Triva isn't available right now.
Check out the support page for our phone number and hours
Screen PAEIT - Pennsylvania Local Earned Income Tax Defaults (1040)
Show all hidden content
Overview
Use this screen to complete a local earned income tax return. If information transferred from UltraTax/1040 doesn't require additional data or coding, UltraTax/1040-PA Cities shows it on the form only, not in the screen. The local EIT filing instructions for the tax return and estimates prints automatically when required. The PAEIT screen is a multiple-unit screen.
UltraTax CS allows the creation of 900 user-defined cities. Each city is assigned a numeric code in the range of 101 to 999. In addition to the numeric code, UltraTax CS will now use the alphabetic code of PGH (Pittsburgh) to create a local earned income tax return. Enter the city code (101-999 or PGH) in federal screens in the
City code
field. Information is gathered and entered on the local EIT return based on the city code.UltraTax CS includes predetermined local earned income tax return defaults. The defaults are associated with PSD codes. To set up a user-defined city, select
Setup
, 1040 Individual
, the Pennsylvania
tab, then Local Cities
. Enter a city code and select the PSD code to be associated with it. The default information will populate the setup screen.The city code field on this screen is now called
Taxing authority city code
. This screen (PAEIT), or more specifically the Taxing authority city code
field on this screen, is used to define which city return is being filed. The city code on the PAEITInc screen is the city where the income was earned (work jurisdiction).Per Act 32, for residents or part-year residents, a local return should be filed with the locality in which the taxpayer and/or spouse live. The tax rate used shall be the resident rate of the locality lived in. For nonresident taxpayer's (those living out of Pennsylvania but working in Pennsylvania or those living in a non-taxing city) a local return should be filed with the locality in which the taxpayer and/or spouse works and the nonresident tax rate of the working locality should be used to prepare the Local Earned Income Tax Return for that locality. If the nonresident tax rate is higher than the resident tax rate, the withholding entered will be reduced to reflect the resident tax rate.
For part-year returns, income entered in UltraTax CS with a city code will be included on the return with a matching taxing authority city code. To allocate or exclude income from a part-year return, the
Change of address information
field on this screen or the Income allocated by amounts
fields on the PAEITInc screen can be used.note
Local EIT returns can't be filed electronically.
Tax Defaults
Taxing authority city code
The taxing authority city code entry is required to create a local earned income tax return. UltraTax CS completes the remainder of the city information based on the taxing authority city code. This field is limited to the numeric range of
101
to 999
and the alphabetic code of PGH
. The Taxing authority city code field is used to determine the taxing municipality in UltraTax/1040 for the Local Earned Income Tax Return. For more information on setting up a 3-digit taxing authority city code, see Political Subdivision (PSD) codes and taxing authority city code setup. When this field is populated, UltraTax CS automatically defaults to the information entered in Setup
, 1040 Individual
, the Pennsylvania
tab, then Local Cities
for the following fields:- Tax collection bureau
- Municipality / School District
- Municipality
- Payee (Force)
- Collection agency mailing address (Force)
- Resident tax rate
- Nonresident tax rate
- Calculate tax for each column of the local EIT worksheet using the higher resident or nonresident tax rate
- Due date
- Create separate returns when joint
Municipality / School District
The School District and City name are related to the taxing authority PSD code.
Taxing authority PSD code
This is the taxing authority PSD (Political Subdivision) code that's related to the school district and city in the
Municipality / School District
field. When a nonresident return is being filed, (the Residency status
field indicates N
(nonresident)) the Resident PSD Code form field is automatically populated with code 880000
.Payee (Force)
Payee is the name of the tax collector that is associated with the tax collection bureau.
Resident / Nonresident tax rate
These rates are associated with the school district and city. Enter the resident rate as
xx.xxxxx
. The nonresident rate is only used when the Residency status
field indicates N
(nonresident). The nonresident tax rate is displayed here for informational purposes only. UltraTax CS uses the nonresident rate found on the PAEITInc screen. The nonresident status refers to those taxpayers living out of Pennsylvania but working in Pennsylvania or those taxpayers living in a non-taxing city and working in a city with a non-resident tax rate. Otherwise, the tax rate used shall be the resident rate of the taxing authority.Calculate tax for each column of the local EIT worksheet using the higher resident or nonresident tax rate
For resident or part-year returns, when this field is marked both the resident and non-resident tax rates are filled in on the Local EIT Worksheet and the higher tax rate is used to calculate the tax on income in that column of the worksheet. The W-2 withholdings on the worksheet aren't automatically reduced. When this field isn't marked, the resident rate is used to calculate the tax on income and, if the nonresident rate is greater than the resident rate, the W-2 withholdings on the worksheet are automatically reduced.
Calculate Overpayment / Refund line on the return with refund amount
When this field is marked UltraTax CS will complete the Overpayment/Refund line with the actual refund amount that should be sent to the taxpayer. When this field isn't marked, UltraTax CS defaults to completing the Overpayment/Refund line with the overpayment amount that is calculated on the return.
Minimum refund / balance due
These fields are used for filing instructions only. Enter the value that is greater than or equal to the amount listed in the instructions for minimum refund or balance due. For example, a tax bureau may indicate "If you have an overpayment of taxes in excess of $1.00, you may elect to receive a refund or take as a credit..." In this case enter
2
in the Minimum refund
field. If the refund calculates to $1.00, the filing instructions would indicated none due. If the refund calculates to $2.00, the filing instructions would show the refund paragraph.If 'X', city data entry suspends data transfer to this screen
When this field is marked, the data that transferred to this section and local return from
Setup
, 1040 Individual
, Pennsylvania
, Local cities
will be preserved. If the setup information changes, the changes won't show up on the input screen or be used in the return.Miscellaneous
Change of address information
Enter the addresses of the homesteads, along with the from and to dates lived at each address entered (account for all 12 months). Enter
X
in the Mark to allocate income based on months
field to allow UltraTax CS to split all income on this return to be allocated based on months. When the Mark to allocate income based on months
field is used, income is accumulated as if a resident and these amounts are used in the allocation based on number of months. Only 1 address in this field should have the Mark to allocate income based on months column completed. The address would be the one associated with the PAEIT screen. The Income allocated by amounts
fields on the PAEITInc screen will override the monthly allocation calculation. If there are 2 part-year returns being filed and the Mark to allocate income based on months
field is used, the withholding and estimates entered will automatically populate the returns based on the city code entered for each. On the PAEITInc screen, the Payments allocated by amounts
fields can also be used to force withholding amounts. Estimate amounts can be forced on the EIT screen using the Estimates / Form Local EIT overpayment to be applied to (Force)
fields.Do not print Local EIT return
Use these fields if filing a joint PA return and the taxpayer is a resident of city A and the spouse is a resident of city B. To get the returns to print correctly, mark the
Create separate returns when joint
field on the PAEIT screen for City A and mark the Do not print Local EIT return
field for the spouse. This allows only the taxpayer city A return to print. On the PAEIT screen for City B, mark the Create separate returns when joint
field and mark the Do not print Local EIT return
field for the taxpayer. This allows only the spouse city B return to print.Residency status
Use these fields to enter the residency status for this return. The UltraTax CS default is a resident return. To enter part-year dates, enter
P
in this field and update the Change of address information
statement window. The nonresident status refers to those taxpayers living out of Pennsylvania but working in Pennsylvania or those living in a non-taxing city.The nonresident rate on the PAEIT screen is only used when the
Residency status
field indicates N
(nonresident), and in this case the Local Earned Income Tax Return
field for Resident PSD Code automatically populates with code 880000
. To calculate a Nonresident Local Earned Income Tax Return, the Residency status
field must indicate N
(nonresident) and the taxing authority city code entered on the PAEIT screen must equal a city code on the PAEITInc screen.note
For nonresident returns, the only income that's taxable on the return is the income with the city code on the PAEITInc screen that matches the taxing authority city code on the PAEIT screen.
Date of occurrence
For the requesting taxing bureau, enter the date disabled, deceased or retired.
Tax liability (Force)
UltraTax CS uses the tax liability calculated from the Local Earned Income Tax Worksheet. Enter an amount in these fields to override the calculated amounts on the local earned income tax return. When these fields are used, UltraTax CS doesn't show the tax rate on the local return.
Estimates / Form Local EIT overpayment to be applied to (Force)
UltraTax CS uses the estimates and overpayment credit forward amounts entered in the federal St Pmt screen. When an amount is entered in these fields, it's used to update the Estimates / Credit from previous tax year field on the Local Earned Income Tax Worksheet.
Transfer refund to spouse's current year tax due
When these fields are marked, the refund for the taxpayer / spouse transfers to the spouse. When a refund is both applied to estimates and credited to the spouse return, UltraTax first applies the refund to estimates then applies any remaining balance to the spouse return.
Other state credit (Force)
UltraTax CS completes the Local EIT Credit Taxes Paid Worksheet based on the Schedule GL and the attached Philadelphia returns. Complete the statement windows to override the calculated amounts. When overriding the calculated amounts, all 4 columns of the statement window must be entered.
To force the Local EIT Credit Taxes Paid Worksheet when there are no calculated amounts, the Description, Double taxed income, and Tax Paid to Other State columns are required entries.
For Resident returns only, UltraTax CS will attach Schedule GL to the return at print time when the Local EIT Credit Taxes Paid Worksheet is automatically calculating for the given state.
UltraTax CS automatically limits the nonrefundable credits to the Local EIT tax calculated on the return minus the flat tax entered on the EIT screen.
The following amounts from the Schedule GL are used to calculate the Local EIT other state credit:
- For income amounts: Net compensation, plus Net income or loss from business, profession or farm, plus Gain or loss from sale, exchange or disposition of property.
- For taxes paid to other states: Adjusted tax paid in the other state or country.
The following amounts from the Non-Resident Philadelphia Net Profits Tax and Employee Earnings Tax returns are used to calculate the Local EIT other state credit:
- For income amounts: On the Net Profits Tax return, Non-Resident taxable income or loss. On the Employee Earnings Tax return, Gross taxable compensation.
- For local tax on double taxed income: On the Net Profits Tax return, Tax Due less 60% Business Income & Receipts Tax credit. On the Employee Earnings Tax return, Total Tax Due.
Local tax rate (Force)
UltraTax CS uses the tax rate entered in the
Resident tax rate
field on the PAEIT screen. Enter a tax rate in these fields to override the tax rate being used on the Local EIT Credit Taxes Paid Worksheet. The credit should only be applied using the ACT 511 tax rate.Nonrefundable credits
UltraTax CS automatically limits the nonrefundable credits to the Local EIT tax calculated on the return minus the flat tax entered on the EIT screen. The following nonrefundable credits are added together (Other state credit, Philadelphia Other state credit and Nonrefundable credit entered on the PAEIT screen) and the total credit is limited to the calculated tax.
Date return filed
If the date entered in this field is later than the return due date, UltraTax CS automatically calculates the penalty for failure to pay and the interest on the underpayment. If this field is blank, UltraTax CS defaults to the original due date of the return.
Penalty (Force)
UltraTax CS calculates the penalty amount based on the current year penalty rate and the date return filed. Enter an amount in these fields to override the calculated amounts. When these fields are used, UltraTax CS doesn't show the rate on the local return.
Interest (Force)
UltraTax CS calculates the interest amount based on the current year interest rate and the date return filed. Enter an amount in these fields to override the calculated amounts. When these fields are used, UltraTax CS doesn't show the rate on the local return.