In my town most taxes are raised through property taxes. That gets sucked out of your mortgage payment behind the scenes.
But in my town there is another local tax that is easy to forget: the earned income tax. It is 1% of your gross income. Half of it goes to the schools, half to the town.
The tax form comes from Berkheimer.
Every two years the state sends them tax information. They use this to find out who did not pay. So you could go without paying for a year or two and hear nothing about it.
But they are nice about it: if you write to them when you send in your W-2 forms, you can say how much a month you can pay to pay it off.
Where to get the numbers for the form, line by line:
- From W-2 forms
- From PA Sched UE, at the bottom of the first page.
- Net profits from Schedule C, at the bottom of the first page.
- Subtract taxes paid to New York state (see IT-203, at the bottom of page 3 probably) from taxes you paid to Pennsylvania (PA Sched 40, line 12 or thereabouts). This will be your credit.
If you have questions, go to Berkheimer’s website:
