I.e. is the abbreviation for the Latin "id est," meaning "that is." Another form of "for example." He lives in PA so he has PA wages, the employer just doesn't tell you. PA taxes all compensation, so usually Medicare wages box 5. You need to enter it. NY wages follow federal law, so box 1. Therefore, NY taxes less than PA and PA Local wages. They might, but I highly doubt a NY employer withholds PA Local EIT. ps NY doesn't allow "working at home in PA" in order to allocate wages outside NY state. 100% is taxable to a NY working non-resident.

There are two questions beneath the dependents section of the Info W/S and both must be answered Y or N before EIC is allowed. {Sorry, this is in Pro Series. Does Lacerte have such questions? They should somewhere.}

Then this happens: you work in a locale that charges a 0.5% local tax, but you live in a locale that charges 1%. Job withholds 0.5%, and you file at home. Your home locale gives you a credit for the working locale's 0.5%, and you still owe 0.5% to your home locale. If the reverse percentages are true, job withholds 1%, home charges 0.5%, you file at home and get a 0.5% credit so you owe nothing to home locale. Confused yet?

MOST GT's do not even file a return, and everything goes on the 1040. If you didn't file the GT 1041, as everyone says the 1041 is blank with that wording. So if you didn't bother to file the 1041, you would put I&D on the 1040 Sch B and the rental on the 1040 Sch E. I would not put the rental on the 1041, just on the 1040-E.

And don't forget, if you live in PA and need to file Local, too, but you work outside PA: Not only can you get a tax credit up to 3.07% PA tax if you pay the other state(i.e., NY), but your Local tax might be covered if you pay more than 3.07% to the other state. IE, NY taxes are much higher than 3.07%, so there is more left to cover the Local's 1% or 0.5% or even Pittsburgh's 3.0%. (Not Philly's wage tax, though. No credit for you!)