Local Tax Return

[Sapna]

Hi Team

I am Looking Foe Generating Local Tax Return For PA State in Lacerte 

[George4Tacks]

You may just have a city payroll tax in the w-2, that does not mean you file a return for that city. I think the only local returns for PA are BIRT and NPT

[sjrcpa]

@George4Tacks  There are probably over 100 local earned income tax returns/jurisdictions. Most of them have to be filed even if withholding = tax.

[George4Tacks]

@sjrcpa How many of those returns can be done with Lacerte? 

[sjrcpa]

I don't know. I don't have very many. Client usually brings me the preprinted one they received in the mail or does it themself.

[otaxman]

To file a Pennsylvania local earned income tax return in Lacerte, you would use screen 54. Most local jurisdictions will accept the substitute return printed by Lacerte. To file local tax returns accurately, you'll need a PSD code (DCED.PA.Gov), which indicates the local tax rates and where to send the return. Each school district, township, or city has specific tax rates that must be combined and then multiplied by the earned income general the ( medicare wages) .

Most jurisdictions require paper filing along with W-2 forms. Note that generally, only earned income is taxable at the local level; the state of Pennsylvania is not involved in the collection of local taxes. Each area of Pennsylvania has its own local tax collection organization. Currently, there are only six organizations responsible for collecting taxes for hundreds of school districts, townships, and cities.