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Screen PAEITInc - Pennsylvania Local Earned Income Tax Income (1040)

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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. UltraTax CS automatically creates a screen for each unique Pennsylvania city code that was entered in UltraTax/1040 in the federal St Pmt, W2, C, F, K1 screens, and the Pennsylvania PAEITOth screen. UltraTax CS gathers all income information based on each unique city code to complete the return.
The PAEITInc screen is a multiple-unit screen. UltraTax CS determines, based on data entry in UltraTax/1040 and on the PAEITOth screen, how many distinct city codes have been entered and then creates the appropriate number of PAEITInc screens. UltraTax CS automatically updates the
City code
 field and populates the remainder of the city information based on the city code.
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.

Work City Information

Work PSD code
This is the nonresident tax rate that is associated with the city code entered on this input screen. For nonresident returns, the rate in this field is used.
Nonresident tax rate
This is the nonresident tax rate that is associated with the city code entered on this input screen. For nonresident returns, the rate in this field is used. Enter the rate as
xx.xxxxx
.
If ’X’, city data entry suspends setup data transfer to this screen
When this field is marked, the data transferred to this section and the local return from
Setup
,
1040 Individual
,
Pennsylvania
,
Local cities
 is preserved. If the setup information changes, the changes won't show up on the input screen or be used in the return.

Income and Payments

Use this section to force income and payments. This section will be grayed out when there are 2 part-year Local Earned Income Tax returns being filed. To allocate the income or payment amounts using this screen when 2 part year returns are being filed, enter the amounts in the fields below located in the tab section called Part-Year Resident Information.
W-2 earnings
UltraTax CS uses the amounts entered on the federal W2 screen. Enter an amount in these fields to override the calculated amounts.
Unreimbursed employee expenses
UltraTax CS uses the amounts calculated on the Pennsylvania Schedule UE. Enter an amount in these fields to override the calculated amounts.
Other income
UltraTax CS uses the amounts from the statement window in the PAEITOth screen that have a matching city code and there is an
X
 in the
Mark if Business Income
 field. Enter an amount in these fields to override the calculated amounts.
Net income from business
UltraTax CS uses the positive amounts calculated on the Pennsylvania Schedule C, F or the statement window in the PAEITOth screen that have a matching city code and the
Mark if Business Income
 field is blank. For K1 income, only passive activity codes 3 and 4 automatically come over to the local return. Enter an amount in these fields to override the calculated amounts. Rental income entered on the federal Rent screen is no longer being included on the Local Earned Income Tax return.
Losses from business
UltraTax CS uses the negative amounts calculated on the Pennsylvania Schedule C, F or the statement window in the PAEITOth screen that have a matching city code and the field
Mark if Business Income
 is blank. For K1 losses, only passive activity codes 3 and 4 automatically come over to the local return. Enter a negative amount in these fields to override the calculated amounts. Rental loss entered on the federal Rent screen is no longer being included on the Local Earned Income Tax return.
Withholding
UltraTax CS uses the amounts entered in the federal W2 and StPmt screens. Enter an amount in these fields to override the calculated amounts.

Part-Year Resident Information

Income allocated by amounts
Enter the taxing authority city code in the statement window. UltraTax CS automatically creates a view with available city codes when the
Residency status
 field on the PAEIT screen is
P
 (Part-year resident). Use the remaining columns in the statement window to allocate the amount of income attributable to each taxing authority city lived in for part of the year:
W2 Earnings
,
Employee Bus Exp
,
Other Inc
,
Net loss from Bus
, and
Net profit from Bus
. These fields overwrite the monthly apportionment indicated in the statement window attached to the
Change of address information
 field on the PAEIT screen. If using this statement window to allocate income, all appropriate columns must be completed.
All numbers entered in this statement window should be entered as positive numbers except for
Employee Bus Exp
. If there's over reimbursement of employee business expenses, enter the amount as a negative number.
Payments allocated by amounts
Enter the taxing authority city code in the statement window. UltraTax CS automatically creates a view with available city codes when the
Residency status
 field on the PAEIT screen is
P
 (Part-year resident). Use the Withholding column in the statement window to allocate the amount of payments attributable to each taxing authority city lived in for part of the year. Use this statement window to override the calculated withholding payments.

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