TaxEngine - Basic Instructions for Preparing and Filing Pennsylvania Tax Returns
In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
Pennsylvanians serving in combat zones or qualified hazardous duty areas designated by the President of the United States are given the same additional time to file their state 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.
If the return is being filed electronically, copies of the orders need to be faxed or mailed. Print Combat Zone at the top of the orders. Fax orders to (717) 772-4193 or mail orders to:
Regarding: Combat Zone
PA Department of Revenue
Electronic Filing Section
Department 280507
Harrisburg PA 17128-0507
Type of Filer
Check the box to indicate 'married filing separate spouse not filing' if you filed married filing searate on the federal return and your spouse had no income and is not required to file a federal return and your spouse is not a dependent of another.
If the box is checked indicating that this is a final return, provide the reason for the final return, such as moved to another state. Limit this entry to 23 characters. Remember even after the taxpayer moves from Pennsylvania, they must report any PA taxable income earned, received, or realized from PA sources.
Deceased, Final Return -Use this status if the taxpayer died in 2007.
The surviving spouse, the executor, or other person responsible for the affairs of the decedent, uses this filing status to complete, sign, and file a separate PA-40 for the decedent. The PA-40 must report all the decedent's 2007 income, payments, and credits. The person signing the decedent's return must indicate his or her relationship to the decedent - surviving spouse, the executor, or person responsible for the affairs of the decedent.
Part-Year Resident
You are considered a part-year resident of Pennsylvania if, during 2007, you moved your permanent home into or out of Pennsylvania. You must pay Pennsylvania income tax on income you earned, received or accrued while living in Pennsylvania.
TaxEngine will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.
Nonresident
If you are a resident of another state and worked in Pennsylvania during 2007, you are required to file a Pennsylvania income tax return and are required to pay Pennsylvania income tax on salary wages and other employee compensation for work performed in Pennsylvania.
If you are a Pennsylvania resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.
Pennsylvania has agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Generally, under these agreements, on state will not tax a resident of theother state on compensation that is subject to employer withholding. These agreements apply to most tyhpes of W-2 compensation warned while a resident of the reciprocal compensation agreement state. It does not apply to miscellaneious and non-employee compensation.
If you are a PA resident working in one of these states, and your employer withheld theother state's income tax, you must file for a refund from that state.
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. Check the box to indicate that you are a nonresident of PA and that you work in a reciprocal state. The return will be calculated indicating no income and filing for a refund only.
Amended Return
If you realize you made a mistake on your PA tax return, you must correct your return by filing a separate PA-40 return. Check the 'Amended Return' box. You can only amend your current year return on the Taxengine site.