ENTERING INFORMATION:
• Your Address – If you are using a return form that shows a pre-printed name/address and the information is
incomplete or contains errors, please cross out the incorrect information and print any changes as necessary. For
proper distribution of your local earned income tax, your actual street address MUST be provided. If you utilize a PO
Box for receipt of mail, this would be shown in addition to your actual street address on the second line of address.
If you have moved during the year, please supply your prior address information and dates residing at each location
in the spaces provided at the top of your return form.
• Change of Address During Tax Year – If you moved during the year, please provide each address and account for all
12 months. If you resided in areas with different tax rates, use the Schedule X below to calculate your tax liability.
• Phone Number – Enter the area code and phone number where you can be reached during weekdays.
• Resident PSD Code – The Resident PSD Code is a six-digit number that references the county tax collection district,
school district and municipality in which you reside. Please enter the six digit PSD code where you lived on
December 31 even if you moved after December 31. For PSD Code information please refer to our website or
contact YATB.
• Social Security Number(s) – Carefully enter your SSN, and your spouse’s SSN if applicable, in the boxes provided on
your local earned income tax return form.
• Rounding Numbers – On the Local Earned Income Tax Return form, round monetary amounts to the nearest whole
dollar. Reduce any amount that is less than 50 cents to 0 (zero) and increase amounts from 50 to 99 cents to the
next dollar amount.
Example: $4.49 should show as $4.00, $4.50 should show as $5.00
Exception: Rounding will not apply to amounts calculated and shown in Lines 17, 18 and 19.
INDIVIDUAL TAXPAYER ANNUAL LOCAL INCOME TAX RETURN INSTRUCTIONS:
Line 1: Gross Compensation
DOCUMENTATION REQUIRED: W-2(s) must be enclosed (legible copies accepted).
Rule: Do not use Federal Wages as shown in box 1 of W-2
Taxable Local EIT Compensation includes: Salaries; Wages; Commissions; Bonuses; Tips; Stipends; Fees; Incentive
Payments; Employee Contributions to Retirement Accounts (If amounts received as a drawing account exceed the
salaries or commissions earned, the tax is payable on the amounts received. If the employee subsequently repays to the
employer any amounts not in fact earned, the tax shall be adjusted accordingly). Benefits accruing from Employment,
such as: Annual Leave; Vacation; Holiday; Separation; Sabbatical Leave; Compensation Received in the form of Property
shall be taxed at its fair market value at time of receipt. Jury Duty Pay; Active Duty Military Pay if stationed within PA;
Reserve Military Pay or Payments Received from weekend meetings for National Guard Units; Sick Pay (if employee
received a regular salary during period of sickness or disability by virtue of their agreement of employment); and Taxes
Assumed by the Employer. Taxpayers should refer to the PA Department of Revenue regulations regarding taxable
compensation. This list is not exhaustive; please contact YATB if you have additional questions.
Non-Taxable Local EIT Compensation includes: Social Security Benefits; Unemployment Compensation; Pensions;
Public Assistance; Death Benefits; Gifts; Interest; Dividends; Boarding and Lodging to Employees for convenience of
Employer; Lottery Winnings; Supplementary Unemployment Benefits (sub pay); Capital Gains (Capital Losses may not be
used as a deduction against other taxable income). Disability Benefits (periodical payments received by an individual
under a disability insurance plan); Active Military Service outside of PA and Summer Encampment; Personal Use of
Company Vehicles; Cafeteria Plans; and Clergy Housing Allowance; Non-Qualified Deferred Compensation Plan
Contributions made on behalf of the employee. Some forms of distribution payments from Individual Retirement
Programs such as; Keogh, Tax Shelter Annuity, IRA, and 401K are not taxable. Taxpayers should refer to the PA
Department of Revenue regulations regarding taxable compensation. This list is not exhaustive; please contact YATB if
you have additional questions.
Line 2: Unreimbursed Employee Business Expenses
DOCUMENTATION REQUIRED: Pennsylvania Department of Revenue form PA-UE must be enclosed (legible copies
accepted). PA-UE deductions may only apply to W-2 income; a separate UE form is required for each employer. All
expenses are subject to verification by YATB. YATB reserves the right to require further documentation (mileage logs,
receipts, etc.) to substantiate amounts claimed.