and checking accounts insurance contracts obligations of other states (not Pennsylvania) and investments If your total interest income (taxpayer spouse and/or joint) is more than $2 500 complete and submit PA Schedule A See the instructions on Page 30 Report all reimbursements and allowances paid by your employer as compensation unless you meet all three of the following requirements: Report all sales exchanges and dispositions of property using PA income tax rules and your PA income tax basis in the year in which the transaction occurred If a federal election allows a deferral to a different tax year or a deemed sale you may not use that election for PA purposes Report all your PA taxable income and claim all your allowable PA credits? Report capital gains distributions from your mutual funds from Box 2a of your 1099 DIV as PA taxable dividend income even though you report such distributions as capital gains on federal Schedule D Report capital gains distributions received from mutual funds as PA taxable dividend income even though you report such distributions as capital gains on federal Schedule D See Page 14 for more information Report passive rental/royalty loss in full rather than carry it over to future years Report the gain (loss) realized on the sale exchange or disposition of the above obligations if the original issue date was on or after Feb 1 1994 Report the total income (loss) from all PA Schedules E and all PA Schedules RK 1 or NRK 1 Generally you must use PA Schedule E You may use federal Schedule E if using only Part I and with the following adjustments: Report your gain (loss) from each sale exchange or disposi tion of any kind of intangible property and any real or tangible property Report your share of the gains (losses) from a partnership or PA S corporation in which you are a member Report your total net gains (losses) on PA Schedule D Report your PA taxable winnings on PA Schedule T Spouses must report their winnings separately The payers of prizes provide the department with copies of the federal Forms W 2G that they submit to the IRS Reporting gains from the sale of intangible personal property such as stocks bonds partnership or other ownership interests; or Reporting Income from PA Schedules RK 1 and NRK 1 and Federal Schedule K 1 REPORTING NET INCOME GAINS AND Reporting Rental Income (Loss) as Business Activity on Line 4 or as Rents on Line 6 Reporting transactions where the object is the lending of money or the rendering of services Reproducing PA Returns and Schedules requested the credit be carried over to your 2012 PA estimated account and you subsequently requested a refund or if you received a refund of your carryover credit from the department Also if your account was adjusted by the depart ment or the department assessed you for a previous year s underpayment do not claim the credit requesting a refund within nine months of the close of the statute of limitations for a tax period (three years from the original or extended due date of the return) A Petition for Re fund (Form REV 65) should be filed for amendments request ing refunds during that time period to protect appeal rights in the event the request for refund is denied A Petition for Refund may not be acted upon by the Board of Appeals if an amended return refund is denied and the Petition for Refund is filed after the three year period has ended Research fund Research Fund 41 Label Correct Or Incorrect 8 Language Services 3 Lease With An Option To Buy 18 Loss On The Disposition Of Property 16 Mailing Instructions 24 Military Family Relief Assistance Program 41 Military Pay 37 Military Spouse Residency Relief Act 37 Miscellaneous Expenses 28 Money Market Funds Mutual Funds And Residency for PA Personal Income Tax Purposes Residency Status Resident of a Reciprocal State Filing for a Refund resident or former resident of Pennsylvania payments you receive from an Early Retirement Incentive Plan Deferred Compensation Plan or exercising of stock options may be taxable in whole or in part to Pennsylvania if you earned any of these amounts while working in Pennsylvania You may be required to substantiate the number of days worked in Pennsylvania or amount of time spent in Pennsylvania to determine the taxable portion in Pennsylvania result PA law requires straight line depreciation to be taken on these assets Retired or retainer pay of a member or former member of a uniform service computed under Chapter 71 of Title 10 U S Code as amended Retirement Pensions and Deferred Compensation Retirement Pensions And Deferred Compensation 11 Revenue District Offices 4 Revocable And Grantor Trusts 18 Roth IRA Rollover 12 Sale Of A Principal Residence 17 Schedules: return and refund and update your address return directly to the department With return over the Internet and transmit the REVENUE Revenue e Services Center at www revenue state pa us Revest in himself/herself the legal title to the corpus of Review the instructions beginning on Page 26 to determine if you can deduct expenses from your PA taxable compensation Follow the instructions PA law does not follow federal law for allowable employee business expenses EXAMPLE: You may deduct 100 percent of your PA allowable expenses on the PA Schedule UE If claiming expenses on PA Schedule UE briefly describe your occupation or job in the space pro vided If your spouse also has expenses describe his or her occupation or job on a separate PA Schedule UE Review Your Return Revocable Trusts RK 1 Line # RM 200 SAMTERS BLDG 101 PENN AVE SCRANTON PA 18503 1970 Roth IRA Rollover You do not have to pay PA tax on the difference between the amount distributed from your traditional IRA and your previous contributions: Round income loss deductions and credit amounts to the nearest dollar? Rounding Numbers On the PA 40 form and schedules show money amounts in whole dollars Eliminate any amount less than $0 50 and increase any amount that is $0 50 or more to the next highest dollar Royalties received Enter the gross royalties from oil gas mineral properties and other property Royalty income includes the amounts you receive for the extraction of coal oil gas or other minerals in place and the amounts that you receive for the use of your patents copyrights secret processes formulas goodwill trademarks trade brands franchises and similar property rules for travel expenses for education CAUTION: You may not deduct costs of travel as educa tional expenses by claiming that the travel itself constitutes a form of education SAFE: Regardless of the option you choose the department protects your information with the latest security safeguards EASY: The systems perform math calculations for you FAST: The department processes refunds in half of the time compared to a paper return DIRECT DEPOSIT: You can have your refund deposited directly into your checking or savings account Direct deposit is not available with a paper PA tax return CONFIRMATION: Upon filing with padirectfile or TeleFile the department immediately gives you a confirmation number as proof that you filed When filing Fed/State e file the de partment sends an acknowledgement directly to you your tax professional or Electronic Return Originator (ERO) Sale of Your Principal Residence Sales of inherited property The basis of inherited property is its fair market value at the date of death Schedule D Line 6 Schedule K 1 you must classify the income or loss according to the instructions for each PA income class If you have PA source income from a partnership or limited liability company investment these entities are required to file form PA 20S/PA 65 and provide you with an NRK 1 from the entities Partnerships and limited liability companies can be assessed a penalty for failure to file these returns Schedule OC may not file a joint return and are re quired to file separate returns School Code and School District Name School Code And School District Name 6 & 7 42 & 43 Selling Mineral Interests Patents SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHUYLKILL SCRANTON SECOND FL 15 W THIRD ST GREENSBURG PA 15601 3003 SECOND FL STONY CREEK OFFICE CENTER 151 W MARSHALL ST NORRISTOWN PA 19401 4739 Section 179 expense is phased out for purchases in excess of $200 000 See Chapter 4 Who Must File a PA Tax Return of the See Page 14 for additional information on where to report income from charitable gift annuities See Page 23 for instructions and payment IMPORTANT: Do not staple your check or money order to your Form PA V or your PA 40 form If you do not have a Form PA V see Page 24 See the PA PIT Guide Chapter 16 for additional information regarding the reporting of the information for all other lines on the PA Schedules RK 1 and NRK 1 See the PA PIT Guide for more information about reporting income from a federal Schedule K 1 Selling Mineral Interests Patents or Copyrights If you gave up all rights to mineral interests patents or copyrights the amounts you received are considered payments for the sale or exchange of property Report such income on PA Schedule D Separated and lived apart but for less than the last six months of 2012; or Separated and living apart at all times during the last six months of 2012; or Separated means: Services for Taxpayers with Special Hearing and/or Speaking Needs: 1 800 447 3020 (TTY) Sick pay and disability benefits including payments by third party insurers for sickness or disability (does not include amounts paid as sick leave) Sick pay and disability benefits that represent regular wages such as sick leave pay (Line 1a) Side 1 of this schedule is for the most common expenses claimed on PA income tax returns Significant Services Single for a single taxpayer The department will mail a 2013 PA tax booklet in the name of the decedent The responsible person will then have to file a 2013 PA tax return for the decedent using the Deceased (D) filing status and report any income that the decedent earned received or realized in 2013 SNYDER Social Security benefits and/or Railroad Retirement benefits Social Security Number(s) Carefully write your SSN and your spouse s SSN if married in the boxes provided on your PA 40 form You must enter your SSN even if using your label Please double check your SSN Social Security number(s) print your SSN and your spouse s SSN on your Form PA V in the same order as they appear on your tax return Sole proprietors partners shareholders or other self employed individuals should not use PA Schedule UE to claim expenses Some examples of the record keeping for slot or electronic gaming machines may include a record of the machine number and all winnings by date and time the machine was played as well as statements of actual winnings payment slips or other documentation provided by the gambling establishment Record keeping for harness or horse racing includes a record of the races amounts of wagers amounts collected on winning tickets and amounts wagered on losing tickets as well as the tickets themselves For more information regarding other forms of gambling and the record keeping and documentation to support gambling winnings and losses please see IRS Publication 529 Miscellaneous Deductions Some examples of what to consider when entering the school district code on a return are as follows: Some original Form W 2 documents cannot be processed by the department s imaging equipment (onion skin paper printed in blue ink for example) and could delay the processing of a return If possible submit a photocopy of the Form W 2 on standard size paper instead of the actual Form W 2 SOMERSET sources while a PA resident and all income (loss) spousal/child support must file a separate PA tax return (Married Filing Separately) If a married person who is liable for support files jointly with his or her spouse the department will delay the refund until the taxpayers authorize the department to pay over the refund to DPW or the spouses file separate returns If the taxpayers do not reply to the department's notice the department will process the return as Married Filing Jointly SPOUSE Spouses whether filing jointly or separately may not use each other s expenses to reduce income or offset each other s income and losses state and your employer doesn t withhold PA income tax under PA law you may have to make estimated pay ments Please read the information on Page 37 If this is your situation you are liable for Estimated Underpayment Penalty See the instructions for Line 27 on Page 22 State Income Tax Levy Program for Delinquent Federal Income Taxes The PA Department of Revenue will intercept PA income tax refunds for delinquent federal income tax liabilities The Department of Revenue will provide a notice of the refund offset The department s only responsibility in this levy process is sending your refund to the IRS Therefore all correspondence and inquiries regarding such offsets must be with the IRS STE 204A 110 N 8TH ST PHILADELPHIA PA 19107 2412 STE 239 625 CHERRY ST READING PA 19602 1186 Stock Dividend Reinvestment Plans Students Submit a PA Schedule G R and PA Schedule G S or PA Schedule G L and a photocopy of each tax return that you filed in another state or country PA Schedules G R G S and G L and their instructions are not included with this booklet and may be obtained by using one of the Forms Ordering Services on Page 3 Submit an actual state copy or a legible photocopy of each state copy of Form W 2 (keep the original for your records) and a written explanation if: Submit photocopies of your state copy of each Form W 2 on 8 1/2 X 11 inch paper You may photocopy more than one Form W 2 on each sheet but the form must be legible; or Submit the required Pennsylvania or allowable federal schedule for each amount you report on Lines 4 through 8 Read the instructions for each income class carefully Subtract Line 10 from Line 9 Subtract Line 12 (and subtract Lines 25 and 27 if you entered amounts on these lines) from Line 24 and enter the difference here Subtract Line 1b from Line 1a Such payments are a required wage deduction under an agency shop agreement SULLIVAN Sullivan County 57630 SUMMARY (LINE 1a) SUNBURY Supplies Supporting Schedules Surviving Spouse SUSQUEHANNA Table 1 Estimated Use Tax Due tax but owe estimated underpayment penalty you must subtract your estimated underpayment penalty from your overpayment TAX FORGIVENESS Tax Forgiveness Credit Tax Forgiveness Credit Multiply Line 14 by the decimal on Line 15 and enter on your PA 40 Line 21 Tax Forgiveness is a credit that allows eligible taxpayers to reduce all or part of their PA tax liability Tax Forgiveness: TAX PREPARER OR APPROVED SOFTWARE tax the basis of that property will differ from the federal basis and you must adjust your depreciation expense accordingly You cannot expense sales tax and still take depreciation on the sales tax If you do not expense sales tax you may add such sales tax to the cost basis of the property and depreciate the aggregate cost plus sales tax tax withheld or paid to another state or country or income tax withheld and paid to any local tax authority Taxable amounts distributed from IRC Section 529 Qualified Tuition Programs for non educational purposes Please check our website at www revenue state pa us for more information on how to determine the taxable portion of any distributions for non educational purposes Taxable Distributions from PA S Corporations Report any gain you realize from other PA S corporation distributions that exceed your ownership basis in the PA S corporation You must obtain complete and submit REV 998 Shareholder Tax Basis in PA S Corporation Stock Worksheet Taxable Distributions from Partnerships Report any gain you realize from other partnership distributions that exceed your ownership basis in the partnership You must obtain complete and submit REV 999 Partner PA Outside Tax Basis in a Partnership Worksheet Taxable Gain from Exchange of Insurance Contracts If you have a sale exchange or disposition of an insur ance contract that does not qualify as tax exempt under IRC Section 1035 report the taxable exchange of any insurance contracts you reported for federal income tax purposes If you have more than one taxable exchange of contracts report the total gain you realized See the instructions on Page 17 for a description of the tax ex empt exchanges covered under IRC Section 1035 Taxable Gain from the Sale of Your Principal Residence PA law excludes the qualifying gain from the sale of your principal residence Generally if you owned and used property as your principal residence for at least two of the five years preceding the sale your gain is exempt However you must report a gain if you do not meet the requirements For more information request the Sale of Your Principal Residence brochure (REV 625) If you do not qualify to exclude the gain from the sale of your principal residence report your taxable gain if any on this line If you realized a loss from the sale of your principal residence enter a zero If you used any portion of your principal residence for business or rental purposes you must complete and submit PA Schedule 19 with your return Report the gain or loss on the business or rental portion of the sale of your principal residence on Line 1 of PA Schedule D TAXABLE INCOME FOR PA PIT PURPOSES: taxation of distributions from IRAs please review Tax Bulletin 2008 01 on the department s website www revenue state pa us Taxes Deduct taxes directly related to the rental activity Deduct the proportionate share of real estate taxes You may not deduct taxes based on income You may deduct gross receipts and business privilege taxes Taxpayer Died After the End of 2012 Taxpayer Service and Information Center Taxpayers claiming deductions for IRC Section 529 Qualified Tuition Program contributions Medical Savings Account contributions or Health Savings Account contributions must complete PA Schedule O Taxpayers claiming gambling winnings and losses must be able to document their winnings and losses This documen tation should not be included with your return but may be requested at a future date by the department You should keep an accurate diary or similar record of winnings and losses In addition to a diary you should have other documentation to support the entries within the diary Some but not all of the documents that can be used to support gambling winnings and losses include: federal Form W 2G Certain Gambling Winnings; federal Form 5754 Statement by Person(s) Receiving Gambling Winnings; wagering tickets; canceled checks; substitute checks; credit records; bank withdrawals; and statements of actual winnings or payment slips provided by the gambling establishment Taxpayers who are nonresidents and part year residents of Pennsylvania may claim Tax Forgiveness if meeting all the eligibility requirements Such taxpayers must include in their eligibility income all income as described whether earned within or outside Pennsylvania Nonresident and part year resident taxpayers who file paper copies of the PA 40 must also include a copy of page one of their federal income tax return along with their completed PA Schedule SP TELEPHONE Telephone Call 1 800 2PAYTAX (1 800 272 9829) TELEPHONE SERVICES that you use for business The age status as a full time student and gross income of a daughter son granddaughter grandson or foster child are factors only in determining whether the claimant can claim the child as a dependent for federal purposes For example parents that can claim a qualifying 30 year old child for federal purposes can claim that child as a dependent for PA Schedule SP purposes The amount in Box 16 of your Form W 2 may be different from the amount in Box 1 PA law requires your employer to follow PA income tax rules to determine Box 16 If you have any questions contact your employer The average period of customer use is 30 days or less; or The chart on the following page provides a comparison of where the income and credits reported on PA Schedules RK 1 and NRK 1 should be reported on the PA 40 The credits listed on PA Schedule OC are restricted credits meaning taxpayers or entities must obtain special docu mentation authorizing the use of the credits Documents must also be sent to the Bureau of Corporation Taxes so the credit can be verified and applied to the taxpayer Additional information on restricted credits is available in Chapter 17 of the PA PIT Guide found on the department s website at www revenue state pa us The department has the legal authority to require evidence that the expenses you claim on a PA Schedule UE are allowable for PA purposes Keep your necessary documents receipts vouchers and other records for at least four years The department has the statutory authority to verify and audit all of the amounts you report on your return and accompanying schedules Maintain your books and records for at least four years after filing as evidence of the information you reported on your PA return Basis documentation for any item reported or potentially reportable on current or future tax returns must be kept indefinitely or until such time as the asset is sold exchanged or disposed of by a taxpayer For example books and records used to calculate basis for retirement plans stocks bonds mutual funds business assets business interests tuition account programs principal residence etc must be kept indefinitely The Department of Revenue has a two step test for a dependent child: The department reserves the right to assess additional use tax due if and when it discovers evidence that the total purchase amount reported on the The department will grant up to a six month extension of time for filing a PA income tax return Unless you are outside the U S the department will not grant an extension for more than six months The department will impose: The department will send you a notice if we determine you owe this penalty If you disagree with the department's notice you must submit Form REV 1630 or REV 1630A to support your own calculation or claim for an exception The department will send you a notice if you do not include an amount on Line 27 and we determine you owe late filing and/or underpayment penalty and interest The department will take your original refund or payment into account when reviewing the amended PA 40 Be sure to sign your amended return and mail it with all explanations and attachments using the Mailing Instructions for each type of return found on Page 24 The education is not part of a program that would qualify you for a new occupation trade or business even if you do not intend to enter that new occupation trade or business The education is specifically required by law or by your employer to retain an established employment status or rate of compensation; and The expenses are PA allowable employee business expenses; and The federal and PA rules for educational expenses are similar but not exactly the same For PA purposes costs for education expenses that you pay or incur are allowable only if: The instructions for PA Schedule T are on the schedule Also please see Page 18 LINE 8 GAMBLING AND LOTTERY WINNINGS for more information the Internal Revenue Code in effect at the time the prop erty was placed in service or under Section 179 of the IRC of 1986 as amended to Jan 1 1997 whichever is earlier but not any other accelerated method 72 PS 7303(a 3)(Act 89 of 2002 ) The leasing activity is incidental to a real estate sales business The leasing of your property is characterized by regularity and continuity of activities; and The management conservation or maintenance of The Medicare wages in Box 5 on your Form W 2 are greater than your PA wages in Box 16 In this case complete and include with your return the PA 40 W 2 Reconciliation Worksheet To obtain the worksheet use one of the Forms Ordering Services on Page 3 The Military Spouses Residency Relief Act (MSRRA) affects the treatment of residency and income for spouses of military personnel for state tax purposes for tax years 2009 and after If a Pennsylvania resident service member is serving outside Pennsylvania and their nonmilitary spouse earns income in that other state and the spouse claims relief under the MSRRA the spouse s income is only taxable to Pennsylvania If a Pennsylvania nonresident service member is serving in Pennsylvania and their nonmilitary spouse earns income in Pennsylvania the spouse s income is not taxable to Pennsylvania under MSRRA when the service member and spouse are both residents or domicilaries of the same other state and if the spouse is in Pennsylvania solely to be with the service member PA source income from a business profession farm rental or royalty property related to a business or property located in Pennsylvania remains taxable to PA nonresident military personnel and their spouses and is not covered by the MSRRA For detailed information on how MSRRA impacts state taxation of income earned by a service member s nonmilitary spouse please review Tax Bulletin 2010 01 on the department s website www revenue state pa us The PA 40 line number on which to report the income follows each item Classify means report the income in the appropriate PA income class based on all facts and circumstances See PA PIT Guide for more information The PA compensation you enter on Line 1a of your PA 40 is not the same as Box 16 on your Form W 2 (you believe that the PA compensation or withholding is incorrect) The PA PIT Guide contains a table which cross references the information on the Form 1099 R with its corresponding PA income tax treatment PA law does not follow federal law concerning early retirement options for Individual Retirement Accounts IRC Section 401 plans 403 plans and other federally qualified plans To determine if the amount you received is taxable in Pennsylvania review Boxes 1 through 3 (the amount you received or your distributions) and the PA tax treatment of Box 7 (the codes that will help determine the taxability of your distribution) The federal codes contained in Box 7 of Form 1099 R include: the payment from a federal Form 1099 MISC or from another document and/or any distribution from federal Form 1099 R Box 1 If the payment is from a federal Form 1099 MISC or from another document other than a 1099 R enter the same amount in Column G The Pennsylvania Department of Revenue has a Taxpayers Rights Advocate who assists taxpayers with PA personal income tax and PA inheritance tax problems and concerns that have not been resolved through normal administrative procedures It is the Advocate s responsibility to ensure that the department provides equitable treatment with dignity and respect For more information concerning taxpayers rights visit the department s website at www revenue state pa us or request the department s Taxpayers Rights Advocate brochure (REV 527) from one of the Forms Ordering Services above The person (settlor) who establishes a revocable trust (including grantor trusts that are revocable) does not file a PA 41 if under the governing instrument he/she retains authority to: The production of or collection of rents and royalties; or The property is customarily made available for use only during defined business hours; or The surviving spouse the executor or other person respon sible for the affairs of the decedent uses this filing status to complete sign and file a separate return for the decedent The return must report all the decedent s 2012 income payments and credits The person signing the decedent s return must indicate his or her relationship to the decedent (surviving spouse executor or person responsible for the affairs of the decedent) The taxpayer incurs significant operating expenses in making the property available for lease; or The total of Lines 30 through 36 must equal Line 29 For addi tional information about these donation lines see Page 41 the trust without the consent of any other party If you establish a revocable trust report the income (loss) that the trust earns receives and realizes in the appropriate PA income class on your PA 40 personal income tax return Do not report the amounts on PA Schedule J The U S Postal Service returns envelopes without sufficient postage If your tax return is more than five pages or in an oversized envelope you may need additional postage Check with your local Post Office Please write your complete return address in the upper left corner of the envelope The value of property received as payment for services (Line 1a) Then your Percentage of Tax Forgiveness and the Decimal Equivalent is: There were no significant changes to the PA 40 forms and instruc tions for 2012 However two new tax credits the Opportunity Scholarship Tax Credit and the Keystone Special Development Zone Tax Credit were added to PA Schedule OC Additional infor mation about these and other tax credits is available at www rev enue state pa us under Incentives Credits and Programs These schedules show your share of income (loss) for each PA income class If you received any guaranteed payments add those payments to your share of income (loss) as shown on your Pennsylvania schedules The partnership limited liability company or PA S corporation deducts all allowable expenses and other allowable adjustments If your partnership limited liability company or PA S corporation requires that you incur direct business expenses and the expenses are allowable unreimbursed expenses for PA purposes you must itemize them on a separate statement The department may require at a later date a copy of the partnership or limited liability company agreement or articles of incorporation that require the partner member or share holder to pay expenses out of his or her personal assets You cannot deduct any personal expenses or expenses that you incur for your own convenience This method of reporting and paying use tax may not be used for purchases of motor vehicles watercraft boats ATVs snowmobiles or cigarettes TIOGA Tissue Donation Awareness Trust Fund 41 Gross Compensation Line 1a 10 Health/Medical Savings Accounts Line 10 19 Individual Retirement Accounts 12 Interest Income Line 2 13 IRA Distributions (60 Day Rollover Rule) 13 IRC Section 179 9 & 10 Joint Income Joint Returns 8 Juvenile (Type 1) Diabetes Cure To claim Tax Forgiveness complete and submit a PA Schedule SP and: To contact the Taxpayers Rights Advocate: to file your tax return make payments check the status of your to meet the distance test if your move is a permanent change of duty station If you your spouse and dependents are moving to the new duty station from different locations you may claim all the allowable expenses To obtain forms not available in this booklet visit a Revenue district office or use one of the following services: To obtain the Form PA 40ESR with the Form REV 413(I) (instructions) and Form REV 414(I) (worksheet) contact the district office nearest you the department s website at www revenue state pa us or one of the Forms Ordering Services on Page 3 to request evidence that your expenses are allowable for PA purposes Total Direct Employee Business Expenses Add Lines 1 through 4 Total Expenses Add Lines 3 through 17 Total Expenses Add the expenses you are claiming from each Part of PA Schedule UE If you are a nonresident or part year resident Total Moving Expenses Add Lines 17 and 18 total net loss fill in the oval next to Line 4 on your PA 40 THE SALE EXCHANGE OR Total PA Taxable Gain (Loss) Add Lines 2 through 10 Total Section 179 deduction per return is $25 000 If joint return deduction is $12 500 per taxpayer Amount reported is not an additional deduction Touch tone service is required for this automated 24 hour toll free line Call to order forms or check the status of a per sonal income tax account corporation tax account or property tax/rent rebate Traditional IRA Rollover You do not have to pay PA tax on the difference between the amount distributed from your traditional IRA and your previous contributions: Transfer the amounts for Lines 19 20 and 21 from the PA Schedule SP that you submit with your PA tax return Treasury Offset Program for Delinquent PA Income Taxes The Internal Revenue Service (IRS) will intercept federal income tax refunds for delinquent PA income tax liabilities The Department of Revenue will notify delinquent taxpayers about its intention to intercept their federal refund and allow them 60 days to pay their liabilities Type 1 diabetes is a condition where the body does not produce insulin the hormone needed to convert sugar (glucose) starches and other food into energy needed for living Although the disease can be diagnosed at any age it is most often diagnosed in children adolescents and young adults The causes of Type 1 diabetes are unknown and there is currently no way to prevent or cure it Persons with Type 1 diabetes are dependent on injected or pumped insulin for life You have the opportunity to help find a cure for this disease by contributing all or a portion of your Pennsylvania tax refund to the Juvenile (Type 1) Diabetes Cure Research Fund U S government the Commonwealth of Pennsylvania and political subdivisions of Pennsylvania For a list of exempt obligations obtain Tax Exempt Obligations for Pennsylvania Personal Income Tax Purposes (Form REV 1643) from one of the Forms Ordering Services on Page 3 U S POSTAGE U S Postal Service postmark date on your envelope is proof of timely filing You must report all taxable income received or accrued from Jan 1 2012 through Dec 31 2012 U S Public Health Service the National Oceanic and Atmospheric Administration the U S Foreign Service or con tractors working in foreign countries are subject to tax on compensation whether earned within or outside Pennsylva nia However compensation earned by PA residents serving in the Merchant Marines or U S Public Health Service called to active duty in a Combat Zone or hazardous duty zone is not subject to tax in Pennsylvania Copies of executive orders that make the active duty military active duty are required to be included with the return Under a stock dividend reinvestment plan you elect dividends in the form of stock rather than cash or other property You must include the stock's fair market value as dividend income as of the date paid Under PA law a taxpayer must file a refund petition within three years following the date of payment For a refund of tax shown on a timely filed PA tax return the Board of Appeals may not accept a petition for refund unless the taxpayer files the petition within three years of the original due date or pay ment of tax Under PA law losses may only be reported on Lines 4 5 and 6 If entering a loss fill in the oval next to the line Underpayment Penalty are included in Line 27; Underreported Income for Amended Returns Undistributed Income You do not report the undistributed interest and other earnings on the assets held in your IRA UNION Unless otherwise noted PA rules generally do not follow the federal rules for determining the net income (loss) realized from the rental of property Unless the specific instructions require a dif ferent Pennsylvania schedule report each sale exchange or disposition of property on PA Schedule D Unlike federal rules you may not deduct education expenses that you incur to maintain or improve your skills Unmarried means single widowed or divorced on Dec 31 2012 Use a PO Box on any line of your address except the line directly above your city and state Use an X or check mark ( ) in an oval Use Column A if unmarried or married filing jointly Use the columns under Column B and C if married filing separately Use dashes or other punctuation in boxes Use lower case letters or script Use red pen or pencil Use tax is the counterpart of sales tax and applies to taxable purchases made over the Internet through toll free numbers from mail order catalogs and from out of state locations or any other occasion where sales tax was not charged and collected by the seller The use tax rate is the same as the sales tax rate: 6 percent state tax plus an additional 1 percent local tax for items purchased or used in Allegheny County and 2 percent local tax for Philadelphia Use Tax Worksheet Use the correct label (Payment Enclosed) from the envelope the department provided Use this filing status if you lived in Pennsylvania during 2012 but permanently moved away or if for any other reason you will not have any PA taxable income (or loss) in 2013 You will not receive a 2013 booklet Provide the reason such as you moved to another state Use this status if the taxpayer died in 2012 Enter the date of death The department will not send a 2013 tax booklet in the name of the decedent Use UPPER CASE (CAPITAL) letters Use your personalized Form PA V with your payment if you owe tax with your 2012 PA tax return Do not use this voucher for any other purpose Follow the instructions below Utilities Deduct the cost of ordinary and necessary telephone calls related to your rental activities or royalty income However the base rate (including taxes and other charges) for telephone service for the first telephone line into your residence is a personal expense and is not deductible VENANGO Visit the Revenue e Services Center at www revenue state pa us WARREN WASHINGTON WAYNE WESTMORELAND What is Tax Forgiveness? What s New for 2012 When claiming Tax Forgiveness together one of you must meet the eligibility requirements but you must use your Joint Eligibility Income and Eligibility Income Table 2 WHEN ENTERING INFORMATION When filing separately the taxpayer and spouse must combine their eligibility incomes to determine if they meet the eligibility requirements A married taxpayer cannot claim Tax Forgive ness independently of his or her spouse Married claimants are not dependents of one another for Tax Forgiveness purposes even when one spouse does not have any Eligibility Income You each must use your Joint Eligibility Income and Eligibility Income Table 2 and fill in the oval and certify that you are using the same information for PA Schedule SP When filing your PA tax return: When one spouse is claimed as a dependent on another per son s federal income tax return otherwise qualifying married taxpayers must file separately EXAMPLE: Scott is a depend ent on his parents federal income tax return and is not eligible for Tax Forgiveness His wife Paula is not a dependent and may complete PA Schedule SP Paula may not claim Scott as a dependent but must include his Eligibility Income when calculating her Total Eligibility Income Additionally if Scott s parents qualify for Tax Forgiveness Scott may also qualify if he included Paula s income in his Total Eligibility Income When reporting PA taxable compensation you may or may not have to submit Form(s) W 2 with your tax return If you do not have to submit your Form(s) W 2 as shown below in When to Submit Form(s) W 2 you have these options: When submitting supporting schedules and statements showing the name of the trust write REVOCABLE clearly on the schedule When to Submit Form(s) W 2 who does not live in your household Do not include payments you receive for child support here see the instructions for Part B Who is Eligible for Tax Forgiveness? Who Must File a PA Tax Return? WILD RESOURCE CONSERVATION FUND wildlife and native wild plants by making a With certain exceptions Pennsylvania s constructive receipt rules are the same as the federal constructive receipt rules to determine when compensation is received by a cash basis taxpayer Following the federal constructive receipt rule deferrals to nonqualified deferred compensation plans are not included in compensation However compensation includes distributions from nonqualified deferred compensation plans attributable to an elective deferral of income regardless of whether the distributions are paid during employment or retirement Also distributions of previously taxed contribu tions are not taxable If you receive distributions of previously taxed contributions complete and include with your return the PA 40 W 2 Reconciliation Worksheet To obtain the worksheet use one of the Forms Ordering Services on Page 3 with Fed/State e file TeleFile and padirectfile are available free of Withdrawals Distributions from an IRA including a federal Roth IRA are taxable to the extent the distribution exceeds your previous contributions Distributions you receive after retiring but before age 591/2 are taxable even if you receive substantially equal payments and you do not pay the federal penalty for an early withdrawal PA law does not have any exceptions similar to the federal exceptions for withdrawal before age 591/2 However distributions from an IRA are not taxable if the payments are: Write (1) the last four digits of your SSN (2) "2012 PA V" and (3) daytime telephone number on your check or money order If you are filing a joint return enter the last four digits of the SSN shown first on your return The department will need the last four digits of your SSN to accurately apply your payment Written Requests: PA DEPARTMENT OF REVENUE TAX FORMS SERVICE UNIT 711 GIBSON BLVD HARRISBURG PA 17104 3218 www revenue state pa us for information Taxpayer assistance hours are 8:30 a m to 5:00 p m www revenue state pa us PA 40 43 WYOMING YOU & You and your spouse elect to have the same residency period (earliest starting date if you moved into Pennsylvania and latest ending date if you moved out of Pennsylvania) if you are part year residents; and You and your spouse even if living apart can file a joint return for convenience To file jointly you must meet ALL of the following conditions: You and your spouse have the option to file separate returns However you and your spouse must file separate returns if: You and your spouse if applicable are eligible if: You and your spouse must file these schedules separately each reporting only your own income expenses and net income (losses): You are a PA resident working in another state or country and did not have PA income tax withheld by your employer You are a resident of a reciprocal compensation agree ment state and your employer withheld PA income tax you are claiming office or work area You are liable for these penalties if your underpayment of tax is due to negligence or intentional disregard of rules and regulations but without intent to defraud The department may assess both late filing and underpayment penalties if you file your return after the due date or extended due date and do not pay your tax liability with your return You are not a dependent on another person's federal tax return; and You are subject to PA personal income tax You and/or your spouse are liable for PA tax on your income (or would be liable if you earned received or realized PA taxable income); You are subject to this penalty if: You are unmarried for Tax Forgiveness purposes and your former spouse by agreement or court decree can claim your child as a dependent for federal and PA Schedule SP purposes; or You can also send a direct tax deductible contribution by making your check or money order payable to the Governor Robert P Casey Memorial Trust Fund and mailing it to: Department of Health Bureau of Administrative and Financial Services Division of Budget 625 Forster St Health and Welfare Building Room 832 Harrisburg PA 17120 You can also send a direct tax deductible contribution by making your check or money order payable to the Juvenile (Type 1) Diabetes Cure Research Fund and mailing it to: Department of Health Bureau of Administrative and Financial Services Division of Budget 625 Forster St Health and Welfare Building Room 832 Harrisburg PA 17120 You can also send a direct tax deductible contribution to: Wild Resource Conservation Fund PO Box 8764 Harrisburg PA 17105 8764 For more information visit: www dcnr state pa us/conservationscience/wrcp/index htm You can calculate this penalty on Form REV 1630 or Form REV 1630A that you submit with your return Submit the appropriate form with your return if you owe the penalty You can determine your penalty and interest by visiting the department's e Services Center at www revenue state pa us Forms REV 1630 and REV 1630A are also available on the department s website or by utilizing one of the Forms Ordering Services on Page 3 of the instructions You can file an amended PA return and request a refund if you over reported income or did not claim allowable credits or deductions You must file your amended PA return within three years from the original due date or extended due date You can pay your PA taxes with a major credit card or a debit card Credit card transactions are charged a 2 49 percent convenience fee ($1 minimum charge) and debit card trans action fees start at $3 95 You can use your American Ex press Discover MasterCard or Visa credit card to pay your taxes online or by phone You may also use a Mas terCard or Visa debit card to make payments online Se lect one of these options to pay using your credit/debit card: You cannot amend your PA tax return using TeleFile However if you use software that supports the amended PA return you can amend your 2010 or earlier year return using the Modernized e File (MeF) platform for Fed/State e file If not using the MeF platform for filing Fed/State e file re turns obtain a PA 40 PA Personal Income Tax Return book let for the year you want to amend and follow the Amended Returns instructions included therein You cannot claim a dependent child on PA Schedule SP if: You cannot claim any other adult as a dependent even if You deduct those expenses that you paid or incurred during the taxable year that are ordinary and necessary for: You did not incur an allowable business expense during the year if you: You failed to make timely estimated tax installment payments to cover the difference between 1 and 2 above if any You have a distribution from a nonqualified deferred compensation plan included in Box 1 of your Form W 2 You have the chance to "Do Something Wild" You have the opportunity to contribute to the PA Breast Cancer Coalition s Refunds for Breast and Cervical Cancer Research fund by making a donation of all or a part of your tax refund Every penny of your donation goes directly to fund breast and cervical cancer research conducted by Pennsylvania researchers You can also send a direct tax deductible contribution to: PBCC s Refunds for Research fund c/o PA Breast Cancer Coalition 344 N Reading Road Ephrata PA 17522 For more information visit www pabreastcancer org or call 1 800 377 8828 You incurred a loss from any transaction as an individual sole proprietor partner in a partnership or PA S corpora tion shareholder You may also pay your 2012 PA tax due using electronic funds transfer by accessing the Revenue e Services Center at www revenue state pa us You will be prompted for your bank account information and the payment will be deducted from your account on the date you specify There is no charge for using this option You may claim these expenses when your employer does not provide you with a suitable work area and you can answer YES to each of these questions: You may deduct allowable expenses you incur in moving yourself your immediate family your household goods and your personal belongings including the cost of transportation to your new home using your actual out of pocket costs or the federal mileage allowance You may deduct expenses for storing household goods for meals and lodging on the way including such costs on the day you arrive and parking fees and tolls You may deduct moving expenses incurred to retain employ ment You may also deduct moving expenses to report to a new location after obtaining employment However you must meet the Distance Test described below You may need to submit other information such as copies of military orders (if on active duty outside Pennsylvania) Forms W 2 (if your employer withheld additional PA income tax) and tax returns you filed in other states (when requesting a PA Resident Credit) Read and follow the instructions The department reserves the right to request an explanation or supporting information for any amount that a taxpayer reports on a Pennsylvania tax return You may not deduct expenses for: You may not prepare your own facsimile schedules as replacements for PA schedules Also if using the forms within the booklet do not submit a photocopy of your PA 40 form You may offset the penalty for premature redemption or withdrawal of a time savings account or certificate of deposit only against the interest income you received in the same taxable year from that account or certificate You cannot offset this penalty against other interest income If your total penalty exceeds the related interest income you may report the excess as a loss on PA Schedule D You may offset your own net gains against your own losses in determining this line If married and you both have income (losses) in this class see REPORTING INCOME GAINS AND LOSSES ON LINES 4 5 AND 6 beginning on Page 14 If you realize an overall net loss fill in the oval next to Line 5 on your PA 40 You may only offset your own net income and losses in determining the amount to report on this line If married and you both have income (losses) in this class see REPORTING NET INCOME GAINS AND LOSSES ON LINES 4 5 AND 6 only beginning on Page 14 If you realize a total net loss fill in the oval next to Line 6 on your PA 40 You meet the eligibility requirements NOTE: A dependent child may be eligible if he or she is a You must and do account for these expenses to your employer; and You must answer question F1 If you answer YES continue If you answer NO you may not claim any education expenses You must answer questions F2 and F3 If you answer NO to both questions continue If you answer YES to either question you may not claim any education expenses You must classify dividend income regardless of how you report the income for federal purposes Report personal dividends on Line 3 Otherwise include dividend income from business accounts and working capital dividend income in determining profit (loss) on your PA business schedule You must classify interest regardless of how you report the income for federal purposes Report personal interest on Line You must enter the five digit code and name of the school district where you lived on Dec 31 2012 even if you moved You must file as single if on Dec 31 2012: You must file before midnight Monday April 15 2013 The you must include a copy of page one of your 2012 federal in come tax return you must report your distributions on a cost recovery basis until you reach age 591/2 You must report your income (loss) by applicable class whether it is received directly through an estate or trust or as a distributive share of the income of a partnership or PA S corporation Read the instructions for each income class You must submit a legible photocopy of the Form W 2 with a written explanation per the instructions for When to Submit Form(s) W 2 beginning on Page 10 Please see the filing tips and cautions in the same section for additional information You must submit your payment on or before midnight Monday April 15 2013 Select your payment option You offer the use of your property on a commercial basis to others in a marketplace and at least one of the following applies: You offer the use of your property with the intention of realizing a profit; and You pay these expenses directly or through a withholding arrangement with your employer These expenses are necessary to perform or maintain your job Itemize the nature and amount of the expenses you are claiming in Part A You recover costs associated with capital improvements through depreciation deductions You may not deduct per sonal expenses or that part of any expense that is personal You report your share of income (loss) whether distributed or not in the same PA income class in which the entity realized the income (loss) Submit a copy of each PA Schedule NRK 1 that you receive You were not married; or Your Address Use your label if it is correct If your label is not correct or if you do not have a label fill in the oval on the PA 40 form indicating an Identification Label Change Print your name and address on the form Your child s other parent by agreement or court decree can claim your child as a dependent for federal tax and PA Tax Forgiveness purposes Your credits from Lines 17 21 22 and 23 do not offset the tax due on the income from 1 above and Your employer gave you a handwritten Form W 2 Your employer reimburses you in the exact amount of the Your employer reported an incorrect amount on your Form W 2 You must also submit a written statement from your employer Your employer withheld PA income tax from your wages at a rate that is more than the 2012 tax rate of 3 07 percent Your Form W 2 shows income earned or tax withheld for another state Your PA Payment Voucher (Form PA V) and payment your return to the address that applies to you Your Signature(s) and Date Your spouse is still living; and Your taxable years begin on different dates for part year residents; or Your taxable years end on different dates; or Your taxable years end on the same date; and