2022 Pennsylvania Personal Income Tax Return Instructions (PA-40 IN)

2022

INSTRUCTIONS BOOKLET

NO FORMS INCLUDED

TAX RATE

The state income tax rate for 2022 is 3.07 percent (0.0307).

2022 TAX RETURN FILING DUE DATE

To remain consistent with the federal tax due date, the due date for filing

2022 Pennsylvania tax returns will be on or before midnight, Tuesday,

April 18, 2023.

TAX FORGIVENESS

Depending on your income and family size, you may qualify for a refund

or reduction of your Pennsylvania income tax liability with the state’s Tax

Forgiveness program. Read the instructions beginning on Page 37 to see

if you qualify.

SOCIAL SECURITY NUMBERS

When completing the PA-40 (Pennsylvania Personal Income Tax Return),

please provide the ENTIRE Social Security number for you and your

spouse (if applicable). If part of the Social Security numbers are not

provided, it can cause delays in processing your return.

2022 STATE TAX CHANGES

Beginning tax year 2022, Pennsylvania established the Child and

Dependent Care Enhancement Tax Credit. The PA-40 Schedule DC was

created for this credit. Please refer to the instructions beginning on Page

22 for more information.

The PA-40 Schedule OC is now a tax year specific form due to the

inclusion of the Airport Land Development Program and the Housing Tax

Credit.

WHERE’S MY REFUND?

Taxpayers can check the status of their refunds 24/7 online or by phone.

Visit the department’s website at www.revenue.pa.gov and select the

Where’s My Personal Income Tax Refund? link on the department’s

homepage. Or call 1-888-PATAXES to find out the status of your refund.

Taxpayers will be prompted to provide their Social Security number and

Requested Refund Amount to obtain the current status.

COMBAT ZONE AND HAZARDOUS DUTY SERVICE

Pennsylvanians serving in combat zones or qualified hazardous duty

areas have the same additional time to file their state income tax returns

and make payments as they have for federal income tax purposes. The

due date is automatically extended for 180 days from the last day of

service or the last day of continuous hospitalization for injuries incurred

in one of these areas. See Page 41 for more information.

FILE YOUR PA PERSONAL INCOME TAX RETURN ONLINE FOR FREE

Taxpayers can utilize a new online filing system to file their 2022

Pennsylvania personal income tax returns for free. Visit mypath.pa.gov

to access the new system, which also allows taxpayers to make

payments, view notices, update account information and find the answers

to frequently asked questions. You can also visit the department’s website,

www.revenue.pa.gov, to find other information on filing your personal

income tax return.

E-filing offers advantages not available to taxpayers filing by paper,

including error-reducing automatic calculators; prompt confirmation of a

successful filing; faster refund processing and direct deposit options.

Fed-State E-File: Taxpayers also have the option to electronically file

state and federal tax returns for a fee using software available from

reputable vendors.

BENEFITS OF ELECTRONICALLY FILING YOUR RETURN

SAFE: Regardless of the option you choose, the department protects

your information with the latest security safeguards.

EASY: The systems perform math calculations for you.

FAST: The department processes refunds in half of the time compared

to a paper return.

DIRECT DEPOSIT: You can have your refund deposited directly into your

checking or savings account. Direct deposit is not available with a paper

PA tax return.

CONFIRMATION: Upon filing electronically the department sends an

acknowledgement directly to you, your tax professional or Electronic

Return Originator (ERO).

REMEMBER: When you use one of the electronic filing options, do

not mail a paper copy of your tax return; instead, keep it for your

records along with your confirmation number.

You may need to submit other information such as copies of military

orders (if on active duty outside Pennsylvania), Form(s) W-2 (if your

employer withheld additional PA income tax), and tax returns you filed in

other states (when requesting a PA Resident Credit). Read and follow the

instructions. The department reserves the right to request an explanation

or supporting information for any amount that a taxpayer reports on a

Pennsylvania tax return.

PA-40 IN 04-23

2 www.revenue.pa.govPA-40

www.revenue.pa.gov

myPATH

• Request an extension of time to file; make payments, including

estimated payments; check the status of your return and refund;

update your address; calculate penalty and interest; pay tax due by

electronic funds withdrawal for PA personal income taxes; and pay

by credit/debit card.

Online Customer Service Center

• Find answers to commonly asked questions by using the

department’s Online Customer Service Center. Use the Frequently

Asked Questions feature to search the database of commonly asked

questions. If you do not find your answer in this area, you can submit

your question to a customer service representative.

PA Personal Income Tax Guide

• The recently updated PA Personal Income Tax Guide has information

that explains Pennsylvania’s income tax and many of its differences

from federal tax rules. You can only access the PA Personal Income

Tax Guide via the department’s website at www.revenue.pa.gov.

The PA Personal Income Tax Guide is divided into various sections

with topics related to many issues regarding filing personal, fiduciary

and S corporation/partnership tax returns. The PA Personal Income

Tax Guide is now internet searchable in addition to searchable within

each topic heading.

Customer Experience Center

• Call 717-787-8201 for PA personal income tax help during normal

business hours, 8:00 a.m. to 5 p.m.

1-888-PATAXES

Touch-tone service is required for this automated 24-hour toll-free line.

Call to order forms or check the status of a personal income tax account,

corporation tax account or property tax/rent rebate.

To obtain forms, visit a Revenue district office or use one of the following

services:

Internet: www.revenue.pa.gov

Pennsylvania income tax forms, schedules, brochures, electronic filing

options, and other information are available on the department’s website.

If you do not have Internet access, visit your local public library to obtain

copies of forms from the department’s website.

Email Requests for Forms: [email protected]

Automated 24-hour Forms Ordering Message Service:

1-800-362-2050.

• This line serves taxpayers without touch-tone telephone service.

Written Requests: PA DEPARTMENT OF REVENUE

TAX FORMS SERVICE UNIT

1854 BROOKWOOD ST

HARRISBURG PA 17104-2244

Free Income Tax Preparation Assistance

• You can receive free assistance in preparing uncomplicated, non-

business federal, state, and local income tax returns through the

Volunteer Income Tax Assistance (VITA) and Tax Counseling for the

Elderly (TCE) programs. Visit the department’s website, contact the

department’s nearest district office, or call the Internal Revenue

Service’s toll-free number (1-800-829-1040) for the location of

assistance sites. Taxpayers with modest incomes and older

residents are urged to take advantage of these services.

Language Services

• Non-English-speaking taxpayers can receive assistance from the

department through an interpretation service. The service covers

more than 70 languages.

Español

• El Departamento de lmpuestos puede ayudar los contribuyentes que

no hablan inglés por medio de un servicio de traducción durante el

periodo de pago de impuestos.

Federal Tax Assistance

• Federal tax account or technical information and problem solving

are available by calling: 1-800-829-1040.

• Recorded Tele-Tax Service on federal tax topics or tax refund

information is available by calling: 1-800-829-4477.

• Federal tax forms and publications are available by calling:

1-800-829-FORM (3676).

ONLINE SERVICES

OTHER SERVICES

FORMS ORDERING SERVICES

TELEPHONE SERVICES

TAXPAYER SERVICES AND ASSISTANCE

TAXPAYERS’ RIGHTS ADVOCATE

The Pennsylvania Department of Revenue has a Taxpayers’ Rights

Advocate who assists taxpayers with PA personal income tax and PA

inheritance tax problems and concerns that have not been resolved

through normal administrative procedures. It is the Advocate’s

responsibility to ensure that the department provides equitable treatment

with dignity and respect. For more information concerning taxpayers’

rights, visit the department’s website at www.revenue.pa.gov, or request

the department’s Taxpayers’ Rights Advocate brochure (REV-527) from

one of the Forms Ordering Services above.

To contact the Taxpayers’ Rights Advocate:

• Send email to: [email protected]

• Call: 717-772-9347

• Write: PA DEPARTMENT OF REVENUE

TAXPAYERS RIGHTS ADVOCATE

LOBBY STRAWBERRY SQUARE

PO BOX 280101

HARRISBURG PA 17128-0101

3www.revenue.pa.gov PA-40

PA DEPARTMENT OF REVENUE DISTRICT OFFICES

NOTE: Please call ahead to verify a district office’s address and its services or visit the department’s website at

www.revenue.pa.gov for information. Taxpayer assistance hours are 8:30 a.m. to 5:00 p.m.

ALLENTOWN

STE 6

555 UNION BLVD

ALLENTOWN PA 18109-3389

610-861-2000

ERIE

448 W 11TH ST

ERIE PA 16501-1501

814-871-4491

HARRISBURG

LOBBY

STRAWBERRY SQ

HARRISBURG PA 17128-0101

717-783-1405

NORRISTOWN

SECOND FL

STONY CREEK OFFICE CENTER

151 W MARSHALL ST

NORRISTOWN PA 19401-4739

610-270-1780

PHILADELPHIA - CENTER CITY

STE 204A

110 N 8TH ST

PHILADELPHIA PA 19107-2412

215-560-2056

PHILADELPHIA - NORTHEAST

ACDMY PLZ SHPG CTR

3240 RED LION RD

PHILADELPHIA PA 19114-1109

215-821-1860

PITTSBURGH - DOWNTOWN

411 7TH AVE - ROOM 420

PITTSBURGH PA 15219-1905

412-565-7540

PITTSBURGH - GREENTREE

11 PARKWAY CTR STE 175

875 GREENTREE RD

PITTSBURGH PA 15220-3623

412-929-0614

READING

STE 239

625 CHERRY ST

READING PA 19602-1186

610-378-4401

SCRANTON

RM 207

BANK TOWERS

207 WYOMING AVE

SCRANTON PA 18503-1427

570-963-4585

4 www.revenue.pa.govPA-40

BEFORE YOU BEGIN

Filing Due Date

You must file before midnight,

Tuesday

, April 18,

2023

. The U.S. Postal

Service postmark date on your envelope is proof of timely filing. You must

report all taxable income receive

d or

accrue

d from

Jan

. 1,

2022

throug

Dec. 3

2022

If you cannot file by the due date, request an extension of time to file.

Read the instructions

Page 41

. If you do not file your return by the due

date, the department imposes late filing penalties and interest charges.

Who Must File a PA Tax Return?

If you are a PA resident, nonresident or a part-year PA resident, you must

file a

2022

PA tax return if:

•

You received total PA gross taxable income in excess of $33 during

2022

, even if no tax is due with your PA return; and/or

•

You incurred a loss from any transaction as an individual, sole

proprietor, partner in a partnership or PA S corporation shareholder.

Minors

. PA law does not exempt a minor from the previously described

requirements to file a PA tax return even if claimed as a dependent on a

federal return. A parent/guardian must file a return on behalf of the minor

child in such circumstances.

Decedents

. The executor, administrator or other person responsible for

the affairs of a decedent must file a PA tax return if the decedent met the

previously described requirements.

Persons Not Required to File Federal Income Tax Returns. If you are

not required to file a federal income tax return, you may still be required

to file a PA personal income tax return because the requirements for filing

a return in Pennsylvania are different than federal requirements. You must

file a return in Pennsylvania if any of the situations previously described

apply. See

the

PA Personal Income Tax Guide

–

Brief Overview and Filing

Requirements for Pennsylvania Personal Income Tax Returns section

found on the department’s website, for more information.

REMINDERS FOR FILING YOUR 2022 PA-40

Supporting Schedules

An acceptable return has not been filed until all schedules required by

the department have been filed. Failing to provide required schedules

may not only delay the processing of your return, but also subject you to

late-filing penalties.

Assembling Your PA-40

Arrange your documents in the following order when submitting your 2022

PA tax return:

• Original PA-40. Do not mail a photocopy of your PA-40 or a copy of

your electronic PA tax return.

• Federal Forms, W-2, 1099-R, 1099-MISC, 1099-NEC. Photocopies

of your Form(s) W-2 (be sure the information is legible), or your

actual Form(s) W-2. Include a statement to list and total your other

taxable compensation. You must submit photocopies of your Form(s)

1099-R, 1099-MISC, 1099-NEC and other statements that show

other compensation and any PA tax withheld.

NOTE: Do not include copies of Form(s) 1099-DIV, and 1099-INT,

unless the forms show PA income tax withheld.

• PA Schedule OC, and the required supporting documents when

claiming any of the restricted tax credits that PA law allows.

• PA Schedule(s) RK-1, PA Schedule(s) NRK-1. If you did not

receive PA schedules, then submit federal Schedule(s) K-1. See

Partnership, Limited Liability Company and PA S Corporation

Partners, Members and Shareholders beginning on Page 16.

• PA Schedule(s) G-L. If you are claiming a resident credit for taxes

paid to other states, include each schedule followed by any required

supporting documents for the schedule.

• All other required PA schedules and forms, including any

additional sheets you prepared.

IMPORTANT: Please include your name(s), Social Security

number(s), tax year, and a brief line reference to the PA-40 or

PA-40 schedule for any additional sheets you include with your return.

• All other required documents, including federal schedules (where

the instructions allow the use of federal schedules), that explain the

information you entered.

• Using PA Payment Voucher (Form PA-40 V) and payment. See

the instructions on Page 25.

IMPORTANT: Do not staple your check or money order to your

Form PA-40 V or your PA-40 form. If you do not use a Form

PA-40 V, see the instructions on Page 25.

Entering Information

• Social Security Number(s)

Carefully write your SSN, and your spouse’s SSN if married, in the

boxes provided on your PA-40 form. You must enter your entire SSN.

Please double-check your SSN.

• Rounding Numbers

On the PA-40 form and schedules, show money amounts in whole-

dollars. Eliminate any amount less than $0.50 and increase any

amount that is $0.50 or more to the next highest dollar.

• Your Address

Print your name and address on the form.

NOTE: If you are using a military address, please use your APO

or FPO address.

EXAMPLES:

KEVIN TAXPAYER JOSEPH TAXPAYER

UNIT 2050 BOX 4190 USCGC HAMILTON

APO AP 96278-2050 FPO AP 96667-3931

Foreign Address Instructions

If you live outside of the U.S., it is important that you write your foreign

address on your PA-40 using the department's guidelines. Failure to use

these guidelines may delay any refunds you request or correspondence

necessary to complete the processing of your return. To comply with the

foreign address guidelines, use the following rules when completing the

address portion of your PA-40 form: write your name(s) in the spaces

provided; write the first and second line of your address in the First Line

of Address spaces; write the state/province, if one exists, and then the

foreign postal number (ZIP code equivalent), separated by a comma (do

not abbreviate on this line), in the Second Line of Address spaces; leave

5www.revenue.pa.gov PA-40

DO:

• Print in black ink

• Use UPPER CASE (CAPITAL) letters

• Print one number or letter in each box

• Leave a blank box between whole words

• Print your name – last, first, middle initial, and suffix

on the correct lines

• Print your correct street address

• Print your apartment number, suite number, room

number, rural route, floor, etc. on the first line

• Print your PO Box on the second line

• Fill in all appropriate ovals completely

• Prepare a copy before submitting your return

the State and ZIP code spaces blank; write the two-character code for

the country in the Country Code spaces. Codes can be found at

https://www.irs.gov/e-file-providers/foreign-country-code-listing-for-

modernized-e-file.

Other important rules to follow include: using all capital letters to write all

lines of the address; initials, simple given names, fictitious names or

figures are not permitted; and addresses should not have more than five

lines.

Below are two examples of properly completed foreign addresses using

the department's guidelines. Providing your address in this format will

better ensure that the department is able to contact you in the event we

need additional information, or to send you your refund on a timely basis.

Name: THOMAS CLARK

First Line of Address: 117 RUSSELL DRIVE

Second Line of Address: ENGLAND, WIP 6HQ

City or Post Office: LONDON

State:

ZIP Code:

Country Code: GB

Name: HELEN SAUNDERS

First Line of Address: 1010 CLEAR ST

Second Line of Address: ONTARIO, K1A OB1

City or Post Office: OTTAWA

State:

ZIP Code:

Country Code: CA

Privacy Notification

By law (42 U.S.C. §405(c)(2)(C)(i); 61 Pa. Code §117.16), the

Pennsylvania Department of Revenue has the authority to use the SSN

to administer the Pennsylvania personal income tax and other

Commonwealth of Pennsylvania tax laws. The department uses the SSN

to identify individual taxpayers and verify their incomes. The department

also uses the SSN to administer tax-offset and child-support programs

required by federal and Pennsylvania laws. The commonwealth may also

use the SSN in exchange-of-tax-information agreements with

governmental authorities. Pennsylvania law prohibits the commonwealth

from disclosing information that individuals provide on income tax returns,

including the SSNs, except for official purposes.

GENERAL INSTRUCTIONS

PA-40 Tax Form

If you do not electronically file your tax return, use the PA-40 form. Please

read the instructions.

Keep Your Records

The department has the statutory authority to verify and audit all of the

amounts you report on your return and accompanying schedules.

Maintain your books and records for at least four years after filing, as

evidence of the information you reported on your PA return. Basis

documentation for any item reported or potentially reportable on current

or future tax returns must be kept indefinitely or at least four years after

the asset is sold, exchanged or disposed of by a taxpayer. For example,

books and records used to calculate basis for retirement plans, stocks,

bonds, mutual funds, business assets, business interests, tuition account

programs, principal residence, etc. must be kept indefinitely.

Daytime Telephone Number

Enter the area code and telephone number where the department can

call you during business hours.

School Code and School District Name

You must enter the five-digit code and name of the school district where

you lived on Dec. 31, 2022, even if you moved after Dec. 31, 2022.

Do not enter the school district where you work. Using an incorrect code

may affect your school district’s funding. The lists of school district names

and codes are on Pages 46 and 47.

NOTE: If you do not know the name of the school district where

you resided on Dec. 31, 2022, you can obtain this information from

the Online Customer Service Center at www.revenue.pa.gov using the

school district address search tool on our website. School district names

and codes are on Pages 46 and 47.

Some examples of what to consider when entering the school district

code on a return are as follows:

• Military personnel should use the school district code for the domicile

of their spouse (if the spouse lives in Pennsylvania), their parents (if

entering the military while they are domiciled in Pennsylvania), or

the code for the school district in which they live while on federal

active military duty while stationed in Pennsylvania (if a PA resident).

• Persons residing in a nursing home or other care facility who are

planning to return to their principal residence after a temporary stay

in such facilities should enter the school district code for the physical

address of their principal residence and not the nursing home or care

facility.

DO NOT:

• Use red pen or pencil

• Use lower case letters or script

• Leave a blank box or use a punctuation mark if your

name, address, or city has Mc, Van, O, etc.

• Use dashes or other punctuation in boxes

• Print a PO Box number if the post office delivers to

your home

• Use a PO Box on any line of your address except

the line directly above your city and state

• Use an X or check mark (

) in an oval

• Erase or use correction fluid/tape

WHEN ENTERING INFORMATION

6 www.revenue.pa.govPA-40

• Persons who reside in a nursing home or care facility on a

permanent basis and have made the decision to do so (who are or

were mentally capable of making this decision) should use the

school district code for the physical address of the nursing home or

care facility.

• The residence of a person in a nursing home, long-term care facility

or similar facility is presumed to be the person’s residence prior to

becoming a patient in the home or facility, unless there is substantial

evidence that the person is legally competent and does not intend

to return to his/her previous home.

• PA residents who are students attending college inside or outside of

Pennsylvania should use the school district code for the physical

address of the domicile or principal residence of their parents.

• Nonresidents or part-year residents who did not reside in the state

as of Dec. 31, 2022, should enter 99999 in the school district code

field.

• Part-year residents who resided in Pennsylvania as of Dec. 31,

2022, should enter the school district code of the physical address

of their domicile or principal residence.

• Persons who use a mailing address other than the physical address

of the domicile or principal residence should enter the school district

code for the physical address of their domicile or principal residence.

• Persons who work outside of Pennsylvania, but maintain a permanent

place of abode inside Pennsylvania during their absence from

Pennsylvania or persons who plan to return to Pennsylvania after a

temporary relocation to another state or country who are still considered

PA residents should use the school district code for the physical address

of their permanent place of abode or the school district code of their

physical address prior to moving out of Pennsylvania.

Extension of Time to File Your 2022 Tax Return

Fill in this oval if you have an extension to file your 2022 PA income tax

return. Read the instructions on Page 41.

Amended Return

Fill in this oval only when you are amending your 2022 PA tax return.

Please read the instructions beginning on Page 42.

Residency Status

• (R) Resident

If you were a resident of Pennsylvania for all of 2022, fill in this oval.

You must report all income (losses) regardless of the source from

which you earned, received, or realized the income (loss).

Nonresidents and Part-Year Residents

Please read the instructions on Page 43. Nonresidents and part-year

residents use the same PA-40 form as PA residents.

• (N) Nonresident

If you were a nonresident of Pennsylvania for all of 2022, fill in this

oval. PA law taxes nonresidents on the income earned, received, or

realized from Pennsylvania sources during 2022. See the

instructions on Page 43 for more information.

• (P) Part-Year Resident

If you moved into Pennsylvania during 2022, fill in this oval even

though you were a PA resident at the end of 2022. If you moved from

Pennsylvania during 2022, fill in this oval even though you were not

a PA resident at the end of 2022.

PA law taxes part-year residents on all income from all sources while

a PA resident, and all income (loss) earned, received, and realized

from PA sources when not a resident of Pennsylvania. See the

instructions on Page 43 for more information.

See the PA Personal Income Tax Guide – Brief Overview and Filing

Requirements for Pennsylvania Personal Income Tax Returns section

found on the department’s website for more information. You may also

request the Determining Residency for PA Personal Income Tax Purposes

brochure (REV-611) from the department’s website, or one of the Forms

Ordering Services on Page 2.

Students

If you are a PA resident college student attending school outside

Pennsylvania or a nonresident college student attending school within

Pennsylvania, request the brochure PA Personal Income Taxes for

College Students (REV-758) for more information.

Filing Status

Fill in the oval that describes your status on Dec. 31, 2022. You do not

have to file a PA tax return if you do not individually meet the requirements

described under Who Must File a PA Tax Return? on Page 4. If you do

not live in Pennsylvania and do not have any income (loss) from PA

sources, you do not have to file a PA tax return, even if married to

someone who must file a PA tax return. If you are a PA resident who does

not have any PA income (loss) to report, you do not have to file a PA tax

return, even if married to a person who must file a PA tax return.

(S) Single

You must file as single if on Dec. 31, 2022:

1. You were not married; or

2. During 2022, you divorced or became a widow or widower, did not

remarry and/or could not or did not elect to file a joint return with a

deceased spouse.

(J) Married, Filing Jointly

You and your spouse, even if living apart or one of you is deceased, can

file a joint return for convenience. The executor(s) of the estate(s) of the

taxpayer and spouse may also elect to file jointly. To file jointly, you must

meet ALL of the following conditions:

1. Your taxable years end on the same date (not including returns with

a deceased taxpayer and/or spouse); and

2. You and your spouse elect to have the same residency period

(earliest starting date if you moved into Pennsylvania and latest

ending date if you moved out of Pennsylvania) if you are part-year

residents; and

3. Neither of you is individually claiming one or more of the credits on

PA Schedule OC, (see Page 22); and

4. Your deceased spouse’s estate has not elected to file a separate

return on his or her behalf; and

5. Neither of you is individually liable for the payment of child or spousal

support, or another liability to the PA Department of Human Services;

and

6. Neither of you is individually liable for the payment of a court-ordered

obligation arising from a criminal prosecution or proceeding.

If you and your spouse made separate estimated payments, you

should file separate tax returns, each claiming only your own

payments. If you and your spouse made your estimated payments jointly,

you should file a joint tax return. However, if you and your spouse made

estimated payments jointly and because of PA guidelines you must file

separate tax returns, you must allocate the payments by completing Form

REV-459B, Consent to Transfer, Adjust or Correct PA Estimated Personal

Income Tax Account. The form must be completed in its entirety, showing

the total number of payments made for the year and the amount of the

payments to be transferred to the spouse. Both individuals must sign the

form. This form can be sent to the address shown on the form prior to

7www.revenue.pa.gov PA-40

filing the return or a copy of the form can be submitted with both returns

when filing. This avoids processing delays and correspondence from the

department.

Joint Income - Joint Returns

Married taxpayers can file a joint tax return for convenience only. If you

and your spouse jointly own income-producing property, you must each

report your share of the income (loss). Income-producing property

includes savings accounts, businesses, securities, and real estate.

Spouses usually equally divide income from jointly owned property.

CAUTION: On a joint return, you and your spouse are each

separately liable for the entire amount of PA tax due, even if only

one of you had taxable income, and even if one of you paid your own PA

tax through withholding or estimated payments. The income and losses

of a taxpayer and spouse must be determined separately. You may not

offset the income of the taxpayer with a loss from the spouse and vice

versa. See REPORTING NET INCOME, GAINS, AND LOSSES ON

LINES 4, 5, AND 6 on Page 15 and the requirements for the schedules

reporting the income and losses for each class of income for additional

information and reporting requirements.

(M) Married, Filing Separately

You and your spouse have the option to file separate returns. However,

you and your spouse must file separate returns if:

1. Your taxable years end on different dates; or

2. Your taxable years begin on different dates for part-year residents;

3. Either of you is claiming one or more of the credits on PA Schedule

OC; or

4. Either of you is individually liable for the payment of spousal/child

support, or another liability to the PA Department of Human Services;

5. Either of you is individually liable for a court-ordered obligation to

the Administrative Office of Pennsylvania Courts; or

6. One of you is a PA resident and the other is not. However, you can

file jointly if you both elect to file as PA residents and meet all other

requirements for filing jointly. See Married, Filing Jointly beginning

on the previous page.

CAUTION: You must include your spouse’s SSN even if filing

Married, Filing Separately.

(F) Final Return

Use this filing status if you lived in Pennsylvania during 2022, but

permanently moved away or if for any other reason, you will not have any

PA-taxable income (or loss) in 2023. Provide the reason, such as you

moved to another state.

REMEMBER: Even after you move from Pennsylvania, you must report

any PA-taxable income you earned, received, or realized from PA

sources.

(D) Deceased

Use this status if the taxpayer, spouse or both died in 2022. Enter the

date(s) of death.

For tax years beginning on or after Jan. 1, 2013, a joint return can be filed

by the surviving spouse and decedent when a spouse or taxpayer dies

during the tax year if:

1. The decedent did not previously file a return for the tax year; and

2. The personal representative, executor or administrator has not been

appointed by the time the return is made, signed and filed; or

3. The fiduciary of the decedent consents to the filing of and signs the

joint return.

Also for tax years beginning on or after Jan. 1, 2013, the executor(s) of

the estate(s) of the taxpayer and spouse (if both die during the same tax

year) may elect to file a joint return on behalf of the taxpayer and spouse

if:

1. The personal representatives, executors or administrators consent

to filing a joint return; and

2. The joint return is signed by both fiduciaries.

A surviving spouse must file a separate return if the fiduciary of the estate

does not agree to a joint return or if a fiduciary of the decedent is

appointed after the filing of the joint return and the fiduciary supersedes

the joint return filing by filing a separate return on behalf of the decedent.

In cases where a joint return has already been filed by the spouse and a

fiduciary has been appointed who wants to file a separate return on behalf

of the decedent, a separate return for the surviving spouse must be filed

within 90 days of the filing of the decedent’s separate return by the

fiduciary. If the surviving spouse’s separate return is filed within 90 days,

the separate return shall be considered to be filed on the date the original

joint return was filed. Otherwise, the surviving spouse’s return shall be

considered to be filed on the date the department receives it.

FILING TIPS:

• If a joint return is filed and the taxpayer, spouse or both are

deceased, complete the married filing joint oval, the deceased oval

and the spouse and/or taxpayer ovals as well as the date(s) of death.

The surviving spouse should complete the name and Social Security

number section of the return as the primary taxpayer on the return.

• If a separate return must be filed by the surviving spouse and a joint

return was not previously filed, the surviving spouse’s filing status

should be single and no information should be included in the

deceased filing status area.

• If a separate return must be filed by the surviving spouse after having

filed a joint return, the surviving spouse should also complete the

amended return oval and include Schedule PA-40 X.

• If a separate return is filed by the decedent’s fiduciary, the fiduciary

should complete the deceased and taxpayer ovals and include the

date of death.

• If both taxpayers die during the tax year and the fiduciaries do not

elect to file a joint return, complete the taxpayer deceased oval and

include the date of death on the separate returns for each.

• If a decedent was not married when he or she died, the fiduciary

should complete the deceased taxpayer oval and include the date

of death.

CAUTION: Do not list the deceased taxpayer’s name and Social

Security number as the primary taxpayer unless both the taxpayer

and spouse die during the tax year and a joint return is filed on their

behalf.

The executor, or other person responsible for the affairs of the decedent

should also use this filing status to complete, sign, and file a separate

return for the decedent. The return must report all the decedent’s 2022

income, payments, and credits. The person signing the decedent’s return

must indicate his or her relationship to the decedent (executor or person

responsible for the affairs of the decedent).

8 www.revenue.pa.govPA-40

Surviving Spouse

If the decedent was married, the surviving spouse may be required to file

a separate return, and use the Single (S) filing status. If the decedent

made PA estimated payments, the surviving spouse may request Form

REV-459B to reconcile the estimated payments to the separate PA tax

returns. Request this form from the department’s website, or one of the

Forms Ordering Services on Page 2.

Farmers

Fill in this oval if you derived at least two-thirds of your 2022 gross income

from farming.

Pro-Forma Returns for Taxable Bankruptcy Estates

Please see the instructions for the PA-41 Fiduciary Income Tax Return

for additional information regarding the preparation of a pro-forma

PA-40 Personal Income Tax Return for a taxable bankruptcy estate.

You must report your income (loss) by applicable class, whether it is

received directly, as estate or trust income or as a distributive share of

the income of a partnership or PA S corporation. Read the instructions

for each income class.

Line 1. Compensation – Page 10

Line 2. Interest – Page 14

Line 3. Dividends and Capital Gains Distributions – Page 15

Line 4. Net Income or Loss from the Operation of a Business,

Profession, or Farm – Page 17

Line 5. Net Gain or Loss from the Sale, Exchange, or Disposition

of Property – Page 17

Line 6. Net Income or Loss from Rents, Royalties, Patents, or

Copyrights – Page 18

Line 7. Estate or Trust Income – Page 19

Line 8. Gambling and Lottery Winnings – Page 19

Federal income classifications are disregarded to the extent they are

inconsistent with PA classifications.

Generally, other or miscellaneous income is either compensation

on Line 1a, (see Page 10), or business income on Line 4, (see

Page 17). If you cannot determine the income class, contact the

department for assistance.

TAXABLE INCOME FOR PA PIT PURPOSES:

The PA-40 line number on which to report the income follows each item.

Classify means report the income in the appropriate PA income class

based on all facts and circumstances. See the PA Personal Income Tax

Guide for more information.

• Employer provided fringe benefits, unless excludable (Line 1a)

• Sick pay and disability benefits that represent regular wages, such

as sick leave pay (Line 1a)

• Allowances and reimbursements in excess of allowable employee

business expenses (Line 1a)

• The value of property received as payment for services (Line 1a)

• Delay damages received in connection with a court judgment or

settlement to the extent that the payments represent back wages

(Line 1a)

• Honoraria (Line 1a)

• Compensation as fees for performing services as an executor or an

administrator of an estate or a director of a corporation (Line 1a)

• Severance pay (Line 1a)

• Incentive payments received for terminating employment before

reaching normal retirement age (Line 1a)

• Awards and gifts given in recognition for, or given as a transfer of

cash or property, in payment for past, present, or future service as

an inducement to perform future services (Line 1a)

• Jury fees (Line 1a)

• Expert witness fees (Line 1a)

• Cash reimbursements for personal expenses, such as commuting

and day care (Line 1a)

• A discharge of indebtedness, unless specifically excludable from

taxable income (Classify)

• Damage awards and settlements to the extent that the payments

represent back wages or another uncollected entitlement to PA-

taxable income (Classify)

• Covenants not to compete, or for refraining from the performance of

services (Classify)

• Other income described in the PA income classes (Classify)

• Income for performing services as an executor or director when such

services are undertaken as part of your business or profession (Line

INCOME NOT TAXABLE FOR PA PIT PURPOSES:

• Social Security benefits and/or Railroad Retirement benefits

• Commonly recognized pension, old age, or retirement benefits paid

after becoming eligible to retire, and retiring

• United Mine Workers Pension

• Military pension benefits

• Civil Service Annuity

• Unemployment compensation and public assistance

• Payments received under federal trade assistance, trade adjustment

allowances and alternative adjustment assistance.

• Payments received under workers' compensation acts, occupational

disease acts, or similar legislation; including Heart and Lung Pension

• Payments for injuries received while working, and damages

received, whether by suit or otherwise, for personal injuries

• Sick pay and disability benefits, including payments by third party

insurers for sickness or disability (does not include amounts paid as

sick leave)

NOTE: If your employer includes your payments for sickness,

disability, and/or on-the-job injuries in Box 16 of your Form

W-2, provide a statement from your employer verifying the amount

of these payments.

• Employer-paid group term life insurance premiums

• Damage awards and settlements from physical injury or sickness

such as pain and suffering or emotional distress

• Child support

• Alimony

• Inheritances, death benefits, and income in respect of a decedent

(IRD) as defined for federal income tax purpose for purposes of

compensation (NOTE: IRD may be subject to the PA PIT in a class

of income other than compensation)

• Active-duty pay received as a member of the U.S. Armed Forces

from the U.S. government for service outside Pennsylvania (see

Page 40)

• Awards and gifts made from detached or disinterested generosity

PA INCOME CLASSES

9www.revenue.pa.gov PA-40

Deductions

PA law does not allow standard deductions, deductions for personal

exemptions, itemized deductions or deductions for personal expenses.

CAUTION: PA-taxable interest income (Line 2), dividend income

(Line 3) and gambling and lottery winnings (Line 8) are gross

taxable income classes. You may not deduct any expenses in computing

these classes of income. In computing compensation, only certain

expenses are deductible; see the PA Schedule UE instructions beginning

on Page 26. The remaining classes of income are net taxable - you may

deduct ordinary and necessary expenses paid or accrued during the

taxable year in their production. See the line instructions for each class

of income.

Cost Recovery

PA law does not permit deductions or exemptions for contributions to

retirement plans, investments in annuities, mutual funds, money market

funds, and other personal contributions, even when deducted or exempt

for federal purposes. Therefore, Pennsylvania will not tax your

distributions or the payments you receive until you have recovered an

amount equal to your contributions. Maintain your records of your

contributions. If you receive an early taxable distribution from a retirement

plan, and you do not have records of your contributions, consult your plan

administrator.

Education Savings Accounts - Qualified Tuition Programs under

IRC Section 529, like Pennsylvania 529 College and Career

Savings Program

Contributions to a Pennsylvania 529 College and Career Savings

Program account and other IRC Section 529-qualified tuition program

accounts are deductible. For additional information, see the instructions

for Line 10, Other Deductions, on Page 20 and the instructions for PA

Schedule O, Other Deductions, on Page 36.

NOTE: Certain withdrawals and distributions not used for

educational purposes are taxable. See the instructions for PA

Schedule A beginning on Page 30 for additional information.

Pennsylvania ABLE Savings Program Fund Accounts - Qualified

IRC Section 529A Accounts

Contributions to an account established under the Pennsylvania ABLE

(Achieving a Better Life Experience) Savings Program are deductible.

Earnings on a Pennsylvania ABLE account are also exempt from taxation

when used for qualified disability expenses of eligible individuals. With-

drawals for other than qualifying purposes are subject to tax as interest

income on Line 3 of PA Schedule A. Use the cost recovery method to de-

termine the amount of any non-qualifying withdrawals subject to tax for

any contributions made prior to Jan. 1, 2017. For contributions made

after Dec. 31, 2016, the entire amount of any non-qualifying withdrawal

PA-40 LINE INSTRUCTIONS

• Personal use of an employer’s owned or leased property and/or

services, at no cost or at a reduced cost

• Federally taxable punitive damages received for personal physical

injury or physical sickness, whether received by suit or by settlement

• Income from contracts of insurance for long-term care that do not

have accumulated refundable reserves payable upon lapse or

surrender

• Interest earned from an IRC Section 529 plan like the Pennsylvania

529 College and Career Savings Program when earned or used for

Qualified Higher Education Expenses as defined by IRC Section 529

(e)(3)(A)

• Federal economic impact or stimulus payments.

DIFFERENCES BETWEEN PA PIT AND IRS

For more information on differences between Pennsylvania and the IRS,

refer to the PA Personal Income Tax Guide and the specific topic sections

related to the income class for which you have a question. The following

differences are the result of recent Pennsylvania and federal legislation:

Depreciation - PA Limitations

• Bonus Depreciation

PA PIT law does not follow the federal allowances for additional

depreciation expenses. You may not use any of the bonus

depreciation elections enacted for federal purposes.

• ACRS and MACRS and IRC Section 179

Pennsylvania allows ACRS and MACRS and limited IRC Section

179 to the extent allowable under the version of the Internal Revenue

Code in effect at the time the property was placed in service, or

under Section 179 of the IRC of 1986, as amended to Jan. 1, 1997,

whichever is earlier, but not any other accelerated method. 72 PS §

7303(a.3)(Act 89 of 2002.)

• Limited IRC Section 179

The maximum deduction that PA income tax law permits using

IRC Section 179 is $25,000. If you have income (loss) from more

than one business, profession, or farm, you may not deduct more

than a total of $25,000 of IRC Section 179 expenses for all activities.

The PA Section 179 expense is phased out for purchases in excess

of $200,000.

For more information regarding what PA Section 179 expenses are

allowed or allowable, please see Informational Notice PIT 2012-05

on the department’s website at www.revenue.pa.gov.

• Intangible Drilling Costs

Per Act 52 of 2013, taxpayers that directly incur intangible drilling

and development costs (IDCs) may elect to currently expense up to

one-third of the IDCs in tax years beginning after Dec. 31, 2013. The

remainder of the IDCs may be amortized over 10 years. If a taxpayer

does not elect to currently expense his/her IDCs, he/she may

amortize the IDCs over 10 years. For tax years beginning prior to

Jan. 1, 2014, IDCs must be amortized over the life of the well.

CAUTION: Any election to expense up to one-third of the

IDCs must be made by the taxpayer incurring the IDCs. A

partner or shareholder may not make an election to expense IDCs

passed through from a partnership or S corporation.

• Other Differences

You must adjust your federal expense for the difference between

your federal depreciation and your depreciation for PA PIT purposes,

when you elect a different generally accepted method that you

consistently use.

IMPORTANT: The basis for property (where bonus

depreciation or IRC Section 179 in excess of $25,000 has

been taken for federal income tax purposes) will be different for

federal and state tax purposes. As a result, PA law requires straight-

line depreciation to be taken on these assets.

10 www.revenue.pa.govPA-40

is taxable. The department uses the FIFO method for determining when

contributions are withdrawn. For additional information regarding the de-

duction, see the instructions for Line 10, Other Deductions, on Page 20

and the instructions for PA Schedule O, Other Deductions, on Page 36.

Overview: PA-taxable compensation includes, but is not limited to:

salaries; wages; tips; gratuities; commissions; bonuses; incentive

payments; vacation and holiday pay; employer student loan payments;

student loan debt forgiveness for entering certain fields or professions;

distributions from nonqualified deferred compensation plans; certain early

distributions from retirement plans; and termination pay. The amount your

employer reports in Box 16 of your Form W-2 usually shows your PA-

taxable compensation if the W-2 includes PA withholding in Box 17. If you

are a PA resident and your W-2 does not include withholding from PA but

includes withholding from another state, you should also complete and

include the W-2 RW, Reconciliation Worksheet, with your return to

reconcile the compensation to PA-taxable compensation. If you receive

Forms 1099 or other statements, your PA-taxable compensation is the

gross amount that you received for performing services.

The amount in Box 16 of your Form W-2 may be different from the amount

in Box 1. PA law requires a PA employer to follow PA income tax rules to

determine Box 16. If you have any questions, contact your employer.

Taxable compensation for PA personal income tax purposes also includes

amounts received as:

• Executor or executrix fees from an estate;

• Fiduciary fees from a trust;

• Honorariums;

• Jury duty pay;

• Director’s fees;

• Covenant not to compete payments;

• Damages or settlements for lost wages;

• Early distributions from retirement plans or IRAs (traditional or Roth);

• Distributions from employee stock ownership plans (if not a PA

eligible plan); and

• Other non-employee compensation for services rendered.

If you have one or more of the above, you must include the amount in

your gross compensation amount reported on Line 1a and include a

statement that provides a description of the amount.

NOTE: See the W-2 Filing Tips beginning on this page and or the

1099-R Filing Tips beginning on Page 13 for additional information.

The method used to file a return will determine if copies of W-2s, 1099-

MISCs, 1099-NECs and 1099-Rs will need to be included with the filing

of the return in order for the department to verify the amount of taxable

compensation and/or to verify an amount received is not taxable for PA

personal income tax purposes. Taxpayers that file by submitting a copy

of a paper return will be required to submit additional documents not often

required by those who submit their return electronically. See the

instructions for When to Submit Forms W-2, 1099-MISC, 1099-NEC and

1099-R below.

IMPORTANT: Taxpayers with multiple W-2s and multiple types of

compensation should submit a statement that lists the amounts

and payors of the compensation along with the total amount reported on

Line 1a.

NOTE: If you do not have a Form W-2 or a federal substitute

W-2, Form 4852, you must submit evidence of your PA

compensation and tax withheld by providing pay stubs and a statement

identifying your employer and the reason you do not have a Form W-2.

Please submit legible photocopies. Keep your original documents.

When to Submit Forms W-2, 1099-MISC, 1099-NEC and 1099-R

For Paper Filed Returns:

If you file your PA-40 return in paper format, you must include actual

copies or photocopies of all Forms W-2. You must submit actual copies

or photocopies of all Forms 1099-R for all types of distributions regardless

of whether the distribution is taxable and/or non-taxable for PA personal

income tax purposes. If the amounts on Forms 1099-MISC and/or 1099-

NEC are reported as compensation or include PA-tax withheld, you are

required to submit actual copies or photocopies of the forms.

For E-Filed Returns:

If you file your PA-40 electronically, you are not required to submit an

actual copy of your W-2, 1099-R, 1099-MISC or 1099-NEC forms unless

certain conditions exist with respect to those forms. For Forms 1099-

MISC, 1099-NEC and 1099-R, you are only required to submit actual

copies of these forms if there is PA tax withholding reported on the forms.

For Forms W-2, you must submit an actual state copy or a legible

photocopy of each state copy of Form W-2 and a written explanation only

if:

1. The PA compensation you enter on Line 1a of your PA-40 is not the

same as Box 16 on your Form W-2 (you believe that the PA

compensation or withholding is incorrect).

2. Your employer gave you a handwritten Form W-2.

3. Your employer reported an incorrect amount on your Form W-2. You

must also submit a written statement from your employer.

4. Your employer withheld PA income tax from your wages at a rate

that is more than the 2022 tax rate of 3.07 percent.

5. You are a resident of a reciprocal compensation agreement state

and your employer withheld PA income tax.

6. The Medicare wages in Box 5 on your Form W-2 are greater than

your PA wages in Box 16. In this case, complete and include with

your return the PA-40 W-2 Reconciliation Worksheet. To obtain the

worksheet, use one of the Forms Ordering Services on Page 2.

7. You are a PA resident working in another state or country and did

not have PA income tax withheld by your employer.

8. You have a distribution from a nonqualified deferred compensation

plan included in Box 1 of your Form W-2.

9. You are a PA resident and your Form W-2 shows income earned or

tax withheld for another state.

10. Your Form W-2 or W-2P includes no PA compensation amount and

is or is not taxable for PA personal income tax purposes. If the

amount is not taxable for PA personal income tax purposes, include

an explanation of why the amount is not taxable.

W-2 FILING TIPS:

1. Submit photocopies of all original Forms W-2 with your return. Some

original Form W-2 documents cannot be processed by the

department’s imaging equipment (onion skin paper printed in blue

ink, for example) and could delay the processing of a return. If

possible, submit a photocopy of the Form W-2 on standard size

paper instead of the actual Form W-2.

2. If the PA-taxable wages you are reporting are less than the amount

reported on your Form W-2, please include a brief explanation of the

difference with your return and/or a letter from your employer

documenting the difference in taxable amounts.

LINE 1a. GROSS COMPENSATION

11www.revenue.pa.gov PA-40

3. If your employer withholds excess PA personal income tax at your

request, include with your return a statement from your employer

verifying the rate and amount of tax withheld for the tax year.

4. If you worked outside of Pennsylvania and your employer did not

withhold PA personal income tax, your taxable PA wages may be

higher or lower than the state wages reported on your Form W-2 in

Box 16. Amounts paid to you as retirement plan contributions,

personal use of company automobile and/or group term life

insurance may require additional adjustments to the amount reported

to the other state or country. See the PA Personal Income Tax Guide

– Gross Compensation section for additional information. You should

also complete the PA-40 W-2 RW, Reconciliation Worksheet.

5. If you are a PA resident and your W-2 includes military pay for active

duty outside PA, the amount for active duty pay outside PA is not

taxable compensation for PA personal income tax purposes. In

addition, any military pay earned as a nonresident while on active

duty within in PA is not taxable for PA personal income tax purposes.

Do not include the amounts included in Box 16 of your W-2 for active

duty military pay earned outside PA or for nonresident military pay

earned in PA in Line 1a of the PA-40. If any PA income tax is withheld

from the military pay, include the amount of tax withheld on Line 13

of the PA-40. Copies of military orders are required to be included

with returns as proof of active duty status outside PA. See the Military

Pay – Members of the Armed Forces instructions on Page 40 for

more information.

6. If any military pay is earned by a PA resident while on active duty

status within PA, the amount is taxable for PA personal income tax

purposes. Include the amount from Box 16 of your W-2 on Line 1a

of the PA-40.

7. If your W-2 includes taxable and nontaxable military pay, include a

statement with your return that provides the amounts of taxable and

nontaxable military pay and how they were determined.

PA-40 W-2 RW, Reconciliation Worksheet

If your W-2 does not contain sufficient information in Boxes 12 and 14 to

reconcile the federal and Medicare wages on your W-2 to the amount

reported as PA wages, complete and include the PA-40 W-2 RW,

Reconciliation Worksheet, with your return. The PA-40 W-2 RW, should

also be included if you received distributions of previously taxed

contributions from a nonqualified deferred compensation plan. To obtain

the worksheet, use one of the Forms Ordering Services on Page 2.

Reciprocal Compensation Agreement States

Pennsylvania has agreements with Indiana, Maryland, New Jersey, Ohio,

Virginia and West Virginia. Generally, under these agreements, one state

will not tax a resident of the other state on compensation that is subject

to employer withholding. These agreements apply to most types of W-2

compensation earned while a resident of the reciprocal compensation

agreement state. It does not apply to miscellaneous and non-employee

compensation, compensation earned while a PA resident and received

while a resident of the reciprocal compensation agreement state or

compensation paid to Ohio resident shareholder-employees with a 20

percent or greater interest in a PA S corporation who worked or performed

services in Pennsylvania in 2022.

If you are a PA resident working in one of these states, and your employer

withheld the other state’s income tax, you must file for a refund from that

state.

File early so you will have your refund before the due date for

paying your PA tax liability.

IMPORTANT: If you earn at least $8,000 in the other state, and

your employer doesn’t withhold PA income tax, under PA law you

may have to make estimated payments. Please read the information on

Page 40. If this is your situation, you are liable for Estimated Underpay-

ment Penalty. See the Line 27 instructions on Page 23.

Resident of a Reciprocal State Filing for a Refund

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. You report zero taxable compensation on Line 1a, and the PA tax

withheld on Line 13. You must submit a legible photocopy of your Form

W-2, a copy of the resident income tax return that you filed with your

resident state (without the supporting forms and schedules), and a

statement explaining that you are a resident of a reciprocal state.

Reimbursable Expenses/Cash Reimbursements for Personal

Employee Expenses

PA-allowable employee expenses are not always the same as allowable

federal business expenses. Read the instructions beginning on Page 26.

You must be able to substantiate travel expenses as to time, place and

business purpose.

Report all reimbursements and allowances paid by your employer as

compensation unless you meet all three of the following requirements:

1. The expenses are PA-allowable employee business expenses; and

2. You must, and do, account for these expenses to your employer;

and

3. Your employer reimburses you in the exact amount of the allowable

business expenses.

If you receive a fixed-mileage allowance; a fixed expense reimbursement

amount; a daily, weekly, monthly or yearly expense allowance

reimbursement; or a per-diem living expense allowance that does not

exceed applicable federal limits, you meet these requirements. Do not

report these expenses on PA Schedule UE.

Retirement, Pensions, and Deferred Compensation

• Eligible Employer-Sponsored Retirement Plans

Pennsylvania does not impose income tax on payments you receive

that are commonly recognized retirement benefits distributed from

eligible employer-sponsored retirement plans. Eligible employer-

sponsored retirement plans can, but do not necessarily, include

employer-sponsored deferred compensation plans; pension or profit

sharing plans; 401(k) plans; thrift plans; thrift savings plans; and

employee welfare plans. Ask your employer or plan administrator if

your employer’s retirement plan is an eligible plan for PA income tax

purposes. Eligible non-employer-sponsored retirement plans can,

but do not necessarily, include Individual Retirement Accounts (IRAs)

and Roth IRAs.

• Contributions

The contributions you make to your employer’s sponsored retirement

plan are PA-taxable compensation, even if your contributions are

not taxable for federal purposes or included in the state wages

shown on your W-2.

• Distributions from Eligible Employer-Sponsored

Retirement or Deferred Compensation Programs

All amounts you receive from your eligible employer-sponsored

retirement or old age benefit plan are taxable in the year you receive

the payments, except:

12 www.revenue.pa.govPA-40

1. Payments you receive after you qualify for retirement and retire.

2. Payments you receive that you rollover into another deferred

payment program or retirement IRA, but only when the

transferred amounts are not taxable income for federal

purposes.

3. Distributions from an employer-sponsored deferred

compensation plan that represent your previous contributions.

4. Payments paid to the estate or designated beneficiary upon an

employee’s death are not PA-taxable income on the employee's

final PA-40 or on the decedent’s estate or trust PA-41, PA

Fiduciary Income Tax Return or on the beneficiary’s PA-40.

5. All distributions (regardless of the distribution code reported in

Box 7 of the 1099-R) from the State Employees’ Retirement

System, the Pennsylvania School Employees’ Retirement

System, the Pennsylvania Municipal Employees’ Retirement

System, and the U.S. Civil Service Commission Retirement

Disability Plan.

6. Retired or retainer pay of a member or former member of a

uniform service computed under Chapter 71 of Title 10, U.S.

Code as amended.

Individual Retirement Accounts

• Contributions

PA law does not allow you to deduct your contributions to any IRA.

• Undistributed Income

You do not report the undistributed interest and other earnings on

the assets held in your IRA.

• Withdrawals

Distributions from an IRA, including a federal Roth IRA, are taxable

to the extent the distribution exceeds your previous contributions.

Distributions you receive after retiring but before age 59

are

taxable even if you receive substantially equal payments, and you

do not pay the federal penalty for an early withdrawal. PA law does

not have any exceptions similar to the federal exceptions for

withdrawal before age 59

. However, distributions from an IRA are

not taxable if the payments are:

1. Received, including lump sum distributions, on or after reaching

the age of 59

; or

2. Paid to the estate, or designated beneficiary, of the participant

because of the participant’s death.

• Traditional IRA Rollover

You do not have to pay PA tax on the difference between the amount

distributed from your traditional IRA and your previous contributions:

1. If you rolled over the entire withdrawal directly (trustee to trustee)

from one traditional IRA to another traditional IRA; or

2. If you withdrew from the traditional IRA and within 60 days

invested the entire (100 percent) amount you received into

another traditional IRA.

• Roth IRA Rollover

You do not have to pay PA tax on the difference between the amount

distributed from your traditional IRA and your previous contributions:

1. If you rolled over the entire withdrawal directly (trustee to trustee)

from the traditional IRA to the Roth IRA; or

2. If you withdrew from the traditional IRA and within 60 days

invested the entire (100 percent) amount you received into a

Roth IRA.

CAUTION: If federal tax is withheld from a rollover distribution, the

amount of federal tax withheld must also be reimbursed into the

new IRA account in order for the rollover to be considered nontaxable for

PA PIT purposes. See 1099-R Filing Tips beginning on Page 13 for

additional information.

IMPORTANT: For detailed information on Pennsylvania taxation

of distributions from IRAs, please review Tax Bulletin 2008-01 on

the department’s website, www.revenue.pa.gov.

Early Retirement Incentive Plans

Payments you receive as an inducement to retire early are taxable

compensation. Such payments are not part of a PA-qualifying retirement

program. Your employer includes these incentive payments on your Form

W-2 and withholds PA tax. Even when you move out of Pennsylvania,

these incentive payments remain taxable to Pennsylvania.

• Distributions

If you withdrew from your retirement or pension plan, and received

a Form 1099-R, you may have PA-taxable compensation if:

1. Your retirement plan is not an eligible employer-sponsored

retirement plan; or

2. You have not reached the retirement age or years of service

requirements under such eligible, employer-sponsored

retirement plan.

Non-Qualified Deferred Compensation Programs

With certain exceptions, Pennsylvania’s constructive receipt rules are the

same as the federal constructive receipt rules to determine when

compensation is received by a cash basis taxpayer. Following the federal

constructive receipt rule, deferrals to nonqualified deferred compensation

plans are not included in compensation. However, compensation includes

distributions from nonqualified deferred compensation plans attributable

to an elective deferral of income, regardless of whether the distributions

are paid during employment or retirement. Also, distributions of previously

taxed contributions are not taxable. If you receive distributions of

previously taxed contributions, complete and include with your return the

PA-40 W-2 Reconciliation Worksheet. To obtain the worksheet, use one

of the Forms Ordering Services on Page 2.

Federal Form 1099-R (Qualified Plans and IRAs)

The PA Personal Income Tax Guide – Gross Compensation section

contains a table which cross-references the information on the Form

1099-R with its corresponding PA income tax treatment. PA law does not

follow federal law concerning early retirement options for Individual

Retirement Accounts, IRC Section 401 plans, 403 plans, and other

federally qualified plans. To determine if the amount you received is

taxable in Pennsylvania, review Boxes 1 through 3 (the amount you

received or your distributions) and the PA tax treatment of Box 7 (the

codes that will help determine the taxability of your distribution). The

federal codes contained in Box 7 of Form 1099-R include:

• Code 1 & 2 Early Distribution

This distribution is taxable for PA purposes, unless: (1) your pension

or retirement plan was an eligible employer-sponsored retirement

plan for PA tax purposes; and (2) you retired after meeting the age

conditions of the plan or years of service conditions of the plan. If

your plan was not an eligible employer-sponsored retirement plan,

or if you have not attained the age or years of service required under

the plan to retire, you must determine the PA-taxable amount of your

distribution. You must use the cost recovery method to determine

this amount. See Page 9 for additional information.

13www.revenue.pa.gov PA-40

IMPORTANT: If you are not sure whether your plan was an

eligible employer-sponsored retirement plan under PA tax law,

ask your plan administrator.

• Code 3 or 4 Death/Disability Distribution

This is a distribution due to death and/or disability. Distributions

due to death or disability are generally not taxable for PA

purposes. However, if the distribution codes are Code 3D or Code

4D, these distributions are taxable to the extent they are taxable

for federal income tax purposes as interest income on Line 11 of

PA Schedule A.

• Code 7 Normal Distribution

This distribution from an eligible employer-sponsored retirement plan

is not taxable if you met the plan requirements (the age and/or years

of service required by the plan) for retirement, and retired after

meeting those requirements.

CAUTION: Distributions from a commercial insurance or

mutual company annuity (Code D also included with Code 7)

purchased as a retirement annuity are not distributions from an

eligible employer-sponsored retirement plan and are taxable as

interest income to the extent they are included in federal gross

taxable income. 1099-R Code 7D distributions are taxable to the

extent they are taxable for federal income tax purposes as interest

income on Line 11 of PA Schedule A. See Annuities, Life Insurance

or Endowment Contracts beginning on Page 14 and the 1099-R

Filing Tips beginning below for additional information.

• Code G or H Rollover

This is a rollover from one qualified fund to another and is not taxable

for PA purposes. See IRA Distributions on Page 14.

• Box 8

Distributions listed in this box are distributions from an insurance

policy or annuity purchased for your retirement. Such distributions

are not taxable if: (1) your insurance policy or annuity was from an

eligible employer-sponsored retirement plan for PA tax purposes;

and (2) you retired after meeting the age or years of service

conditions of such eligible plan. If you do not meet these

requirements, the taxation of your distributions is based upon what

is taxable for federal income tax purposes. See Page 14 for

additional information. This distribution is taxable as interest on PA

Schedule A, not as compensation on Line 1a.

• Box 9b

If an amount is entered in the total employee contributions box, it

may be used to determine the taxable amount of any distributions

when using the cost recovery method for PA personal income tax

purposes.

• Boxes 14 and 15

If there is state withholding noted in Box 14 of the 1099-R and the

state indicated in Box 15 is PA, report the amount of PA tax withheld

on Line 13 of the PA-40. A copy of the 1099-R reporting the

withholding must be included with the return.

IMPORTANT: All copies of Form 1099-R must be included with

your return regardless of the amount of the distributions, the

distribution code or if any PA tax was withheld or reported in Box 14.

1099-R FILING TIPS:

1. If any forms 1099-R included with the return include distribution Code

1 in Box 7 of the 1099-R, some or all of the distribution may be taxable

for PA personal income tax purposes. In order to determine the

amount taxable, you must determine the adjusted basis in the plan.

Your adjusted basis is the amount of your contributions less all

previous distributions and/or loans not repaid to the plan. The total

distribution amount in Box 1 of the 1099-R less your adjusted basis

is taxable as compensation on Line 1a of the PA-40. Copies of W-2s

showing the amounts of your retirement plan contributions or a

statement from your plan identifying the amount of your contributions

may be required by the department as proof of your adjusted basis.

2. If any Forms 1099-R with distribution Code 2 in Box 7 are included

with the return, you must determine if the distribution is from an

eligible employer-sponsored retirement or pension plan for PA tax

purposes. Eligible plans must: be in writing; include provisions for

separation of service, old age or infirmity, and long-continued service;

provide for payments at regularly recurring intervals after separation

from service until death or an option for a lump sum payment; and

does not permit the distribution of program benefits to any employee

until termination of employment except for incidental disability benefits

or the return of the employee’s previously taxed contributions and

income or gains if the employee is required to contribute to the

pension plan. If these conditions are met, the distribution is not

taxable for PA personal income tax purposes. If the plan does not

meet these conditions, the distributions are taxable for PA personal

income tax purposes to the extent they exceed the contributions to

the plan using the cost recovery method. If the plan is not a PA eligible

plan, include the taxable amount in Line 1a of the PA-40. A written

copy of the plan should be obtained from all employers in the event

the department requests verification that the plan is a PA eligible plan.

3. If any Form(s) 1099-R included with the return are from a retirement

plan from the - State Employees’ Retirement System; Pennsylvania

School Employees’ Retirement System; Pennsylvania Municipal

Employees’ Retirement System; or U.S. Civil Service Commission

Retirement Disability Plan; the distributions are not taxable for PA

personal income tax purposes regardless of the distribution code in

Box 7 of the 1099-R.

4. If any Form(s) 1099-R included with the return are reporting a

conversion of a traditional IRA to a Roth IRA (or vice versa) with

distribution Code 1 in Box 7 of the 1099-R, you may be eligible to

report the amount as nontaxable income when a direct transfer from

trustee to trustee occurs and/or when the entire distribution from the

original IRA account (including taxes withheld) is paid into the new

IRA account within 60 days of the date of the distribution. In such

cases, the distribution is not taxable for PA personal income tax

purposes. If the distribution is not a direct transfer from trustee to

trustee, or the entire distribution is not paid into the new IRA account

as a result of the conversion of the original IRA account, the

distribution is taxable for PA personal income tax purposes to the

extent the amount not transferred into the new IRA exceeds the

adjusted basis (contributions less any previous distributions) of the

original IRA before conversion. Include the taxable amount of any

distributions in Line 1a of the PA-40.

5. If any Forms 1099-R included with the return include distributions

from an annuity purchased from a commercial insurance or mutual

company, an endowment contract or a charitable gift annuity and

have a distribution Code 7 or 7D in Box 7 of the 1099-R, the

distribution is taxable as interest income for PA personal income tax

purposes to the extent the distribution is taxable for federal income

tax purposes. In addition, any Forms 1099-R with Code D included

with any other code in Box 7 of the 1099-R, the distributions are

taxable as interest income for PA personal income tax purposes to

the extent the distribution is taxable for federal income tax purposes.

You must include the amount from Box 2 of the 1099-R for any

annuities or endowments on Line 11 of PA Schedule A. You must

14 www.revenue.pa.govPA-40

report the amount from Box 2 of the 1099-R for any charitable gift

annuities on Line 12 of PA Schedule A.

6. If any Forms 1099-R included with the return are distributions from

an employee stock ownership plan (ESOP) that is deemed to be a

non-allocated stock dividend, the full amount of the distribution is

taxable as compensation. If the distribution is after the stock has been

allocated to the participants, the distribution is taxable as dividend

income for PA personal income tax purposes. Enter the amount of

the distribution on Line 8 of PA Schedule B with “Allocated ESOP

Stock Dividend” as the description.

7. If any Forms 1099-R included with the return include distributions of

excess contributions and earnings on the excess contributions

(distribution Codes 8 and/or P in Box 7 of the 1099-R), the

distributions are taxable for PA personal income tax purposes to the

extent there are earnings or excess employer contributions included

with the distribution. You must include a letter or other documentation

from your employer or plan administrator with your return that

provides the amount of excess employee contributions only. Include

any earnings on the excess contributions or any excess employer

contributions as taxable compensation on Line 1a of the PA-40.

8. If any Forms 1099-R included with the return include distribution Code

4 in Box 7 of the 1099-R, the amount in Box 1 of the 1099-R is

eligibility income for Schedule SP, Special Tax Forgiveness purposes.

The amount should be included in Section III, Eligibility Income, of

Schedule SP on Line 4, Insurance proceeds and inheritances.

9. If any Forms 1099-R included with the return are to a beneficiary from

a qualified joint survivor annuity reporting the distributions to the

taxpayer using Code 7 instead of Code 4 in Box 7 of Form 1099-R,

the amount in Box 1 of the 1099-R should also be included as

eligibility income for Schedule SP, Special Tax Forgiveness purposes.

The amount should be included in Section III, Eligibility Income, of

Schedule SP on Line 4, Insurance proceeds and inheritances.

10. If any forms 1099-R included with the return include a distribution

from an ESOP within a 401(k) (also known as a KSOP) other than a

rollover distribution, you must provide a copy of the plan document

with your PA-40 in order for the department to determine if the amount

of the distribution is taxable.

11. If any forms 1099-R included with distribution Codes 3, 6 or 7

(exclusive of Code 7 from annuities or endowment contracts

purchased by you from insurance companies or charitable gift

annuities) are included with the return, the amount of the distribution

is not taxable for PA personal income tax purposes and should not

be included in Line 1a of the PA-40.

IMPORTANT: If you have any 1099-R distribution amounts

reported as compensation on Line 1a of the PA-40, you must

include a schedule providing how the taxable amount was determined

and/or have the documentation available to support the amount of

adjusted basis for distribution Codes 1 or 2.

NOTE: Include any PA withholding reported in Box 14 of the 1099-

R in Line 13 of the PA-40.

IRA Distributions (60-day rollover rule)

If you received a distribution from an IRA (before age 59

and retiring)

and rolled the entire distribution (100 percent) into a Roth IRA directly, or

within 60 days, the distribution is not taxable income for PA purposes. If

you did not roll the entire distribution into another IRA, you must report

PA-taxable income to the extent the distribution exceeds your

contributions that is apportionable thereto.

IMPORTANT: If you retired, but did not reach age 59

, you must

report your distributions on a cost recovery basis until you reach

age 59

Annuities

If you received a distribution from an annuity that is not an employer-

sponsored retirement plan, see Annuities, Life Insurance, or Endowment

Contracts beginning on this page.

Review the instructions beginning on Page 26 to determine if you can

deduct expenses from your PA-taxable compensation. Follow the

instructions. PA law does not follow federal law for allowable employee

business expenses. EXAMPLE: You may deduct 100 percent of your PA-

allowable expenses on the PA Schedule UE. If claiming expenses on PA

Schedule UE, briefly describe your occupation or job in the space

provided. If your spouse also has expenses, describe his or her

occupation or job on a separate PA Schedule UE.

IMPORTANT: The department has the legal authority to request

evidence that your expenses are allowable for PA purposes.

Subtract Line 1b from Line 1a.

Report all PA-taxable interest income received or credited during the year.

Generally, Forms 1099-INT and similar statements from financial

institutions show the interest amount. You do not have to submit these

forms and statements. PA taxable interest income includes but is not

limited to interest income from personal savings and checking accounts,

insurance contracts, obligations of other states (not Pennsylvania), and

investments. See the instructions beginning on Page 30 for when to

complete and submit PA Schedule A.

Interest income from direct obligations of the U.S. government, the

Commonwealth of Pennsylvania, and political subdivisions of

Pennsylvania is tax exempt. For a list of exempt obligations, obtain Tax

Exempt Obligations for Pennsylvania Personal Income Tax Purposes

(Form REV-1643) from one of the Forms Ordering Services on Page 2.

How to Classify Interest Income

You must classify interest, regardless of how you report the income for

federal purposes. Report personal interest on Line 2. Otherwise, include

interest:

• From business accounts, working capital interest, and accounts

receivable in determining profit (loss) on a PA business schedule;

• From installment sales on PA Schedule D-1; and

• From rental security deposits in determining income (loss) on PA

Schedule E.

Money Market Funds, Mutual Funds

and Other Investment Companies

Include the earnings distributed to you (other than withdrawals of your

previously PA-taxed contributions) as dividend income on Line 3.

Annuities, Life Insurance or Endowment Contracts

If you invested in an annuity, including a retirement annuity that is not part

of an employer-sponsored retirement program, you may have PA-taxable

income when you begin receiving annuity payments. If you are required

to report an amount from an annuity for federal income tax purposes, you

LINE 1b. UNREIMBURSED EMPLOYEE

BUSINESS EXPENSES

LINE 1c. NET COMPENSATION

LINE 2. INTEREST INCOME

15www.revenue.pa.gov PA-40

are required to report the amount as interest income for PA PIT purposes.

Also, if you are required to report an amount from a life insurance and

endowment contract for federal income tax purposes, you are required

to report the amount as interest income for PA personal income tax

purposes. Report any annuity, life insurance or endowment contract

amounts reported for federal income tax purposes as interest income on

Line 11 of PA Schedule A.

Charitable Gift Annuities

If you established a gift annuity to a charitable organization from which

you are receiving periodic payments, you have PA-taxable income.

Charitable gift annuities report their income as interest income on Line

12 of PA Schedule A using the amounts reported or included in gross

income for federal income tax purposes (ordinary income and capital

gains income) regardless of when they began reporting the income from

that charitable gift annuity. In the event that a charitable gift annuity is

exchanged or sold in the future, the PA basis in a charitable gift annuity

will be different from the federal basis for charitable gift annuities from

which payments began prior to Jan. 1, 2005. Income from the sale or

exchange of a charitable gift annuity is reported on PA Schedule D.

Forfeited Interest Penalty

You may offset the penalty for premature redemption or withdrawal of a

time savings account or certificate of deposit, only against the interest

income you received in the same taxable year from that account or

certificate. You cannot offset this penalty against other interest income. If

your total penalty exceeds the related interest income, you may report

the excess as a loss on PA Schedule D.

Report all dividend income received or credited during 2022. You do not

have to submit your Form(s) 1099-DIV and other statements. See

instructions for this schedule beginning on Page 31 for when to complete

and submit PA schedule B. You cannot substitute a Federal Schedule B

for PA Schedule B.

Capital Gains Distributions

Report capital gains distributions from your mutual funds from Box 2a of

your 1099-DIV as PA-taxable dividend income, even though you report

such distributions as capital gains on federal Schedule D.

How to Classify Dividend Income

You must classify dividend income, regardless of how you report the

income for federal purposes. Report personal dividends on Line 3.

Otherwise, include dividend income from business accounts and working

capital dividend income in determining profit (loss) on your PA business

schedule.

PA Resident Shareholders in Another State's S Corporation that is

not also a PA S Corporation

If you are a shareholder in another state's Subchapter S corporation, and

that corporation elected not to be treated as a PA S corporation, include

the cash or property you actually received out of the corporation’s

earnings and profits as dividend income on Line 3. If you received

distributions in excess of the corporation’s earnings and profits, report

these distributions on PA Schedule D. Do not report the amount of your

distributable income, and do not submit the federal Schedule K-1. A

shareholder may not claim a credit for income tax paid to another state

by an S corporation that elected not to be treated as a PA S corporation.

You must include nontaxable interest and dividends as Eligibility

Income on PA Schedule SP.

Under PA law, losses may only be reported on Lines 4, 5 and 6. If entering

a loss, fill in the oval next to the line.

REMEMBER: You may not offset income in one PA income class with a

loss in any other PA income class. You cannot carry forward or carry back

gains or losses to other tax years.

Spouses, whether filing jointly or separately, may not use each other’s

expenses to reduce income or offset each other’s income and losses.

If you are married, you and your spouse may file a joint tax return for

convenience only. PA law does not provide any advantage when filing a

joint return. PA law does not allow spouses to offset income and losses

with each other, even when both have activity in the same income class.

You must follow these rules:

1. If each realizes a net profit, gain, or income, add the net income

amounts together and report that total on the appropriate line.

2. If each realizes a net loss, add the net losses and report that total

on the appropriate line. Fill in the oval next to that line.

3. If one spouse has a net profit, income or gain and the other spouse

has a net loss, report only the net income on the appropriate line.

Do not take into account the spouse’s loss.

EXAMPLES:

Line 4. Mary and Ben file a joint tax return. Mary owned a flower shop,

and realized a net profit of $5,000. Ben was a shareholder in a PA S

corporation, and received a PA Schedule RK-1 reporting $35,000 of

business income. They jointly owned a small retail store and realized a

loss of $8,000. They report $32,000 on Line 4 from Mary’s net income of

$1,000 ($5,000 less her half of the $8,000 loss), plus Ben’s net income

of $31,000 ($35,000 less his half of the $8,000 loss).

Line 5. They sold the retail store for a $6,000 loss. Mary sold stock that

she owned individually for a $9,000 gain. Ben sold stock that he

individually owned for a $3,000 loss. On Line 5, they report a gain of

$6,000. Mary’s net gain is $6,000 ($9,000 less her half of the $6,000 loss).

Ben’s net loss is $6,000 (his $3,000 stock sale loss and his half of the

$6,000 loss on the sale of the store). Since Ben's separate loss may not

reduce Mary’s gain, they report a gain of $6,000 on Line 5.

Line 6. They jointly owned a rental property and realized a loss of $2,000.

Mary was a partner in a rental partnership and her share of the

partnership’s loss was $1,000. Ben’s PA S corporation realized a loss

from its rental operations. His share of the loss was $4,000. Mary's total

loss was $2,000 and Ben's total loss was $5,000. On Line 6, they report

the total loss of $7,000 (and fill in the oval) since they each individually

realized a total net loss.

PA-Taxable Income. On their jointly filed 2022 tax return, they report total

taxable income of $38,000: Line 4 of $32,000 and Line 5 of $6,000, not

taking into consideration their Line 6 loss of $7,000.

Submit the required Pennsylvania schedule for each amount you report

on Lines 4 through 8. Read the instructions for each income class

carefully. You can obtain the schedule(s) you need from one of the Forms

Ordering Services on Page 2.

CAUTIONS: A taxpayer and spouse may not report the income

from joint ownership of a business that is considered a qualified

joint venture for federal income tax purposes on a single PA Schedule C.

LINE 3. DIVIDENDS AND CAPITAL GAINS

DISTRIBUTIONS FROM MUTUAL FUNDS

REPORTING NET INCOME, GAINS, AND

LOSSES ON LINES 4, 5 AND 6 ONLY

PA SCHEDULES

16 www.revenue.pa.govPA-40

A taxpayer and the taxpayer’s spouse must each file a separate Schedule

C to report their shares of the income from a qualified joint venture. See

the PA Schedule C instructions for additional information.

If you do not provide the required schedules, the department will need to

request the missing information. Failing to provide schedules that the

department requires will delay the processing of your tax return and

therefore delay the initial date your return is considered to be complete.

PA Schedules RK-1 and NRK-1

These schedules show your share of income (loss) for each PA income

class. You report your share of income (loss), whether distributed or not,

in the same PA income class in which the entity realized the income (loss).

If you received any guaranteed payments, add those payments to your

share of income (loss) as shown on your Pennsylvania schedules. The

partnership, limited liability company or PA S corporation deducts all

allowable expenses and other allowable adjustments. If your partnership,

limited liability company or PA S corporation requires that you incur direct

business expenses, and the expenses are allowable unreimbursed

expenses for PA purposes, you must itemize them on a separate

statement. The department may require, at a later date, a copy of the

partnership or limited liability company agreement or articles of

incorporation that require the partner, member or shareholder to pay

expenses out of his or her personal assets. You cannot deduct any

personal expenses or expenses that you incur for your own convenience.

Copies of PA Schedules RK-1 or NRK-1 must be submitted for each S

corporation, partnership or limited liability company in which you are a

shareholder, partner or member. Copies of PA Schedules RK-1 and

NRK-1 must be submitted with all paper returns filed. Electronically filed

returns do not require the separate submission of these schedules as

they are electronically submitted with the electronic return. In cases where

a PA Schedule RK-1 or NRK-1 is not made available, federal Schedule

K-1 should be provided. Federal Schedules K-1 cannot be used to

prepare electronically filed returns as they cannot be electronically

submitted to the department. However, if the software product being used

supports the attachment of PDF files and the income reported on the

federal Schedule K-1 is converted to and reported by PA classification

rules, a federal Schedule K-1 can be used to prepare electronically filed

returns if the schedule and supporting statements are included with the

PDF attachment feature.

PA Resident Shareholder and/or Partner of an S Corporation or

Partnership from Another State

If you are a PA resident shareholder of an S corporation or a PA resident

partner in a partnership that does business entirely within another state,

the entity is also required to file a PA-20S/PA-65 PA S Corporation/

Partnership Information Return as a result of having a PA resident

shareholder or partner. You should receive a PA Schedule RK-1 from that

entity which you must submit with your PA-40 return to report your share

of the income (loss) whether distributed or not, as shown on your PA

Schedule(s). All the shareholders may also elect to not be taxed as a PA

S corporation by filing Form REV-976, Election Not To Be Taxed As a

Pennsylvania S Corporation. You or the S corporation can obtain this form

by using one of the Forms Ordering Services on Page 2.

PA Resident Partner and/or Shareholder

If you are a partner in a partnership or a shareholder of a PA S

corporation, you should receive a PA Schedule RK-1. You must submit a

copy of each PA Schedule RK-1 and report your share of income whether

distributed or not as shown on your PA Schedule(s). If the partnership

does not provide a PA Schedule RK-1, you still must report and classify

the income (loss) from the federal Schedule K-1 according to the

instructions for each PA income class. You must also submit a copy of

your federal Schedule K-1 and related supporting schedules where

applicable that provide information as to the classification of the income

from the federal Schedule K-1.

Nonresident Partner and/or Shareholder

If you are not a resident of Pennsylvania, but are a partner in a PA

partnership or a shareholder of a PA S corporation, you should receive a

PA Schedule NRK-1. You must submit a copy of each PA Schedule NRK-

1 and report your share of PA-taxable income (loss) whether distributed

or not as shown on your PA schedule(s). If the partnership does not

provide a PA Schedule NRK-1, and the partnership has income (loss)

from PA sources, you still must report and classify the income (loss) from

your federal Schedule K-1 according to the instructions for each PA

income class. You must also submit a copy of your federal Schedule K-1

and related supporting schedules where applicable that provide

information as to the classification of the income from the federal

PARTNERSHIP, LIMITED LIABILITY COMPANY

AND PA S CORPORATION PARTNERS,

MEMBERS AND SHAREHOLDERS

REPORTING INCOME FROM PA SCHEDULES RK-1 OR NRK-1

PA Schedule PA Schedule PA-40 Reporting PA-40 Reporting Schedule and

RK-1 Line # NRK-1 Line # Line # Line # (where applicable)

1. 1. 4. -

2. - 2. Schedule A, Line 15

3. - 3. Schedule B, Line 10

4. 2. 5. Schedule D, Line 6

5. 3. 6. Schedule E, Line 22

6. 4. 7. Schedule J

7. 5. 8. -

8. - 22. Schedule G-L

9. 7. 23. Schedules OC or G-L

12. 10. 4. or 6. -

17. 15. See (1) below n/a

- 6. 17. -

All other lines All other lines See (2) below -

(1) The maximum Section 179 deduction per return is $25,000. See Informational Notice PIT 2012-05, IRC Section 179 Expense Deduction,

on the department’s website at www.revenue.pa.gov for more information. Amount reported is not an additional deduction.

(2) See the PA Personal Income Tax Guide – Pass Through Entities section for additional information regarding the reporting of the information

for all other lines on the PA Schedules RK-1 and NRK-1.

17www.revenue.pa.gov PA-40

Schedule K-1. If the income (loss) is being reported to PA from a federal

Schedule K-1 and the income (loss) is not 100 percent of the amount

from the federal Schedule K-1, a schedule or written explanation should

be submitted along with the federal Schedule K-1 explaining how the

amount reported was determined.

IMPORTANT: If the partnership only provides a federal Schedule

K-1, you must classify the income or loss according to the

instructions for each PA income class.

CAUTION: Resident and nonresident partners and/or

shareholders who are not provided PA Schedules RK-1 or NRK-1

and who must use a federal Schedule K-1 to report income and losses

may have losses disallowed by the department. In addition, partnerships,

limited liability companies and S corporations that do not file PA-20S/PA-

65 PA S Corporation/Partnership Information Return may be subject to

penalties for failure to file such returns.

Report all income (loss) from business, farm, short-term rentals of less

than 30 days and business activity from partnership and PA S corporation

schedules. You may offset your own income in this class against your

own loss or losses from other business activities. If reporting a total net

loss, fill in the oval next to Line 4 on your PA-40.

For PA purposes, determine net income (loss) under accepted principles

and practices of the accounting profession. Report your net income (loss)

from an unincorporated business or profession on PA Schedule C. File a

PA Schedule C or a PA Schedule F using your separate books and

records for PA purposes.

CAUTION: You must use PA Schedule C to report income and

expenses from a business or profession or PA Schedule F to report

income expenses for a farm. Do not use federal Schedules C or F.

Generally, you must adjust your federal amounts for PA tax purposes.

These adjustments can increase or decrease your PA-taxable income

(loss). You must maintain appropriate records of such adjustments.

Additional information regarding income and expenses required to be

adjusted is available within the instructions for PA Schedules C and F and

in the PA Personal Income Tax Guide. You may also visit the department's

website at www.revenue.pa.gov to obtain detailed information about

federal and Pennsylvania differences and adjustments.

Reporting Rental Income (Loss) as Business Activity

on Line 4 or as Rents on Line 6

Rental activity may be a business activity if meeting the conditions

described below. If in business, report your net profit (loss) on a PA

Schedule C. If not in the business of rents, report your rental activity on

a PA Schedule E on Line 6. Report rental business when:

1. You offer the use of your property with the intention of realizing a

profit; and

2. The leasing of your property is characterized by regularity and

continuity of activities; and

3. You offer the use of your property on a commercial basis to others

in a marketplace and at least one of the following applies:

• The average period of customer use is less than 30 days; or

• The property is customarily made available for use only during

defined business hours; or

• In addition to the property, the taxpayer also provides significant

services (see explanation below) to the lessee; or

• The taxpayer incurs significant operating expenses in making the

property available for lease; or

• The leasing activity is incidental to a real estate sales business.

Significant Services

Providing housekeeping service, room service, valet parking, decorating

assistance, delivery services, transportation services, and concierge

services are significant services.

However, providing heat, lighting, electric service, elevators, cleaning

public access and exit areas, collecting trash, and maintaining the

property in a usable rental condition are not usually significant services.

Include the net profit (loss) from short-term rentals recorded on

PA Schedule E, Line 21, with the net profits (losses) from all other

PA Schedules C and/or F and all business income amounts from

partnerships, PA S corporations or limited liability companies reporting

on PA-20S/PA-65 Schedules RK-1 or NRK-1 or federal Schedules K-1

on Line 4 of your PA-40 return.

Report your gain (loss) from the sale, exchange, or disposition of any kind

of intangible property and any real or tangible property. Report your share

of the gains (losses) from a partnership or PA S corporation in which you

are a member. Report your total net gains (losses) on PA Schedule D.

IMPORTANT: PA law does not distinguish between long-term and

short-term gains (losses) or have provisions relating to casualty

losses, sales to related parties, and nonrecognition of gains (losses) under

IRC Section 1031 (like-kind exchanges). PA law does not allow the

installment sale method of reporting for the sale of intangible property,

such as stock or goodwill.

You may offset your own net gains against your own losses in determining

this line. If married and you both have income (losses) in this class, see

REPORTING INCOME, GAINS, AND LOSSES ON LINES 4, 5, AND 6

on Page 15. If you realize an overall net loss, fill in the oval next to Line

5 on your PA-40.

On PA Schedule D, report gains (losses) from selling:

• Land and buildings;

• Properties held for investment, including rental properties;

• Stocks and bonds;

• Ownership interests in partnerships and business enterprises;

• A business asset in a transaction that is not an ordinary or recurring

business transaction; and/or

• Obligations of other states and countries.

Also, include the following on PA Schedule D:

• Amounts from PA Schedules D-1, D-71, RK-1 and NRK-1.

• Amounts from PA Worksheets REV-998 and REV-999.

• Proceeds from an insurance company demutualization.

• Sales of inherited property. The basis of inherited property is its fair

market value at the date of death.

• A distribution from a C corporation (other than a dividend) that

exceeds your adjusted basis in that corporation. Please see the

instructions for Line 4 of PA Schedule D on Page 33.

LINE 4. NET INCOME OR LOSS FROM

THE OPERATION OF A BUSINESS,

PROFESSION OR FARM

LINE 5. NET GAIN OR LOSS FROM

THE SALE, EXCHANGE OR

DISPOSITION OF PROPERTY

18 www.revenue.pa.govPA-40

• A nonqualifying sale of your principal residence - obtain PA Schedule

19, Sale of a Principal Residence.

• A distribution from a partnership or PA S corporation (other than

dividends) that represents a return of your investment in that entity.

You must determine if such a distribution results in a taxable gain

by completing worksheets REV-998 or REV-999. These worksheets

are available on the department’s website.

• Gains or losses from the IRC Sections 988, 1256, and 475 or from

straddles, hedges, options or other derivatives.

Loss on the Disposition of Property

PA law recognizes a loss only on a transaction entered into for profit, and

only in the year in which an identifiable event closed and completed the

transaction and fixed the amount of the loss so there is no possibility of

any eventual recovery. Do not report a loss on the sale of property that

you did not acquire for profit, such as a personal car, furniture, or a

qualifying sale of your principal residence.

Capital Gains Distributions

Report capital gains distributions received from mutual funds as PA-

taxable dividend income, even though you report such distributions as

capital gains on federal Schedule D. See Page 15 for more information.

Involuntary Conversions

Sales, exchanges or dispositions of property resulting from an involuntary

conversion (destruction in whole or in part, theft, seizure, or requisition

or condemnation or threat or imminence thereof) that are not required to

be reported for federal income tax purposes under IRC Section 1033 are

not required to be reported for PA personal income tax purposes on

transactions occurring after Sept. 11, 2016.

Exchange of Insurance Contracts

Do not report the gain (loss) on the sale, exchange, or disposition of any

insurance contracts that are tax-exempt for federal income tax purposes

under IRC Section 1035. Tax-exempt exchanges of insurance contracts

include:

• An exchange of a life insurance contract for another life insurance

contract, an endowment contract or an annuity contract;

• An exchange of an annuity contract for another annuity contract;

• An exchange of an endowment contract for an annuity contract; and

• An exchange of one endowment contract for another endowment

contract if the dates for payments begin on or before the original

contract’s payment dates.

If the exchange of contracts has the effect of transferring property to a

non-U.S. citizen, the gain or loss is not tax-exempt. If you receive cash

or other boot in an exchange of contracts, see the PA Personal Income

Tax Guide – Net Gains or Losses from the Sale, Exchange or Disposition

of Property section for additional information.

Charitable Gift Annuities

See Page 15 for additional information on where to report income from

charitable gift annuities.

Exempt Obligations Originally Issued before Feb. 1, 1994

Do not report the gain (loss) realized on the sale, exchange, or disposition

of the following obligations, if the original issue date was before Feb. 1,

1994, regardless of the date you acquired the obligation:

• Direct obligations of the U.S. government, such as federal treasury

bills and treasury notes;

• Obligations of certain agencies, instrumentalities, and territories of

the U.S. government; and

• Direct obligations of the Commonwealth of Pennsylvania and its

political subdivisions.

IMPORTANT: You may not use any loss realized on the disposition

of the above obligations to offset other gains.

Exempt Obligations Originally Issued on or after Feb. 1, 1994

Report the gain (loss) realized on the sale, exchange, or disposition of

the above PA tax-exempt obligations, if the original issue date was on or

after Feb. 1, 1994.

IMPORTANT: You must report all such gains and can use any

losses to offset other gains.

Sale of Your Principal Residence

If you sold your principal residence in 2022 and meet the requirements

for the 100 percent gain exclusion, do not report the sale on your tax

return. This exclusion is not identical to the federal exclusion. Generally,

if during the five years preceding the sale of your home, you owned it for

at least two years, and used it as your principal residence for at least two

years, you are eligible for this exclusion.

If you used a portion of your principal residence for business purposes

during your ownership, you may have gain or loss to report on the sale.

For more information, request the brochure Sale of Your Principal Resi-

dence (REV-625) and PA Schedule 19, Sale of a Principal Residence.

Also see the PA Schedule D instructions beginning on Page 32.

CAUTION: If you sold your principal residence, but you do not

qualify for the exclusion, report your gain or enter zero if you

realized a loss on PA Schedule D.

Rental income includes the amounts you receive for the use of, or the

right to use, your real or personal property.

Royalty income includes the amounts you receive for the extraction of

coal, oil, gas, or other minerals in place, and the amounts that you receive

for the use of your patents, copyrights, secret processes, formulas, good-

will, trademarks, trade brands, franchises, and similar property.

If in the business of renting your property, you report your net profit (loss)

on a PA Schedule C. Please see Page 17, Reporting Rental Income

(Loss) as Business Activity on Line 4 or as Rents on Line 6.

Gross rents and royalties include all items of gross receipts as described

above except:

1. Receipts from the sale, exchange, or other disposition of rental,

royalty, and similar property; and

2. Receipts from operating an oil, gas, or mineral interest as a business,

profession, or farm, or otherwise derived in the ordinary course of,

and from the operation of, a business.

Report the total income (loss) from all PA Schedules E and all PA

Schedules RK-1 or NRK-1. Generally, you must use PA Schedule E. You

may use federal Schedule E, if using only Part I, and with the following

adjustments:

• Report passive rental/royalty loss in full, rather than carry it over to

future years.

• Add any capital gains and distributions that you report on other

federal schedules.

• Do not take any depreciation expense on sales tax that you elected

to currently expense for PA personal income tax purposes.

LINE 6. NET INCOME OR LOSS FROM RENTS,

ROYALTIES, PATENTS, OR COPYRIGHTS

19www.revenue.pa.gov PA-40

• Optional: Deduct sales tax on acquired property as an expense

currently rather than add it to the basis of the property as required

for federal purposes.

IMPORTANT: If you currently expense such sales tax, the

basis of that property will differ from the federal basis, and you

must adjust your depreciation expense accordingly. You cannot

expense sales tax and still take depreciation on the sales tax. If you

do not expense sales tax, you may add such sales tax to the cost basis

of the property and depreciate the aggregate cost plus sales tax.

• You must separately show your share of any rental or royalty gain

(loss) that you realize as a partner, a shareholder of a PA S

corporation, or other entity.

You may only offset your own net income and losses in determining the

amount to report on this line. If married and you both have income (losses)

in this class, see REPORTING NET INCOME, GAINS AND LOSSES ON

LINES 4, 5, AND 6 ONLY on Page 15. If you realize a total net loss, fill in

the oval next to Line 6 on your PA-40.

CAUTION: Generally, PA law follows IRC Section 280A if you rent

or lease your property, but do not intend to realize a profit.

Therefore, your rental expenses are limited to your rental income, and

you may not use a loss. If you rent or lease your property to realize a

profit, read the description of Reporting Rental Income (Loss) as

Business Activity on Line 4 or as Rents on Line 6 on Page 17 to

determine if you have a business activity that you should report on PA

Schedule C.

Rental and Royalty Allowable Expenses

You deduct those expenses that you paid or incurred during the taxable

year that are ordinary and necessary for:

1. The production of, or collection of, rents and royalties; or

2. The management, conservation, or maintenance of rents, royalties,

patents, copyrights, and similar property.

See the PA Schedule E instructions beginning on Page 33 for the

allowable expenses. You may not deduct expenses for your own labor,

capital investment, or capital improvements.

You recover costs associated with capital improvements through

depreciation deductions. You may not deduct personal expenses or that

part of any expense that is personal.

Rental Income (Loss) on Line 6 or Net Gain (Loss) on Line 5

• Lease with an Option to Buy

A lease with an option to buy may be a purchase contract under

accepted accounting principles and practices. If it is, the payments

you received under the contract are payments of the purchase price

and are not includable as rental income. Report such income on PA

Schedule D.

• Selling Mineral Interests, Patents, or Copyrights

If you gave up all rights to mineral interests, patents, or copyrights,

the amounts you received are considered payments for the sale or

exchange of property. Report such income on PA Schedule D.

As a beneficiary of an estate or trust, you report the total PA-taxable

income that the estate or trust must distribute, pay, or credit to you on PA

Schedule J. You cannot report a loss as a beneficiary for PA purposes.

CAUTION: You should receive a PA Schedule RK-1 and/or NRK-

1 from the estate or trust. If you received a federal Schedule K-1,

you must report only the total income, not taking into account any losses,

shown on the federal Schedule K-1. Add the total of income reported on

federal Schedule K-1 as interest, dividends, long-term and short-term

gains, annuities, royalties, trade or business income, rental income, etc.

If you included any of these amounts on a PA schedule, other than PA

Schedule J, adjust your PA schedule(s) accordingly. Include a photocopy

of the federal Schedule K-1 with your return for each nonresident estate

or trust and/or each estate or trust for which you fail to receive a PA

Schedule RK-1 and/or NRK-1.

Cash and property you acquire from an estate or trust by gift,

bequest, devise, or inheritance is not taxable. You must report any

PA-taxable income that you subsequently earn or receive from that cash

or property.

Revocable Trusts

The person (settlor) who establishes a revocable trust (including grantor

trusts that are revocable) does not file a PA-41 if, under the governing

instrument, he/she retains authority to:

1. Completely revoke the trust without the declaration of new uses or

the consent of any other party; and

2. Revest in himself/herself the legal title to the corpus of the trust,

without the consent of any other party.

If you establish a revocable trust, report the income (loss) that the trust

earns, receives, and realizes in the appropriate PA income class on your

PA-40 personal income tax return. Do not report the amounts on PA

Schedule J.

When submitting supporting schedules and statements showing the name

of the trust, write REVOCABLE clearly on the schedule.

Grantor Trust

A grantor trust generally files a PA-41. The beneficiaries of the trust,

including the grantor, if he/she receives income from the trust, report the

income as beneficiaries on their PA Schedules J.

PA law imposes its income tax on PA residents on all gambling and Lottery

winnings from any source, including cash prizes from playing the

Pennsylvania Lottery paid on or after Jan. 1, 2016. As a PA resident, you

must also include gambling and lottery winnings from other states and

countries. See the department’s website for additional information.

Nonresidents

PA law imposes its income tax on nonresidents on all gambling and lottery

winnings from PA sources, including cash prizes from playing the

Pennsylvania Lottery paid on or after Jan. 1, 2016. Nonresidents should

report only gambling and lottery activity that occurs in PA. Do not report

winnings or losses from wagers placed in any other state or country on

PA Schedule T.

Gambling and lottery winnings include cash, the value of property

(automobiles, jewelry, electronic devices, appliances, clothes, etc.), the

value of the use of property (trips, vacations, airline tickets, cruises, etc.),

and other items of value except noncash prizes of the Pennsylvania

Lottery. You may only deduct your costs of gambling, wagering, betting,

and playing lotteries from your winnings. You may not deduct any

expenses (programs, tip sheets, travel, meals, lodging, etc.) that you

incurred to take part in gambling, wagering, betting, and lottery activities.

LINE 7. ESTATE OR TRUST INCOME

LINE 8. GAMBLING AND LOTTERY WINNINGS

20 www.revenue.pa.govPA-40

IMPORTANT: You may only deduct the cost of Pennsylvania

Lottery tickets from PA-taxable gambling and lottery winnings for

tickets purchased on or after Jan. 1, 2016.

Powerball and Mega Millions

If you purchase a Powerball or Mega Millions ticket in Pennsylvania,

whether a PA resident or not, any cash prize you win is taxable for PA PIT

purposes if the prize payment is made on or after Jan. 1, 2016. If you are

a PA resident and purchase a Powerball or Mega Millions ticket in another

state, any prize you win is PA-taxable income regardless of the date the

prize is paid.

Report your PA-taxable winnings on PA Schedule T. Spouses must report

their winnings separately. The payers of prizes provide the department

with copies of the federal Form(s) W-2G that they submit to the IRS.

Documenting Gambling and Lottery Winnings and Losses

Taxpayers claiming gambling winnings and losses must be able to

document their winnings and losses. This documentation should not be

included with your return, but may be requested at a future date by the

department. You should keep an accurate diary or similar record of

winnings and losses. In addition to a diary, you should have other

documentation to support the entries within the diary. Some but not all of

the documents that can be used to support gambling winnings and losses

include: federal Form W-2G, Certain Gambling Winnings; federal Form

5754, Statement by Person(s) Receiving Gambling Winnings; wagering

tickets; canceled checks; substitute checks; credit records; bank

withdrawals; and statements of actual winnings or payment slips provided

by the gambling establishment.

Some examples of the record keeping for slot or electronic gaming

machines may include a record of the machine number and all winnings

by date and time the machine was played as well as statements of actual

winnings, payment slips, or other documentation provided by the gambling

establishment. Record keeping for harness or horse racing includes a

record of the races, amounts of wagers, amounts collected on winning

tickets and amounts wagered on losing tickets as well as the tickets

themselves. For more information regarding other forms of gambling and

the record keeping and documentation to support gambling winnings and

losses, please see IRS Publication 529, Miscellaneous Deductions.

PA Withholding on Gambling and Lottery Winnings

PA personal income tax withholding is required for all Pennsylvania Lottery

cash prizes greater than $5,000 paid after July 12, 2016. In addition, many

of the casinos in Pennsylvania offer voluntary withholding of PA personal

income tax. If you have PA tax withheld included in Box 15 of federal

Form(s) W-2G, report the withholding on Line 7 of PA Schedule T. You

must also include a copy of your federal Form(s) W-2G with your return.

See the instructions for Line 13 on the next page for additional information.

Add only the positive income amounts from Lines 1c through 8. Do not

add, subtract, or take losses into consideration.

IMPORTANT: You cannot use a loss that you report in one income

class on your tax return to reduce income in any other class.

PA law allows four deductions against income. Deductions are allowed

for: Medical Savings Account contributions; Health Savings Account

contributions; IRC Section 529 Qualified Tuition Program contributions,

and IRC Section 529A Pennsylvania ABLE Savings Account Program

contributions. If you are claiming a deduction for any of these contributions

you made, you must enter a code for the type of deduction you are

claiming in the block provided next to the line description. Descriptions of

the five codes that can be entered in that block are as follows:

M – Medical Savings Account contribution deduction;

H – Health Savings Account contribution deduction;

T – Tuition Account Program contribution deduction;

A – Pennsylvania ABLE Savings Account Program contributions;

C – Combined deduction from two, three or all four contribution

deductions.

You must also complete PA Schedule O and include the information

required for each contribution as discussed in the specific instructions. The

total deductions you claim cannot reduce your taxable income below zero.

Medical Savings Account and Health Savings Account

Contributions

Pennsylvania follows federal rules for these deductions. If you can take

these deductions on your federal return and you wish to claim them for

PA purposes, you must complete PA Schedule O and include a copy of

federal Form 1040 Schedule 1 and Pages 1 and 2 of your federal Form

1040 with your PA income tax return. You may not claim these deductions

if you cannot claim them for federal income tax purposes. The amount

you report as deductions cannot exceed the federal limits.

IRC Section 529 Qualified Tuition Program Contributions

Pennsylvania allows a maximum deduction of $16,000 per beneficiary,

per taxpayer for IRC Section 529 Qualified Tuition Program contributions

for 2022. A taxpayer and spouse each may deduct $16,000 per

beneficiary. For additional information on deductions and limitations, see

the instructions for PA Schedule O on Page 36.

NOTE: You may not claim a deduction for a rollover of an account

from one IRC Section 529 plan into another IRC Section 529 plan.

You also may not claim a deduction for the changing of beneficiaries within

an account for an IRC Section 529 plan.

IRC Section 529A Pennsylvania ABLE Savings Account

Program Contributions

The maximum contributions to any one IRC Section 529A Pennsylvania

ABLE Savings Program account by one or more contributors cannot

exceed the annual federal gift tax exclusion amount. In addition, the

maximum contributions by a contributor to one or more accounts cannot

exceed the annual federal gift tax exclusion amount. The current annual

federal gift tax exclusion amount is $16,000. For additional information

on deductions and limitations, see the instructions for PA Schedule O on

Page 36.

NOTE: You may not claim a deduction for a rollover of an account

from one IRC Section 529A plan into another IRC Section 529A

plan. You also may not claim a deduction for the changing of beneficiaries

within an account for an IRC Section 529A plan.

LINE 9. TOTAL PA TAXABLE INCOME

LINE 10. OTHER DEDUCTIONS

21www.revenue.pa.gov PA-40

PAYMENTS AND CREDITS

Enter your total PA tax withheld from Box 17 of your federal Form(s) W-

2. Include the PA tax withheld from PA Schedule T or from Box 15 of your

federal Form(s) W-2G. Also include any PA tax withheld from Box 14 of

your federal Form(s) 1099-R, Box 15 of your federal Form(s) 1099-MISC

and/or Box 5 of your federal Form(s) 1099-NEC.

IMPORTANT: If your PA tax withheld is more than 3.07 percent,

you must submit your Form W-2, or a legible photocopy, and a

written explanation why your employer withheld at a higher rate. If you

include PA tax withheld from federal Forms 1099-R, 1099-MISC, 1099-

NEC and/or W-2G, you must submit your Forms 1099-R, 1099-MISC,

1099-NEC and/or W-2G, or legible photocopies of the original forms, with

your return.

CAUTION: Do not include nonresident tax withheld from limited

liability companies, partnerships, S corporations and/or estates

and trusts. Include nonresident withholding from those entities on Line

17 of the PA-40.

Estimated Payments and Credits

Visit myPATH at www.revenue.pa.gov or call 1-888-PATAXES

(728-2937) and verify your 2022 PA estimated payments and

carryover credit before completing Lines 14, 15, and 16.

If filing separately with a joint estimated account, the department may

delay one return until the other processes. If your estimated payments

are not properly posted to your account, request and file Form REV-459B.

Both spouses must sign this form. The department will apply your

estimated payments according to your written request.

Enter your credit from your 2021 PA tax return.

IMPORTANT: Do not claim the credit if you originally requested

the credit be carried over to your 2022 PA estimated account and

you subsequently requested a refund, or if you received a refund of your

carryover credit from the department. Also, if your account was adjusted

by the department or the department assessed you for a previous year’s

underpayment, do not claim the credit.

Enter your total 2022 estimated payments. Include your spouse’s 2022

estimated payments if filing jointly. Do not include any payment of tax due

made with a PA tax return.

If you are including Form REV-459B, Consent to Transfer, Adjust or

Correct PA Estimated Personal Income Tax Account, fill in the oval on

Line 15 of the PA-40.

Enter the payment you made with your 2022 extension request.

Enter the PA tax withheld by your partnership, PA S corporation, estate

or trust as reported on Line 6 of your PA Schedule(s) NRK-1. You must

submit your PA Schedule(s) NRK-1.

Add only Lines 14, 15, 16, and 17.

Tax Forgiveness Credit

Transfer the amounts for Lines 19, 20 and 21 from the PA Schedule SP

that you submit with your PA tax return.

Enter the status from Section I of your PA Schedule SP. To determine if

you are eligible to include PA Schedule SP with your return, please refer

to the instructions beginning on Page 37.

Enter the number of dependent children you are claiming from Section

II, Line 2 of PA Schedule SP.

Enter your total eligibility income from Section III, Line 11 of your PA

Schedule SP.

Enter your credit from Section IV, Line 16 of your PA Schedule SP.

If you claim a credit for Tax Forgiveness on Line 21, you must

complete and include PA Schedule SP. See the instructions

beginning on Page 37 for additional information.

Enter your total allowable PA credit for personal income tax that you paid

to another state(s). You must:

• Submit a PA Schedule G-L and a photocopy of each tax return that

you filed in another state. PA Schedule G-L and the instructions for

this schedule are not included with this booklet and may be obtained

by using one of the Forms Ordering Services on Page 2.

LINE 13. TOTAL PA TAX WITHHELD

LINE 14. CREDIT FROM YOUR 2021

PA INCOME TAX RETURN

LINE 15. 2022 ESTIMATED

INSTALLMENT PAYMENTS

LINE 16. 2022 EXTENSION PAYMENT

LINE 17. NONRESIDENT TAX WITHHELD

FROM YOUR PA SCHEDULE(S) NRK-1

LINE 18. TOTAL ESTIMATED PAYMENTS

AND CREDITS

LINE 19a. FILING STATUS

LINE 19b. DEPENDENT CHILDREN

LINE 20. TOTAL ELIGIBILITY INCOME

LINE 21. TAX FORGIVENESS CREDIT

LINE 22. RESIDENT CREDIT

CAUTION: The amount you report on Line 10 cannot exceed the

Total PA Taxable Income reported on Line 9. The amount reported

on Line 10 on a joint tax return also cannot exceed the Total PA Taxable

Income included in Line 9 for a taxpayer or spouse that would be

calculated had the taxpayer or spouse filed separately.

CAUTION: Do not report any medical insurance premiums or

itemized medical expenses from federal Schedule A on this line.

Subtract Line 10 from Line 9.

Multiply Line 11 by 3.07 percent (0.0307).

LINE 11. ADJUSTED PA TAXABLE INCOME

LINE 12. PA TAX LIABILITY

22 www.revenue.pa.govPA-40

Use Tax Worksheet

Amount

1. Purchases of taxable items subject to Pennsylvania use tax, including shipping & handling

2. Purchases of taxable services subject to Pennsylvania use tax

3. Total taxable purchases

4. Tax rate (0.07 Allegheny County, 0.08 Philadelphia or 0.06 state) 0.__ __

5. Use tax: Multiply Line 3 by Line 4

6. Additional estimated use tax from Table 1

7. Sales tax previously paid on any amount included on Lines 1 and 2 (up to 0.07 per item for

Allegheny County, 0.08 for Philadelphia or 0.06 state)

8. Total use tax liability. Add Lines 5 and 6, then subtract Line 7 and enter the amount here and

on Line 25 of your PA-40, Pennsylvania personal income tax return

If you have incomplete or inaccurate receipts to calculate use tax on purchases less than $1,000, you may use Table 1 to estimate your use tax liability based on taxable income.

The income calculation method in Table 1 is not a safe harbor method and does not preclude the department from auditing and assessing use tax liability.

Table 1 – Estimated Use Tax Due

PA-40 Line 9, Total City of Allegheny Remainder

PA-Taxable Income Philadelphia County of PA

$15,000 and less $8 $7 $6

$15,001 - $30,000 $17 $14 $12

$30,001 - $50,000 $22 $19 $17

$50,001 - $75,000 $30 $26 $23

$75,001 - $100,000 $43 $37 $32

$100,001 - $150,000 $59 $52 $44

$150,001 - $200,000 $76 $66 $57

> $200,000

.03% (0.0003) of PA-40 Line 9, Total PA-Taxable Income, for PA or $75 whichever

amount is smaller, .035% (.0.00035) for Allegheny County or $88 whichever amount is

smaller . 04 % (0.0004) for Philadelphia County or $100 whichever amount is smaller

• If you are a shareholder or partner, submit the following: a completed

PA Schedule G-L for each state in which a credit is claimed; the

statement from the partnership or S corporation providing the

breakdown of the states and amounts and classes of income subject

to tax in each state; a copy of your PA Schedule(s) RK-1; and a copy

of the other states’ tax returns. If you are a shareholder or partner

and the S corporation or partnership files a composite return on your

behalf for the other state or states, your partnership or PA S

corporation submits the other state’s return with its PA-20S/PA-65

Information Return and a copy of the other states’ tax returns are not

required to be included with the PA-40. In such cases, submit a

statement from the S corporation or partnership providing the

breakdown of the income and taxes paid to each state on your behalf.

PA Resident Shareholders in a Subchapter S Corporation that is

not also a PA S Corporation

PA law does not permit a Resident Credit if you are a shareholder in a

subchapter S corporation if that corporation elected not to be taxed as a

PA S corporation. See Page 15. See the instructions for PA Schedule

G-L for additional information. PA Schedule G-L is not included with this

booklet and may be obtained by using one of the Forms Ordering

Services on Page 2.

Enter the total of the allowable credits you can claim on PA Schedule OC

and/or PA Schedule DC.

PA Schedule OC is not included with this booklet and may be obtained

by using one of the Forms Ordering Services on Page 2.

Taxpayers claiming any credit on PA Schedule OC other than the

Educational Improvement, Opportunity Scholarship or Resource

Enhancement and Protection Tax Credits may not file a joint return and

are required to file separate returns.

The credits listed on PA Schedule OC are restricted credits meaning

taxpayers or entities must obtain special documentation authorizing the

use of the credits. Documents must also be sent to the Bureau of

Business Taxpayer Accounting, Account Maintenance Division so the

credit can be verified and applied to the taxpayer. Additional information

on restricted credits is available in the PA Personal Income Tax Guide –

Deductions and Credits section found on the department’s website at

www.revenue.pa.gov.

Beginning tax year 2022, Pennsylvania residents who receive a credit

under section 21 of the Internal Revenue Code of 1986 may claim a tax

credit against their Pennsylvania tax liability. In order to claim the

expenses on the PA Schedule DC, the taxpayer must also have claimed

the expenses on their Federal 1040 return.

The purpose of the PA-40 Schedule DC, Pennsylvania Child and

Dependent Care Enhancement Tax Credit, is to claim a credit for child

and dependent care expenses paid.

IMPORTANT: A completed copy of the federal Form 2441 and the

1040 Schedule 3 must be included with the filing of the PA-40

return. Failure to include these forms will result in the credit being

removed or deducted from Line 23 of the PA-40.

Please refer to the PA Schedule DC for additional information and

instructions.

Add Lines 13, 18, 21, 22, and 23.

Unpaid use tax liabilities from tax year 2022 may be reported and paid

using Line 25 of the PA 40. Only individual consumers should report use

tax on Line 25.

Use tax is the counterpart of sales tax and applies to taxable purchases

made over the Internet, through toll-free numbers, from mail order catalogs

and from out-of-state locations, or any other occasion where sales tax was

not charged and collected by the seller. When you purchase items or

LINE 23. TOTAL OTHER CREDITS

LINE 24. TOTAL PAYMENTS AND CREDITS

LINE 25. USE TAX

23www.revenue.pa.gov PA-40

services subject to sales tax for which the seller does not charge and

collect sales tax on the invoice or receipt, you are personally responsible

for remitting the use tax directly to the PA Department of Revenue.

The use tax rate is the same as the sales tax rate: 6 percent state tax,

plus an additional 1 percent local tax for items purchased or used in

Allegheny County and 2 percent local tax for Philadelphia.

Examples of taxable items include the following: antiques, paintings,

appliances, books, digital products, stationery, computers, exercise

equipment, sports equipment, formal clothing, furniture, furnishings,

jewelry, luggage, handbags, musical instruments, office equipment,

souvenirs, televisions, radios, stereo equipment, video equipment and

camera equipment.

Examples of taxable services include lawn care, pest control, self-storage,

building cleaning and maintenance services such as housekeeping

services. See the Retailer’s Information Guide (REV-717) for an

extensive, though not comprehensive, list of taxable items and services.

This method of reporting and paying use tax may not be used for

purchases of motor vehicles, watercraft, boats, ATVs, snowmobiles or

cigarettes.

You may use actual receipts or purchase records to calculate use tax

due. Taxpayers are encouraged to review purchase histories made

available online by popular Internet sellers and use that information to

calculate the tax due.

Receipts and purchase records should also be used for taxable items not

purchased online where sales tax was not charged by the seller and use

tax is due.

The Use Tax Worksheet on the previous page is included for your

convenience to help make your calculations. Note that you must use this

worksheet to calculate use tax due on individual purchases of $1,000 or

more.

If you paid some sales tax on items – for example, sales tax at a lower

rate paid to another state or sales tax paid to Pennsylvania but not

Philadelphia – you may offset your use tax liability by the sales tax already

paid using this worksheet.

IMPORTANT: If you do not have a use tax liability or used form

PA-1 to report and pay use tax, you must enter zero on Line 25.

The department reserves the right to assess additional use tax due if and

when it discovers evidence that the use tax liability reported on the PA-

40 is less than the actual liability.

Individuals and businesses with Pennsylvania sales tax licenses should

report use tax on their sales tax returns.

For detailed information on use tax reporting responsibilities and options,

visit www.revenue.pa.gov/usetax.

If the total of Line 12 and Line 25 is more than Line 24, enter the tax you

owe. You must pay the tax due, in full, on or before April 18, 2023. See

the instructions for payment options on Page 25.

Enter on this line all the penalties and interest you owe from filing your

return late and/or failing to pay your tax by the due date. If including Form

REV-1630, Underpayment of Estimated Tax by Individuals, or Form

REV-1630A, Underpayment of Estimated Tax by Individual Farmers, fill

in the oval on Line 27 of the PA-40. Enter the appropriate code in the

block provided.

Descriptions of the code that can be entered in the block are as follows:

L If Late Payment Penalty and Interest, Failure to File Penalty and

Interest or Late Filing Penalty and Interest is included in Line 27;

E If only the Estimated Underpayment Penalty is included in Line 27;

B If both Late Payment Penalty and Interest and Estimated

Underpayment Penalty are included in Line 27;

X Indicates there is no Estimated Underpayment Penalty due to

Exception 2 or the Special Exception rules as indicated on the

completed and included REV-1630 or the exception for farmers on

the completed and included REV-1630A.

IMPORTANT: If you do not owe any penalty or interest, do not

complete the amount blocks for Line 27 – leave them blank. If there

is no amount included on Line 27 of the return, no code should be entered

in the block provided for the code on this line unless an REV-1630 is

included with the return that indicates there is no Estimated

Underpayment Penalty due to Exception 2 or the Special Exception rules

as indicated on the completed and included REV-1630 or REV-1630A is

included with the return indicating the individual meets the exceptions for

farmers. All returns with amounts listed on Line 27 should have a code

listed in the block provided for the code on this line. See the description

of the codes listed above for the proper code to enter when an REV-1630

or REV-1630A is included.

You can determine your penalty and interest by visiting myPATH at

mypath.pa.gov. Forms REV-1630 and REV-1630A are also available on

the department’s website or by utilizing one of the Forms Ordering

Services on Page 2 of the instructions.

Include on Line 27 any penalty for failing to make estimated PA income

tax payments, or making your payments late, or underpaying your

estimated taxes.

The department will send you a notice if you do not include an amount

on Line 27, and we determine you owe late filing and/or underpayment

penalty and interest.

Estimated Underpayment Penalty

You are subject to this penalty if:

1. You received more than $8,000 of taxable income that was not

subject to PA withholding;

2. Your credits from Lines 17, 21, 22 and 23 do not offset the tax due

on the income from item 1; and

3. You failed to make timely estimated tax installment payments to

cover the difference between items 1 and 2, if any.

If you are subject to the penalty, the penalty will not be imposed if:

1. Each estimated tax installment payment due and paid is equal to

the installment payment you should have paid based upon the

income from last year’s full year return, or based upon the income

as if you filed a full year return, based upon this year’s tax rate; or

2. Each estimated tax installment due and paid is equal to 90 percent

of the installment payment due for each quarter based upon the

income you received during the months in each installment period.

You can calculate this penalty on Form REV-1630 or Form REV-1630A

that you submit with your return. Submit the appropriate form with your

return if you owe the penalty.

LINE 26. TAX DUE

LINE 27. PENALTIES AND INTEREST

INCLUDING ESTIMATED

UNDERPAYMENT PENALTY

24 www.revenue.pa.govPA-40

The department will send you a notice if we determine you owe this

penalty. If you disagree with the department's notice, you must submit

Form REV-1630 or REV-1630A to support your own calculation or claim

for an exception.

Add Lines 26 and 27. Or, if the total of Line 12 plus Lines 25 and 27 is

more than Line 24, add Lines 12, 25 and 27 and subtract Line 24. You

must pay the total due, in full, on or before April 18, 2023. See the

instructions for payment options on Page 25.

REMINDER: If you owe $1 or less, you do not have to submit a payment

with your return.

If you overpaid your 2022 PA income tax, but owe estimated

underpayment penalty, you must subtract your estimated

underpayment penalty from your overpayment.

If you file your return by April 18, 2023 and are unable to make full

payment of the taxes due, the department will bill you for the remainder

of any tax, penalties and interest due. It is better to file your return when

it is due and have a 5 percent penalty plus interest added to the amount

you owe than to not file and not pay and have up to a 25 percent penalty

plus interest added to the amount you owe.

Subtract Line 12 (and subtract Lines 25 and 27, if you entered amounts

on these lines) from Line 24, and enter the difference here.

REMINDER: The department will not issue a refund for $1 or less.

However, a $1 overpayment may be donated to one of the donation

organizations listed on Pages 44 & 45.

Refund Offsets

• PA PIT Liability. The department will apply your overpayment to

any outstanding PA personal income tax liability from a previous tax

year.

• Delinquent Spousal/Child Support. Federal law requires

Pennsylvania to establish a child-support offset program. The

Department of Revenue, in cooperation with the Department of

Human Services (DHS), intercepts PA income tax refunds of

taxpayers that are delinquent in spousal/child support, and provides

the offsets to the PA Child Support Enforcement System.

IMPORTANT: A married person who is liable for spousal/ child

support must file a separate PA tax return (Married, Filing

Separately). If a married person who is liable for support files jointly

with his or her spouse, the department will delay the refund until the

taxpayers authorize the department to offset the refund to DHS, or

the spouses file separate returns. If the taxpayers do not reply to the

department's notice, the department will process the return as

Married, Filing Jointly.

• Court-Ordered Obligations. The Department of Revenue, in

conjunction with the Administrative Office of Pennsylvania Courts

(AOPC), will intercept overpayments and apply them to any court-

ordered obligation arising from a criminal prosecution or proceeding

and pay the amount to the clerk of courts for the county in which the

order was entered. All correspondence and inquiries regarding such

offsets must be with the county clerk of courts.

• Treasury Offset Program for Delinquent PA Income Taxes. The

Internal Revenue Service (IRS) will intercept federal income tax

refunds for delinquent PA income tax liabilities. The Department of

Revenue will notify delinquent taxpayers about its intention to

intercept their federal refund and allow them 60 days to pay their

liabilities.

• State Income Tax Levy Program for Delinquent Federal Income

Taxes. The PA Department of Revenue will intercept PA income tax

refunds for delinquent federal income tax liabilities. The Department

of Revenue will provide a notice of the refund offset. The

department’s only responsibility in this levy process is sending your

refund to the IRS. Therefore, all correspondence and inquiries

regarding such offsets must be with the IRS.

If you do not enter amounts on Lines 30 through 36, or the total of these

lines does not equal Line 29, you will receive a refund check. If you

overpaid, you may apply all or part of your overpayment as follows:

LINE 30. Enter the amount of Line 29 that you want as a refund

check.

LINE 31. Enter the amount of Line 29 that you want as a credit to

your 2023 PA Estimated Tax account.

There are ten ways you can choose from to donate all or a portion of your

tax refund. However, you can only choose up to five ways in one tax year

due to space limitations on the PA-40. A code box has been included on

each of the Lines 32 through 36. You can select how you wish to donate

your refund using the following list of codes:

A - PA Breast Cancer Coalition’s Refunds for Breast and

Cervical Cancer Research Fund

B - Wild Resource Conservation Fund

C - Military Family Relief Assistance Program

D - Governor Robert P. Casey Memorial Organ and Tissue

Donation Awareness Trust Fund

E - Juvenile (Type 1) Diabetes Cure Research Fund

F - PA Children’s Trust Fund

G - American Red Cross

H - Pennsylvania 529 College and Career Savings

Program Account

I - Pediatric Cancer Research Fund

J - Veterans’ Trust Fund

IMPORTANT: You must complete PA Schedule P if you use Code

H for a Pennsylvania 529 College and Career Savings Program

Account donation. PA Schedule P is not included with this booklet and may

be obtained by using one of the Forms Ordering Services on Page 2.

For more information about each donation organization, see Pages

44 & 45.

LINE 32. Enter the code for the organization you want to donate to

and the amount of Line 29 that you want to donate.

LINE 33. Enter the code for the organization you want to donate to

and the amount of Line 29 that you want to donate.

LINE 34. Enter the code for the organization you want to donate to

and the amount of Line 29 that you want to donate.

LINE 35. Enter the code for the organization you want to donate to

and the amount of Line 29 that you want to donate.

LINES 30 THROUGH 36.

APPLICATION OF OVERPAYMENT

LINE 29. OVERPAYMENT

DONATIONS

LINE 28. TOTAL PAYMENT DUE

25www.revenue.pa.gov PA-40

LINE 36. Enter the code for the organization you want to donate to

and the amount of Line 29 that you want to donate.

The total of Lines 30 through 36 must equal Line 29.

Review Your Return

Before you sign your return, did you:

• Enter your Social Security number(s)?

• Verify that your name(s) and address are correct?

• Report all your PA-taxable income and claim all your allowable PA

credits?

• Check all the entries from Form(s) W-2 and schedules?

• Round income, loss, deductions and credit amounts to the nearest

dollar?

• Check your math?

• Enclose all required supporting forms and schedules and assemble

the return according to Page 4?

• Make a copy of your PA tax return for your records?

Your Signature(s) and Date

Read the oath before you sign and date your return. If Married, Filing Jointly,

a spouse must also sign and date the return. If you are responsible for the

affairs of a minor, disabled person, or a decedent who could not prepare

his or her own PA tax return, you must sign to file a valid tax return.

E-File Opt Out

A paid preparer must fill in this oval if the taxpayer requested to file a

paper copy of the return instead of electronically transmitting the return.

If you are preparing your return yourself, do not fill in this oval.

Preparer/Company Name, Telephone Number, PTIN

and Firm FEIN

If you paid someone to prepare your tax return, the preparer should enter

his or her name or business name, telephone number, PTIN and the

company’s EIN in the spaces provided on the return.

For tax years beginning on or after Jan. 1, 2020, Act 13 of 2019 requires

tax return preparers to provide their PTIN on all returns they prepare.

Under the law, a tax return preparer is a person who is paid to prepare a

personal income tax return or who employs one or more persons who

prepare returns for compensation. Preparation of a “substantial portion”

of a personal income tax return shall be treated as if it were the

preparation of the return. If a tax return preparer fails to provide their

PTIN, the department may impose an administrative penalty of $50 for

each occurrence up to an annual maximum of $25,000 per year.

To obtain a PTIN, preparers should consult the PTIN Requirements for

Tax Return Preparers on the IRS website.

How to Pay

You must submit your payment on or before midnight, Tuesday, April 18,

2023. Select your payment option.

You may make your payment of taxes due with your return via check or

money order with or without PA Form PA-40 V, using a credit/debit card

or through electronic funds transfer. In order for the department to more

accurately process payments, the department recommends you use the

fill-in form version of the 2022 PA-40 V found on the department’s website

at www.revenue.pa.gov.

Paying With Fill-In Form PA-40 V

Complete the fill-in version of Form PA-40 V as follows:

• Social Security number(s) - print your SSN and your spouse’s SSN

on your Form PA-40 V in the same order as they appear on your tax

return.

• Name(s) - type in your name(s) on the Form PA-40 V in the same

order as they appear on your tax return.

• Address – type in your address as it appears on your tax return.

• Payment – type in the amount of your payment and print the Form

PA-40 V. Make the check or money order payable to: PA DEPT OF

REVENUE. Do not send cash.

• Mailing your payment - Please write (1) the last four digits of your

SSN, (2) "2022 PA-40 V", and (3) daytime telephone number on your

check or money order. The department will need the last four digits

of your SSN if your check becomes separated from your Form PA-

40 V. Do not staple your check or money order to the Form PA-40 V.

Please place your Form PA-40 V and payment in an envelope with

your PA-40 tax return using the "Payment Enclosed" address

provided in the mailing instructions in the next column.

If you filed electronically, mail only your Form PA-40 V and payment to

the "Payment Enclosed" address provided in the mailing instructions

below.

Paying Without a Form PA-40 V

If you do not use the fill-in version of Form PA-40 V:

• Make your check or money order payable to:

PA DEPT OF REVENUE.

• Write (1) your complete SSN, (2) "2022 PA-40 V", and (3) daytime

telephone number on your check or money order. If you are filing a

joint return, enter the complete SSN of the taxpayer shown first on

your return. The department will need your complete SSN to more

quickly and accurately apply your payment.

Do not staple your check or money order to your return. Please place

your payment in an envelope with your PA-40 tax return using the

"Payment Enclosed" address provided in the mailing instructions in the

next column.

Credit/Debit Card

You can pay your PA taxes with a major credit card or a debit card. Credit

card transactions are handled by ACI Payments, Inc. and do include a

convenience/transaction fee. Please refer to their website at

www.acipayonline.com for convenience/transaction fee rates. You can

use your American Express, Discover, MasterCard or Visa credit card to

pay your taxes online or by phone. You may also use a MasterCard or

Visa debit card to make payments online. Select one of these options to

pay using your credit/debit card:

1. Internet. Access myPATH at mypath.pa.gov.

2. Telephone. Call 1-800-2PAYTAX (1-800-272-9829).

Electronic Funds Transfer

You may also pay your 2022 PA tax due using electronic funds transfer

by accessing myPATH at mypath.pa.gov. You will be prompted for your

bank account information and the payment will be deducted from your

account on the date you specify. There is no charge for using this option.

ORIGINAL AND AMENDED RETURN MAILING INSTRUCTIONS

The U.S. Postal Service returns envelopes without sufficient postage. If

your tax return is more than five pages or in an oversized envelope, you

may need additional postage. Check with your local Post Office. Please

write your complete return address in the upper left corner of the

envelope.

PAYMENT OPTIONS

26 www.revenue.pa.govPA-40

For all schedules, enter the complete name and SSN of the taxpayer

reporting the income or claiming the expenses. If filing a schedule jointly,

enter the complete name and SSN of the taxpayer listed first. Each

taxpayer must submit a separate schedule for each separately owned

business, profession or farm. You and your spouse may file these

schedules jointly:

PA Schedules A, B and J - these schedules do not show any losses

or expenses.

• You may no longer submit federal Schedule B even if you do

not have any Capital Gains Distributions and your amounts are

exactly the same for Pennsylvania.

You must use PA Schedules A and B. Spouses must submit

separate PA Schedules A and B unless all the income is joint

income.

• You cannot submit a federal Schedule K-1 in lieu of PA Schedule

PA Schedule SP – see the instructions beginning on Page 36 for

when to include this schedule.

PA Schedule O – see the instructions on Page 36 for when to

include this schedule.

If a joint return including IRC Section 529 Qualified Tuition Program

deductions for both taxpayers is filed, schedules reporting the

income on a separate basis for each taxpayer should be included, so that

the department may calculate the income limitations.

You and your spouse must file these schedules separately, each reporting

only your own income, expenses and net income (losses):

PA Schedule UE – a separate schedule for each employer or job.

PA Schedules C and F – separate schedules for each commercial

activity and each taxpayer.

PA Schedules D – must submit a separate PA Schedule D for you

and your spouse reporting income unless all the gains and losses

are joint.

PA Schedules D-1 and D-71 – separate schedules for each

taxpayer and each installment sale.

PA Schedule E – follow the instructions on the schedule.

PA Schedules G-L and T – separate schedules for each taxpayer.

PA Schedule OC – a taxpayer and spouse must file separate PA-

40 tax returns if one or both are claiming any credits on this schedule

other than the Educational Improvement, Opportunity Scholarship

or Resource Enhancement and Protection tax credits.

Reproducing PA Returns and Schedules

You may not prepare your own facsimile schedules as replacements for

PA schedules.

Multiple Schedules

If you have multiple Schedules A, B, D, E, or J due to entries beyond the

capacity of the forms, include the total income for that form on one form

only.

Allowable employee business expenses for PA purposes are similar to,

but not the same as, expenses for federal purposes. PA law only permits

expenses required to perform the duties of a job or profession.

Allowable Pennsylvania Employee Business Expenses

Must Be:

1. Ordinary, customary, and accepted in the industry or occupation in

which you work;

2. Actually paid while performing the duties of your employment;

3. Reasonable in amount and not excessive;

4. Necessary to enable you to properly perform the duties of your

employment; and

5. Directly related to performing the duties of your occupation or

employment.

IMPORTANT: You may deduct 100 percent of your PA-allowable

unreimbursed employee business expenses. PA law does not have

federal expense and percentage accounting limitations and thresholds.

CAUTION: You may not deduct expenses based upon federal per-

diem allowances. You may only deduct those expenses actually

paid while performing the duties of your employment.

You did not incur an allowable business expense during the year if you:

• Received a fixed-mileage allowance; a fixed expense reimburse-

ment amount; a daily, weekly, monthly or yearly expense allowance

reimbursement; or a per-diem allowance for the allowable business

expense and your employer did not include the allowance in your

compensation; or

• Accounted for your allowable expenses to your employer and your

employer reimbursed you in the exact amount of your expenses.

Do not include such reimbursements in gross compensation. Do not claim

such expenses on a PA Schedule UE.

EXAMPLE: James is regional manager for a chain of retail stores and is

required by his employer to drive his personal vehicle and visit each retail

location within his region at least one time per month. James’ employer

reimburses him at a rate of $0.40 per mile and provides a lunch per diem

of $8.00 per travel day. James is not permitted to deduct a mileage

expense on his PA Schedule UE for the difference between the federal

PA SCHEDULE UE (LINE 1b)

SCHEDULE INSTRUCTIONS

Follow these instructions for mailing your PA tax return:

If you owe tax–You have an amount on Line 28, mail your return to:

PA DEPT OF REVENUE

PAYMENT ENCLOSED

1 REVENUE PLACE

HARRISBURG PA 17129-0001

If you overpaid–You have an amount on Line 29, mail your return to:

PA DEPT OF REVENUE

REFUND OR CREDIT REQUESTED

3 REVENUE PLACE

HARRISBURG PA 17129-0003

If you neither owe nor overpaid–You have zeros on Lines 28 and 29, mail

your return to:

PA DEPT OF REVENUE

NO PAYMENT OR NO REFUND

2 REVENUE PLACE

HARRISBURG PA 17129-0002

IMPORTANT: Do not use these addresses to send other

correspondence to the department.

27www.revenue.pa.gov PA-40

allowance and his employer’s reimbursement or an expense for meals

while traveling to visit the retail locations within his region unless his

employer includes the reimbursements in his PA compensation.

If your employer does not reimburse you, you may reduce your

compensation by your allowable expenses. If your reimbursement is more

than your allowable expenses, you must report the excess as taxable

compensation on Line 1a.

EXAMPLE: Dave earned compensation of $30,000. He incurred

allowable vehicle and travel employee business expenses of $3,000, and

was reimbursed $3,500. He must complete a PA Schedule UE. He

includes the excess $500 as compensation. His total net taxable

compensation is $30,500.

Sole proprietors, partners, shareholders, or other self-employed

individuals should not use PA Schedule UE to claim expenses.

CAUTION: Nonresidents must use PA Schedule NRH to

apportion expenses for PA personal income tax purposes. A copy

of PA Schedule NRH may be obtained by using one of the Forms

Ordering Services listed on Page 2. Part-year residents may only claim

100 percent of unreimbursed business expenses if the expenses were

incurred only while providing services in Pennsylvania or while a PA

resident. Include a statement indicating the method used to determine

the expenses for the period of residency (PA Schedule NRH may also

be used for this purpose).

Pennsylvania Does Not Allow The Following Business

Expenses, Even If Allowed for Federal Purposes:

• Personal, living, or family expenses

• Dues to fraternal organizations, professional societies, Chambers

of Commerce, or recreational club memberships

• Dues and subscriptions to publications, including trade and

professional publications

• Political candidate or campaign contributions

• Charitable contributions

• Commuting expenses – driving to and from work

• Cost of meals while working late, unless while traveling away from

home overnight on business

• Childcare or elderly care expenses

• Life, disability income and health insurance premiums

• Contributions to deferred compensation plans or other pension plans

• Legal fees (except to recover back wages), fines, penalties and bad

debts

• Bribes, kickbacks, or other illegal payments

• Job hunting or other pursuit of employment expenses

• Malpractice insurance premiums, except when allowed in Section I

• Moving expenses, except when allowed in Section V

• Educational expenses, except as allowed in Section VI

• Capital expenditures

• Expenses calculated at federal per-diem rates.

You must file a separate PA Schedule UE for each employer and

each taxpayer. Spouses may not report joint expenses on a PA

Schedule UE, even if filing jointly. An incomplete schedule may result in

delays in the processing of your return and/or denial of the expenses.

You may wish to provide a copy of a letter from your employer verifying

that your expenses are required to be incurred to perform the duties of

your position and the method of any reimbursement by your employer for

those expenses. Form REV-757, Employer Letter Template, may be

completed by the employer for such purposes. In lieu of an employer

letter, you may also provide a copy of your employer’s employee expense

reimbursement policy. In addition, Form REV-775, Personal Income Tax

Employee Business Expense Affidavit, may be submitted if an employer

will not provide you a letter and the expense policy is not available. You

should also review the department’s Tips For Successfully Filing PA

Schedule UE (REV-489) and Unreimbursed Allowable Employee

Business Expenses For PA Personal Income Tax Purposes brochure

(REV-637) prior to completing your Schedule UE.

General Instructions

Enter the name of the taxpayer claiming the expenses and the SSN

shown first on the return. Enter all the employer information, and briefly

describe the job or position for which you incurred the expenses you are

claiming. Enter only the expenses incurred for the employer listed on this

schedule.

Keep Your Records

The department has the legal authority to require evidence that the

expenses you claim on a PA Schedule UE are allowable for PA purposes.

Keep your necessary documents, receipts, vouchers and other records

for at least four years.

PA Schedule UE - Side 1

Side 1 of this schedule is for the most common expenses claimed on PA

income tax returns.

Section I. Direct Employee Business Expenses

You pay these expenses directly or through a withholding arrangement

with your employer. These expenses are necessary to perform or maintain

your job. Itemize the nature and amount of the expenses you are claiming

in Section I.

1. Union Dues. Union dues, assessments, and initiation fees are

allowable business expenses if:

• Such payments are a condition of continued membership in the

union, and membership is related directly to your present job; or

• Such payments are a required wage deduction under an agency

shop agreement.

2. Work Clothes and Uniforms. The costs of purchasing and

maintaining uniforms and work clothing to protect you from bodily

injury are allowable business expenses if the uniforms and clothing

are both:

• Of a type specifically required by the employer to be purchased

as a condition of continued employment; and

• Not adaptable to general usage.

3. Small Tools and Supplies. Expenditures for small tools and

supplies that your employer does not provide, but you must have to

perform the duties of your job, are allowable business expenses.

Depreciation is the annual deduction you must take to recover the

cost of business property having a useful life beyond the taxable

year. If any of these tools or supplies has a useful life of more than

one year, you depreciate the cost in Section VII. See the

Depreciation – PA Limitations instructions on Page 9 for more

information.

4. Professional License Fees, Malpractice Insurance, and Fidelity

Bond Premiums. Trade, professional, or occupational licenses or

fees required as a condition of employment are allowable business

expenses. Include malpractice insurance and fidelity bond premiums

where required by law or by your employer.

28 www.revenue.pa.govPA-40

5. Total Direct Employee Business Expenses. Add Lines 1 through 4.

Section II. Business Travel Expenses

6. Vehicle Expenses: Standard Mileage Rate. Enter your total

business miles and multiply by the federal mileage allowance to

calculate your allowable business mileage expense.

CAUTION: You may not claim depreciation on any vehicle on

which you are using the standard mileage rate method.

Commuting Expenses. You cannot deduct the costs of public

transportation or driving a car between your home and your main place

of work. These are personal commuting expenses. You cannot deduct

commuting expenses no matter how far your home is from your regular

place of work. Commuting costs between different jobs for different

employers are also not allowable. For tradesmen, commuting costs also

include mileage for any job 35 miles or fewer from the closer of the union

hall or personal residence to the jobsite.

Vehicle Expenses - Actual. If you are using the actual vehicle expense

method to calculate business travel expenses, complete Lines 7a through

10.

IMPORTANT: If more than one vehicle was used for business

purposes, you must include a separate Schedule UE with Lines

7a thru 10 completed for each vehicle driven. In place of separate

Schedules UE, a statement may be included that shows your amounts

for each vehicle for Lines 7a through 10. Add the Line 10 total expense

amount from each vehicle and include the result in the amount for Line 15.

7a. Enter your total vehicle miles driven in 2022 including any miles

driven for a vehicle that was rented during the time your regular

vehicle was being repaired.

7b. Enter your total business miles driven in 2022 including any business

miles driven for a vehicle that was rented during the time your regular

vehicle was being repaired.

7c. Divide Line 7b by Line 7a and enter the result rounded to six decimal

places.

8a. Enter the amount of your total expenses for gasoline, oil, repairs,

insurance, tires, license plates, vehicle registration, car washes and

other similar items. If the vehicle driven for business purposes was

rented or leased, enter the cost of renting. Also enter the cost of

temporary rentals for vehicles you rented during the time your regular

vehicle was being repaired. Do not enter temporary vehicle rentals

included in Line 11.

8b. Depreciation. You may use any generally accepted depreciation

method except any of the bonus depreciation elections enacted for

federal purposes. See DIFFERENCES BETWEEN PA PIT AND IRS

on Page 9. If using a different method for PA purposes, enter the

method you used and the adjusted expense here.

9. Add the amounts on Lines 8a and 8b.

10. Allowable Actual Vehicle Expenses. Multiply Line 9 by the ratio on

Line 7c.

Other Business Travel Expenses

Enter the actual amount of these expenses that you incurred.

11. Parking fees, tolls, and transportation. Enter the amount of

parking fees, tolls and transportation expenses incurred while in an

overnight or business travel status.

12. Travel expenses while away from home overnight. Enter the

amount of hotel or motel accommodation expenses incurred while

in an overnight travel status.

13. Meals. Enter only the actual expenses incurred for meals.

14. Entertainment expenses. Enter only the actual expenses incurred

for entertainment expenses.

IMPORTANT: Meals and entertainment expenses are 100 percent

allowable. However, meals while not in overnight traveling status

(e.g. meals while working late) and federal per-diem rates for meals and

incidental expenses are not allowable. See the PA Personal Income Tax

Guide – Gross Compensation section for additional information.

15. Total Business Travel Expenses. Add Lines 6 or 10, and Lines 11,

12, 13 and 14.

Section III. Miscellaneous Expenses

Include the PA-allowable expenses that you incurred in the space

provided. If you have more than two miscellaneous expenses, you must

include a separate statement that itemizes and describes in detail these

expenses. Additional examples of expenses that you may claim include:

• Breakage fees or cash shortages you must pay to your employer;

• Fees or income included in your PA-taxable compensation on your

Form W-2 that you are required to pay to your employer as a

condition of employment;

• Costs incurred by blind employees to pay readers who assist them

in performing their job duties;

• Business gifts must be ordinary, necessary, reasonable, and actually

incurred for business purposes. Pennsylvania does not follow federal

percentage limits on such expenses.

CAUTION: You may be a statutory employee for federal purposes.

However, PA law does not have a similar provision. As a statutory

employee, you may have to claim your income as compensation and your

expenses on PA Schedule UE. For more information on statutory

employees see the PA Personal Income Tax Guide – Gross

Compensation section found on the department’s website. As an

employee, you must claim your expenses on PA Schedule UE. If you are

self-employed, you must report your business activity on Line 4 of your

PA-40 and enclose the necessary PA Schedule C.

16. Total Miscellaneous Expenses. Enter the total of the

miscellaneous expenses you listed.

If you do not have expenses for your office or work area (Section

IV), moving (Section V), education (Section VI), or depreciation

(Section VII), complete Side 1, and include your allowable unreimbursed

employee business expenses on Line 1b of your PA-40.

Total Allowable PA Employee Business Expenses

Lines A through G. Enter the amounts of your allowable expenses from

each section of PA Schedule UE that you completed.

Line H. Total Expenses. Add the expenses you are claiming from

each section of PA Schedule UE.

CAUTION: If you are a nonresident or part-year resident who

earned income and incurred expenses within and outside

Pennsylvania, you must complete PA Schedule NRH.

Line I. Reimbursements. If your employer included your

reimbursement in PA-taxable compensation on your Form

W-2, do not enter that reimbursement here. If the

reimbursements from your employer were in excess of

federal mileage or per-diem limits and not included in

compensation or were in excess of your actual expenses

29www.revenue.pa.gov PA-40

and not included in compensation, enter the total amount of

reimbursements here. Otherwise, if you received a

reimbursement from your employer for any type of expense

included on PA Schedule UE, even though the amount was

less than the total amount of the expense you incurred, do

not include the reimbursements for those expenses and do

not include the expense on your PA Schedule UE. You do

not have an unreimbursed expense.

Line J. Net Expense or Reimbursement.

• If Line H is more than Line I, include your unreimbursed

expenses on Line 1b of your PA-40.

• If Line I is more than Line H, include your excess

reimbursements on Line 1a of your PA-40.

PA Schedule UE - Side 2

CAUTION: Certain utilities, which are not subject to sales and use

tax when purchased exclusively for residential use, become

subject to sales and use tax when used for commercial purposes. If you

are including electricity, natural gas, fuel oil, or kerosene in your

calculation of home office expense, you should report use tax due on the

prorated expense amount. The use tax on these utilities should be paid

via the online Use Tax Return, or if you are required to file a sales tax

return, as part of that return. Please visit the myPATH website at

mypath.pa.gov to file the Use Tax Return or to register for a use tax

account if you have regular recurring use tax liability on utilities.

Section IV. Office or Work Area Expenses

You may claim these expenses when your employer does not provide

you with a suitable work area and you can answer YES to each of these

questions:

D1. Does your employer require you, as a condition of employment, to

maintain a suitable work area away from the employer's premises?

D2. Is this work area the principal place where you perform the duties of

your employment?

D3. Do you use this work area regularly to perform the duties of your

employment?

If your employer provides a suitable work area, or you answer one or

more of the above questions NO, you cannot claim any office or work

area expenses.

CAUTION: The department does not permit the use of the federal

safe harbor deduction for a home office or work area. Actual

expenses must be used to determine the amount of the deduction.

Actual Office or Work Area Expenses.

Lines a to h. Enter the actual expenses you incurred if you are

claiming office or work area expenses on this schedule.

Include statements detailing property maintenance and

other apportionable expenses from Lines f and g.

Line i. Add Lines a through h.

Line j. Calculate the percentage of your property that you use

for business.

Line k. Apportioned Expenses. Multiply Line i by Line j.

Line l. Total Office Supplies. Enter the actual cost of supplies

that you use exclusively for business purposes.

17. Total Office or Work Area Expenses. Add Lines k and l.

Section V. Moving Expenses

You may deduct moving expenses incurred to retain employment. You

may also deduct moving expenses to report to a new location after

obtaining employment. However, you must meet the Distance Test

described at the top of the next column.

You may deduct allowable expenses you incur in moving yourself, your

immediate family, your household goods, and your personal belongings,

including the cost of transportation to your new home, using your actual

out-of-pocket costs or the federal mileage allowance. You may deduct

expenses for storing household goods, for meals and lodging on the way,

including such costs on the day you arrive, and parking fees and tolls.

You may not deduct expenses for:

• selling or purchasing a house;

• breaking a lease; house hunting;

• securing lodging prior to moving;

• seeking new employment;

• moving for your own convenience;

• relocating to a new job or workplace less than 35 miles farther than

your old commute to work; or

• moving anywhere other than within or into Pennsylvania.

Distance Test. Your new workplace must be at least 35 miles farther from

your old residence than your old workplace was. EXAMPLE: If your old

workplace was three miles from your old residence, your new workplace

must be at least 38 miles from your old residence. Measure the distance

using the shortest of the most commonly traveled routes. To determine if

you meet this test, complete Lines E1, E2, and E3.

IMPORTANT: If you are in the military, you do not have to meet

the distance test if your move is a permanent change of duty

station. If you, your spouse and dependents are moving to the new duty

station from different locations, you may claim all the allowable expenses.

18. Enter your actual allowable transportation expenses as previously

described.

19. Enter your actual qualifying expenses for travel, meals, and lodging,

as previously described.

20. Total Moving Expenses. Add Lines 18 and 19.

Section VI. Education Expenses

The federal and PA rules for educational expenses are similar, but not

exactly the same. For PA purposes, costs for education expenses that

you pay or incur are allowable only if:

• The education is specifically required by law or by your employer to

retain an established employment status or rate of compensation;

and

• The education is not part of a program that would qualify you for a

new occupation, trade, or business, even if you do not intend to enter

that new occupation, trade, or business.

Unlike federal rules, you may not deduct education expenses that you

incur to maintain or improve your skills.

EXAMPLE: Anthony is a licensed professional in a position that, by law,

requires a specific number of continuing education credits every other

year. If Anthony fails to obtain these credits, he will lose his license.

Anthony also takes courses in using a computer to improve his job

performance. Anthony may claim the cost of his continuing education

courses. He may not claim the computer courses.

30 www.revenue.pa.govPA-40

You must answer question F1. If you answer YES, continue. If you answer

NO, you may not claim any education expenses. You must answer

questions F2 and F3. If you answer NO to both questions, continue. If

you answer YES to either question, you may not claim any education

expenses.

Enter the name of the college, university, or educational institution you

attend, and your specific course of study. Your education must meet the

requirements described above.

21. Enter the amount of tuition or fees you actually paid.

22. Enter the costs of your books and other materials required for your

courses.

23. Enter the cost of travel. Pennsylvania follows the federal rules for

travel expenses for education.

CAUTION: You may not deduct costs of travel as educational

expenses by claiming that the travel itself constitutes a form of

education.

24. Total Education Expenses. Add Lines 21, 22, and 23.

Section VII. Depreciation Expenses

Depreciation is the amount you can claim over the useful life of property

you use in performing the duties of your employment. A depreciation

expense is allowable if the property:

• Has a useful life exceeding one year; and

• Is required to be regularly and predominantly used to perform the

duties of employment; and

• Is required and not provided or supplied by your employer.

PA law allows generally accepted depreciation methods and current

expensing. PA law does not allow federal bonus depreciation. PA law

limits IRC Section 179 expensing. See DIFFERENCES BETWEEN PA

PIT AND IRS on Page 9. The department accepts most generally

accepted methods of calculating depreciation used for federal purposes.

Once you have elected a depreciation method, you must consistently use

it and may not change it without permission from the PA Department of

Revenue. For each asset, enter the depreciation method elected and the

expense.

Do not use Section VII to report all depreciation. Use Section II for

vehicles, and Part D for office or work area depreciation. Fair

market value of property is not an acceptable other basis.

25. Total Depreciation Expenses. Enter the total of columns E and F.

If your total PA-taxable interest income (taxpayer, spouse and/or joint) is

equal to the amount reported on your federal return and you have no

amounts for Lines 2 through 15 (not including subtotal Lines 4 and 10) of

PA Schedule A, you must report your income on Line 2 of the PA-40, but

you do not have to submit PA Schedule A. If there are any amounts

(taxpayer, spouse and/or joint) for any of the Lines 2 through 15 (not

including subtotal Lines 4 and 10) of PA Schedule A, you must complete

and submit PA Schedule A with your PA-40. A taxpayer and spouse must

complete and submit separate schedules to report their income if either

have any amounts reported on Lines 2 through 15 (not including subtotal

Lines 4 and 10). However, if all the income is earned on a joint basis, one

schedule may be completed. Complete the oval to indicate whether the

income included on the schedule is from the taxpayer, spouse or joint.

When reporting the interest income on a separate PA Schedule A, a

taxpayer and spouse must show their separate share of the interest

income from jointly owned accounts on each PA Schedule A.

PA-taxable income includes interest from:

• Savings and loan associations;

• Credit unions, even if reported as dividends on your statement;

• Bank deposits;

• Bonds (except as exempted later on this page);

• Certificates of deposit;

• Interest-bearing personal checking accounts;

• State, federal, local and foreign tax refunds;

• Other deposits, investments, and obligations;

• GNMA and FNMA certificates and other obligations that are

guaranteed by the U.S. government, but not direct obligations of the

U.S. government;

• Obligations of other states or countries; and

• Mutual savings banks and cooperative banks, even if reported as

dividends.

IMPORTANT: Also report on PA Schedule A:

• Income on life insurance contracts, annuities, or endowments if

reported for federal income tax purposes;

• Income from charitable gift annuities included in federal gross

taxable income as ordinary or capital gain income;

• Any amount paid out of an Archer Medical Savings Account or Health

Savings Account that is includable in the gross income of an account

beneficiary for federal income tax purposes. Included in this category

are distributions used for any purpose other than to pay qualified

medical expenses, any amount considered to be excess contribution

distributions not previously included in income, or any amount of the

account’s income attributable to excess contributions; and

• Taxable amounts distributed from IRC Section 529 Qualified Tuition

Programs for non-educational purposes. Please check our website

at www.revenue.pa.gov for more information on how to determine

the taxable portion of any distributions for non-educational purposes.

PA-taxable income does not include interest from:

• Direct obligations of the U.S. government (U.S. Treasury Bonds,

Notes, Bills, Certificates, and Savings Bonds);

• Direct obligations of the Commonwealth of Pennsylvania;

• Direct obligations of political subdivisions of Pennsylvania;

• Pennsylvania 529 College Savings accounts when earned or used

to pay for Qualified Higher Education Expenses as defined in IRC

Section 529 (e)(3)(A); or

• Pennsylvania ABLE Savings Program accounts when earned or

used to pay for qualified disability expenses as defined in IRC

Section 529A.

For a list of exempt obligations, request Tax Exempt Obligations for

Pennsylvania Personal Income Tax Purposes (Form REV-1643).

NOTE: You must include PA tax-exempt interest in Eligibility

Income for Tax Forgiveness purposes.

Form Instructions

Complete each line as necessary:

1. Enter the amount of interest income you reported on Line 2b of your

federal Form 1040.

2. Enter the total amount of tax-exempt interest income included in Line

2a of your federal Form 1040, or Form 1040A.

PA SCHEDULE A (LINE 2)

31www.revenue.pa.gov PA-40

CAUTION: Do not include exempt-interest dividends in this

amount.

3. Enter any other adjustments for items that increase PA-taxable

interest income and provide a description of the amounts. Examples

of additions to or deductions from federal interest income that must

be added back include, but are not limited to: taxable distributions

from PA ABLE Savings Program Fund accounts; self-charged

interest; amortization of bond premium; nominee interest; or

expenses incurred to realize interest income.

IMPORTANT: If you are not required to file a federal return,

enter on this line the amount of any interest income reported

to you in Box 1 of all federal Forms 1099-INT, Interest Income, as

well as all other federally taxable interest income received, including,

but not limited to, U.S. government interest or interest from federal

Schedule K-1s.

5. Enter the total amount of interest income included in the amounts

reported in Line 1 of federal Schedule B from federal Schedule(s) K-1.

6. Enter the amount of your tax-exempt interest from direct obligations

of the Commonwealth of Pennsylvania and/or direct obligations of

political subdivisions of Pennsylvania. Include on this line any

interest income from obligations issued by the commonwealth, a

public authority, commission, board or other agency created by the

commonwealth or political subdivision of the commonwealth.

7. Enter the amount of any interest income from direct obligations of

the U.S. Government (U.S. Treasury Bonds, Notes, Bills, Certificates

and Savings Bonds). Do not include amounts from US obligations

reported on federal Schedule K-1(s) or on Line 3 of federal Schedule

B in this amount.

8. Enter any other adjustments that decrease PA interest income and

provide a description of the amounts. Examples include but are not

limited to: interest income earned while a nonresident; interest on

installment obligations that are included as gain on the sale of

property for PA purposes; forfeited interest penalty; interest income

from an irrevocable federal grantor trust that is required to file a PA-

41 Fiduciary Income Tax Return; and amortization of bond premium.

An example of the description for interest income earned while a

nonresident would be “Non-Residency Period Interest”. Do not

include expenses incurred to realize interest income. Include a

statement providing the descriptions and amounts if more than one

type of adjustment is included in the amount reported for this line.

11. Enter amounts reported on Form 1099-R with Box 7 Codes 1, 2, 3,

4 or 7 that also include Code D.

12. Enter the amount of charitable gift annuity income taxable for federal

income tax purposes.

13. Enter the amount of any distributions from IRC Section 529 plans

that are for non-educational purposes. The cost recovery method

must be used to determine the taxable amount for contributions

made in tax years 2005 and earlier. The total amount of distributions

claimed as deductions for tax years 2006 and later is taxable.

14. Enter the amount of any distributions from Health/Medical Savings

accounts included as Other income on Line 8 of your federal Form

1040, Schedule 1.

15. Enter the amount of interest income from PA S corporations and

partnerships. Include the amounts reported from all PA Schedule(s)

RK-1, or federal Schedule(s) K-1 if an RK-1 is not provided. Include

any U.S. government interest from federal Schedule(s) K-1, where

PA Schedule(s) RK-1 is/are not provided, on Line 8 of PA Schedule

NOTE: If a separate PA Schedule A is prepared for a taxpayer and

spouse, include only the taxpayer or spouse share of the income

for each line.

If your total PA-taxable dividend and capital gains distributions income

(taxpayer, spouse and/or joint) does not include any amounts for Lines 2

through 10 (not including subtotal Line 6) of PA Schedule B, you must

report your income on Line 3 of the PA-40, but you do not have to submit

PA Schedule B. If there are any amounts (taxpayer, spouse and/or joint)

for any of the Lines 2 through 10 (not including subtotal Line 6) of PA

Schedule B, you must complete and submit PA Schedule B with your PA-

40. A taxpayer and spouse must complete and submit separate schedules

to report their income if either have any amounts reported on Lines 2

through 10 (not including subtotal Line 6). However, if all the income is

earned on a joint basis, one schedule may be completed. Complete the

oval to indicate whether the income included on the schedule is from the

taxpayer, spouse or joint. When reporting the dividend income on a

separate PA Schedule B, a taxpayer and spouse must show their

separate share of dividend income from any jointly owned stock on each

PA Schedule B.

Capital Gains Distributions

Capital gains distributions are taxable as dividend income on Line 3. Do

not report capital gains distributions on PA Schedule D.

Stock Dividend Reinvestment Plans

Under a stock dividend reinvestment plan, you elect dividends in the form

of stock, rather than cash or other property. You must include the stock's

fair market value as dividend income as of the date paid.

PA-taxable dividend income does not include:

• Dividends distributed by a corporation to its stockholders as stock,

if the distribution is not personal income for federal purposes.

• Distributions designated as return of capital by utility companies and

other corporations that reduce the basis of your stock in the

corporation.

NOTE: Once such distributions reduce your basis to zero,

further distributions are Taxable Distributions from C

corporations on PA Schedule D. See Page 33.

• Dividends from deposits or withdrawals from accounts paid by

savings and loan associations, mutual savings banks, cooperative

banks, and credit unions. Report these payments as PA-taxable

interest income on Line 2 of your PA-40.

• Ordinary dividends paid by a mutual fund or a registered investment

company that the fund/company statement designates as being

exempt-interest dividends. Use the percentage of the total dividend

income that is from exempt PA and exempt federal obligations to

determine the tax-exempt portion of the dividend income.

• Dividends from PA tax-exempt obligations. Request Tax Exempt

Obligations for Pennsylvania Personal Income Tax Purposes (Form

REV-1643) for a list of exempt obligations.

• Dividends distributed under a charitable gift annuity are not taxable

dividend income for PA personal income tax purposes. However, dis-

tributions are taxable to the extent they are taxable for federal

income taxes purposes as interest income on PA Schedule A, Line

PA SCHEDULE B (LINE 3)

32 www.revenue.pa.govPA-40

NOTE: You must include PA tax-exempt dividend income in

Eligibility Income for Tax Forgiveness purposes.

Form Instructions

Complete each line as necessary:

1. Enter the amount of dividend income you reported on Line 3b of your

federal Form 1040.

2. Enter the total amount of dividend income included on Line 5 of

federal Schedule B from federal Schedule(s) K-1.

3. Enter the total amount of any tax-exempt dividends from direct

obligations of the Commonwealth of Pennsylvania, direct obligations

of political subdivisions of Pennsylvania and/or direct obligations of

the U.S. Government (U.S. Treasury Bonds, Notes, Bills, Certificates

and Savings Bonds) included in any tax-exempt fund or money

market fund dividends.

4. Enter any other adjustments that decrease PA dividend income and

provide a description of the amounts. Examples include, but are not

limited to: dividend income for a part-year resident taxpayer during

the period the taxpayer was a nonresident; nominee capital gains

distributions; and dividend income from an irrevocable federal

grantor trust that is required to file a PA-41 Fiduciary Income Tax

Return. Do not include expenses incurred to realize dividend income.

7. Enter the total amount of any exempt-interest dividends reported in

Box 11 of federal Form 1099-DIV, Dividends and Distributions, or

the amount of exempt-interest dividends included in Line 2a of your

federal return.

8. Enter any other adjustments that increase PA dividend income and

provide a description of the amounts. Examples include, but are not

limited to: excessive salary paid to a shareholder; nominee capital

gains distributions; distributions from non-PA S corporations; and

expenses incurred to realize dividend income.

IMPORTANT: If you are not required to file a federal return,

enter on this line the amount of dividend income reported to

you in Box 1 of all federal Forms 1099-DIV, Dividends and

Distributions, as well as any other federally taxable dividend income

received by you from all sources including, but not limited to,

dividends from federal Schedule K-1s.

9a. Enter the amount of deemed dividend foreign earnings and profits

reported on Line 1 of the IRC Section 965 Transition Tax Statement

for calendar or fiscal year tax returns for 2017.

9b. Enter the amount of cash payments of foreign earnings and profits

received in prior tax years attributable to the amount reported on

Line 9a that were previously reported as dividend income for

Pennsylvania personal income tax purposes.

IMPORTANT: If no amount of repatriated foreign earnings

were reported on the 2017, 2018, 2019, 2020 and/or 2021

PA-40 Schedule B as additional dividend income, enter a zero on

Line 9b. However, if cash payments were received during 2017,

2018, 2019, 2020 and/or 2021 attributable to the amount reported

on Line 9a and no income was reported for foreign repatriated

income, the 2017, 2018, 2019, 2020 and/or 2021 PA-40, should be

amended to include the amount received in 2017 on Line 8 of the

2017 PA-40 Schedule B or the amount received in 2018, 2019, 2020

and/or 2021 on Line 9c on the respective 2018, 2019, 2020 and/or

2021 PA-40 Schedule(s) B. The total amount included on the

amended return(s), should then be included on Line 9b.

9c. Enter the amount of cash received during the current tax year that is

attributable to the repatriation of foreign income included on Line 9a.

CAUTION: Federal Form 1099-DIV, Dividend Income, may

not be prepared and sent by the payer for these payments.

Even if the 1099-DIV is not prepared, the cash payments received

must be reported as dividend income for Pennsylvania personal

income tax purposes.

10. Enter the amount of capital gains distributions included as capital

gains on federal Schedule D. If federal Schedule D is not required,

enter the amount of capital gains distributions reported directly on

Schedule 1 of the federal return.

11. Enter the amount of dividend income from PA S corporations and

partnerships. Include the amounts reported from all PA Schedule(s)

RK-1, or federal Schedule(s) K-1 if an RK-1 is not provided.

NOTE: If a separate PA Schedule B is prepared for a taxpayer and

spouse, include only the taxpayer or spouse share of the income

for each line.

Do not submit a federal Schedule D. A taxpayer and spouse must

complete separate schedules to report their gains or losses or if any

amounts are reported on Lines 3 through 10. However, if all the gains

and losses were realized on a joint basis, one schedule may be

completed. Complete the oval to indicate whether the gains and losses

included on the schedule are from the taxpayer, spouse or joint.

IMPORTANT: One spouse may not use a loss to reduce the other

spouse’s gains. In the case where separate Schedule Ds are

required and spouses must also report the sale of jointly owned property,

each spouse must show his/her share of the sale on their separate PA

Schedule D.

Report all sales, exchanges, and dispositions of property using PA income

tax rules, and your PA income tax basis, in the year in which the

transaction occurred. If a federal election allows a deferral to a different

tax year or a deemed sale, you may not use that election for PA purposes.

Summaries or groups of transactions as reported on brokerage

statements or summaries of the sales of stocks, bonds and other financial

instruments sold on the major financial exchanges on separately prepared

statements may be used in lieu of entering each sale, exchange or

disposition of property on PA Schedule D. All other transactions must be

entered separately on PA Schedule D.

If a brokerage or summary statement is used, a copy of the statement

must be provided with the return. Electronically filed returns will no longer

permit entry of an unlimited number of transactions. Brokerage or

summary statements of transactions will be required to be included as a

PDF attachment with the return or faxed to the department unless copies

of the brokerage statements are already included with the federal e-filed

return.

Unless the specific instructions require a different Pennsylvania schedule

or as previously noted, report each sale, exchange, or disposition of

property on PA Schedule D.

1. Columns (a) through (f)

(a) List and describe the property sold or otherwise disposed of for

cash or for other property.

(b) Enter the month, day, and year acquired. If you acquired

properties over time or if you are entering a summary line for

multiple transactions, you may enter VARIOUS.

summary line for multiple transactions, you may enter

VARIOUS.

PA SCHEDULE D (LINE 5)

33www.revenue.pa.gov PA-40

(d) Enter the gross sales price or fair market value of cash and

property received less the applicable expenses of sale.

(e) Enter the cost or adjusted basis of the property sold.

(f) Determine whether your property was either I or II, and follow

the appropriate instructions:

I. If your property was income-producing property, such as

stock, bonds, an ownership interest in a business, a rental

property, a patent or copyright, or you held your property in

connection with a business, profession, or occupation (but

not inventory or an operational asset), then:

• Subtract Column (e) from Column (d). Enter either the gain

or the loss or zero in Column (f).

II. If your property was other than income-producing property

(a personal automobile or furniture), then:

• If the adjusted basis is less than or equal to Column (d),

enter the gain or zero in Column (f).

• If the adjusted basis is greater than Column (d), enter zero

in Column (f). You cannot report a loss on the sale of

personal property.

IMPORTANT: You may only deduct losses from

transactions you entered into for profit. Indicate a

loss by filling in the oval.

CAUTION: For taxpayers reporting the sales of exempt

obligations:

DO: Include the issue or DTD date of the exempt obligation in the

description of the items sold.

DO NOT: Include the sales of any PA tax-exempt obligations issued prior

to Feb. 1, 1994. See Page 18 of the instructions for additional information

regarding exempt obligations.

Oil and Gas Pipeline or Well Access Easements and Right of Ways

Payments received for permanent right of ways and easements as well

as express easements (15 years or longer in length) are considered a

sale of a portion of the landowner’s property. The percentage of square

footage of the land included in the permanent easement or right of way

to the total square footage of the entire property (pro-rata method)

multiplied by the total adjusted basis of the land (or any other reasonable

method for determining basis of the property) should be used in

determining the gain or loss on the property. If any method other than the

pro-rata method is used, approval for use of the alternative method must

be obtained from the Department of Revenue’s Office of Chief Counsel

prior to filing the return.

2. Net Gain (Loss). Total Column (f) and enter the net amount. You

may offset gains (losses) for Line 2.

3. Gain from Installment Sales. Enter your taxable gain from each

PA Schedule D-1, Form REV-1689, Computation of Installment Sale

Income.

CAUTION: You may not elect the installment sales method

for:

• Reporting gains from the sale of intangible personal property,

such as stocks, bonds, partnership or other ownership interests;

• Reporting transactions where the object is the lending of money

or the rendering of services.

4. Taxable Distributions from C Corporations. As a shareholder in

a C corporation, you must report as taxable gain the excess of the

fair market value of a distribution (other than a dividend) in excess

of current or accumulated earnings and profits over your adjusted

basis of your stock. You must decrease the basis of your stock or

shares, but not below zero, by any distribution that is not taxable as

a dividend on Line 3 of your PA-40. EXAMPLE: B Corp distributes

from its capital account $100,000 to Karen, the only stockholder. Her

adjusted basis in her stock is $75,000. The distribution is not from

the C corporation’s earnings and profits, so it is not a taxable

dividend. Karen must reduce her basis from $75,000 to zero. She

reports $100,000 on the Enter total distribution line, and $75,000 on

the Minus adjusted basis line. She reports the remaining $25,000

as a gain on Line 4 of her PA Schedule D.

5. Net Gain (Loss) from the Sale of Property acquired before June

1, 1971. Determine your gain (loss) on the sale of June 1, 1971

property on Form REV-1742, PA Schedule D-71.

6. Net Partnership and PA S Corporation Gain (Loss). Report the

taxable gain or loss from your PA Schedules RK-1 or NRK-1. If PA

Schedules RK-1 or NRK-1 are not provided, enter the amount from

the federal Schedule K-1. Include a statement providing the entity

name and FEIN along with the gain (loss) by entity if gain (loss) from

any pass-through entity is reported on this line.

7. Taxable Gain from the Sale of Your Principal Residence. PA law

excludes the qualifying gain from the sale of your principal residence.

Generally, if you owned and used property as your principal residence

for at least two of the five years preceding the sale, your gain is

exempt. However, you must report a gain if you do not meet the

requirements. For more information request the Sale of Your Principal

Residence brochure (REV-625). If you do not qualify to exclude the

gain from the sale of your principal residence, report your taxable gain,

if any, on this line. If you realized a loss from the sale of your principal

residence, enter a zero. If you used any portion of your principal

residence for business or rental purposes, you must complete and

submit PA Schedule 19 with your return. Report the gain or loss on

the business or rental portion of the sale of your principal residence

on Line 1 of PA Schedule D.

8. Taxable Distributions from Partnerships. Report any gain you

realize from other partnership distributions that exceed your ownership

basis in the partnership. You must obtain, complete and submit REV-

999, Partner PA Outside Tax Basis in a Partnership Worksheet.

9. Taxable Distributions from PA S Corporations. Report any gain

you realize from other PA S corporation distributions that exceed your

ownership basis in the PA S corporation. You must obtain, complete

and submit REV-998, Shareholder Tax Basis in PA S Corporation

Stock Worksheet.

10. Taxable Gain from Exchange of Insurance Contracts. If you have

a sale, exchange, or disposition of an insurance contract that does not

qualify as tax-exempt under IRC Section 1035, report the taxable

exchange of any insurance contracts you reported for federal income

tax purposes. If you have more than one taxable exchange of

contracts, report the total gain you realized. See the instructions on

Page 18 for a description of the tax-exempt exchanges covered under

IRC Section 1035.

11. Total PA-Taxable Gain (Loss). Add Lines 2 through 10.

Unless otherwise noted, PA rules generally do not follow the federal rules

for determining the net income (loss) realized from the rental of property.

IMPORTANT: If you were in the real estate sales business, do not

use PA Schedule E. You must report net income (loss) from rentals

PA SCHEDULE E (LINE 6)

34 www.revenue.pa.govPA-40

of real estate held for sale to customers in the ordinary course of your

real estate sales, and/or from your business of renting other personal

property on PA Schedule C. See Reporting Rental Income (Loss) as

Business Activity on Line 4 or as Rents on Line 6 on Page 17 for additional

information.

Sales Tax License Number

Property owners who rent their property for rental periods of less than 30

days are required to obtain a sales tax license number in order to collect

and remit the hotel occupancy tax. If the taxpayer collects and remits

hotel occupancy tax on short-term rentals of less than 30 days, enter the

Pennsylvania Sales Tax License Number used to collect and remit the

tax. If a home-sharing website or third party broker, such as a local real

estate management company, collects and remits the hotel occupancy

tax, complete the “Yes” oval as the answer to the Third Party Broker

question and include the third party broker’s sales tax license number.

Third Party Brokers

If payment of the rent or lease payment is not made directly to the owner

of a property but is made by the lessee to a home sharing website or third

party broker, such as a local real estate management company, complete

the “Yes” oval.

Section I. Property Description.

Type. Enter the property type code from the list of codes provided on

Schedule E. Enter one code only. Additional information regarding the

codes for each type of property is as follows:

• Code 1, single-family residence. Enter when the rental period on a

single-family residence is 30 days or more.

• Code 2, multi-family residence. Enter when the rental period on a

property containing multiple living units is 30 days or more.

• Code 3, vacation/short-term rental. Enter when the rental period on

a single or multi-family residence or commercial property is less than

30 days. If the property is located in Pennsylvania, you must also

collect and remit hotel occupancy tax on the fair market value of the

rental. See Line c instructions for additional information.

• Code 4, commercial. Enter when the rental period on real estate

rented to businesses or organizations is for 30 days or more.

• Code 5, land. Enter when the property being rented is land.

• Code 6, royalties. Enter when reporting income resulting from royalty

payments, bonus payments, and damage rents from oil and gas and

other mineral extractions or from other royalty payments received

from other types of property.

• Code 7, self-rental. Enter when renting property other than real

estate rented to a trade or business in which there is material

participation by the owner.

• Code 8, other. Enter when the property is not one of the other types

listed above. Enter a brief description of the property in the space

provided on the form or include a statement with the return

describing the property.

Description of Property and Complete Address. Enter a brief

description that provides additional detail to the type of property rented.

Include the property or building name, property or building number or any

other description that distinguishes the property from similar property. For

rental real estate, enter the street address, city or town, state, and ZIP

code. Indicate whether the property is for-profit property or not. PA law

generally follows the IRC Section 280A when you rent or lease property,

such as a vacation home, and do not intend to realize a profit. You may

only deduct your rental expenses up to your rental income, and you may

not use a loss to reduce other rental income. If you rent or lease your

property to realize a profit, but do not operate the rental property as a

business activity, you may offset losses against other rental or royalty

income. For oil and gas royalties, enter the name of the oil and gas

producer paying the royalties for each 1099-MISC received. For all other

patent, copyright, or similar property or any other tangible personal rental

property, enter the type of property and source of the income.

IMPORTANT: If the property is located in another state or country,

you must include the complete address of the property in the

address field.

Section II. Income and Expenses

Line a. Indicate the ownership of the property: (T) = Primary taxpayer

shown first on the PA-40; (S) = Spouse; or (J) = Joint

ownership.

Line b. Fill in the “Yes” oval if the property is located within

Pennsylvania. Otherwise, fill in the “no” oval.

Line c. Rental properties with property type 3 typically have rental

periods less than 30 days and require additional

considerations regarding the class of income in which they

should be reported. If the rental of the property includes

additional services being provided to the renters such as

those provided with a bed and breakfast, the rental contract

is procured through an online short-term rental site or the

vacation property rental period by a renter is less than 30

days, complete the “yes” oval and report the net income or

loss for such properties on Line 21 and include the amount

on Line 4 of the PA-40.

Rental properties with property types 1, 2, 4, 5, 7 and 8, or a

vacation property with a rental period by the same renter for

30 days or more, are classified as rents. Complete the “No”

oval and report the net income or loss for such properties on

Line 22.

CAUTION: If any property has rental periods of less

than 30 days and the same property has rental periods

of 30 days or more, enter the property as two separate

properties on Schedule E and provide the income and

expenses for each rental period length.

Income

1. Rent received. Enter the gross rent from the rental of real estate or

other tangible personal property (including personal property leased

with real estate) you held for investment or speculation. Include

income received for renting a room or other space. If you received

services or property as rent, report the fair market value of such

services or property as rental income.

2. Royalties received. Enter the gross royalties from oil, gas, mineral

properties, and other property. Oil and gas royalty payments

received from mineral rights located under a farm are not considered

farm income and should be reported on PA Schedule E.

CAUTIONS: Property damage reimbursement resulting from the

construction of temporary structures such as staging areas is

taxable as rental income on Schedule E. Most contracts require the lessor

to mitigate damage and restore the property to its original condition, thus

no “damage” actually occurs. Payments received for the granting of a

permanent right of way or an express easement of 15 years or more

should be reported on Schedule D as a gain of the sale or disposition of

property. Otherwise, payments received for temporary access to another

property for a temporary easement or right of way are included as rental

income. Report the amount of royalty income from oil and gas leases

separately from any rental income for the same property. When reporting

35www.revenue.pa.gov PA-40

royalty income, use the gross amount reported to you on federal Form

1099-MISC.

Expenses

Enter your rental and royalty expenses for each property. You can deduct

all ordinary and necessary expenses. Do not deduct the value of your

own labor or amounts paid for capital investments or capital

improvements other than through depreciation.

Oil and Gas Royalty Expenses

Royalty income is derived from subsurface mineral or oil and gas rights.

As a result, the expenses that relate to surface rights, such as real estate

taxes and insurance are not allowable against royalty income. Mortgage

interest is only allowable if the interest relates directly to the financing of

the separately enumerated mineral or oil and gas rights. Expenses that

relate directly to the production of royalty income, such as production

costs payments and costs related to the negotiation or verification of the

lease, are allowable. Direct reductions to payments from the lessor, such

as production costs, transmission costs or gathering fees, are allowable

and should be itemized under Line 17, Other Expenses.

Expenses incurred by a landowner to restore a property damaged by

staging areas, rights of way or structures are allowable expenses.

However, expenses incurred by a landowner to improve the property or

increase its value are not allowable.

CAUTION: Depletion, specifically percentage depletion, is not an

allowable expense for PA personal income tax purposes. Although

cost depletion may be allowable, it requires that the landowner has clearly

identifiable costs incurred with the acquisition of the mineral or oil and

gas rights. These specific costs are not included within the general

acquisition costs of the surface and must be separately enumerated in a

purchase agreement in order to clearly identify the depletable amount of

oil and gas rights from the property.

IMPORTANT: Renting Part of Your Home. If you rent out only

part of your home or other property, deduct only those expenses

(or percentages of expenses) that apply to the rented part.

3. Advertising

4. Automobile and travel. Deduct ordinary and necessary auto and

travel expenses related to your rental activities, including 100 percent

of meal expenses incurred while traveling away from home.

Pennsylvania differs from federal treatment on the meals and

entertainment expense. You generally can either deduct your actual

expenses or take the standard federal mileage rate.

5. Cleaning and maintenance

6. Commissions

7. Insurance

8. Legal and professional fees

9. Management fees

10. Mortgage interest. If you have a mortgage on your rental property,

enter the amount of interest you paid for the current year to banks

or other financial institutions.

11. Other interest. Generally, to determine the interest expense

allocable to your rental activities, you must have records to show

how the proceeds of each debt were used. Pennsylvania does not

follow federal rules regarding prepaid interest.

12. Repairs. Deduct the cost of repairs made to keep your property in

good working condition. Repairs (fixing a broken lock or painting a

room) generally do not add significant value to the property or extend

its life. Improvements that increase the value of the property or

extend its life (such as replacing a roof or renovating a kitchen) must

be capitalized. You cannot expense such costs in full in the year paid

or incurred.

13. Supplies

14. Taxes. Deduct taxes directly related to the rental activity. Deduct the

proportionate share of real estate taxes. You may not deduct taxes

based on income. You may deduct gross receipts and business

privilege taxes.

15. Utilities. Deduct the cost of ordinary and necessary telephone calls

related to your rental activities or royalty income. However, the base

rate (including taxes and other charges) for telephone service for

the first telephone line into your residence is a personal expense

and is not deductible.

CAUTION: Certain utilities, which are not subject to sales and

use tax when purchased exclusively for residential use,

become subject to sales and use tax when used for commercial

purposes. Commercial purposes includes rental property owned by

an individual and held out for rent by another individual or business.

Exceptions include properties with separate metering for rental units

and common areas where the common area utilities are included as

used for commercial purposes and the rental unit property is

residential rental property when the utilities are paid for by the

tenants. If you are including electricity, natural gas, fuel oil, or

kerosene in your calculation of utilities expense and the property is

not listed as commercial property with the utility company or as a

commercial entity with the fuel oil or kerosene supplier, you should

report use tax due on the related expense amounts for these utility

expenses. The use tax on these utilities should be paid via the online

Use Tax Return, or if you are required to file a sales tax return, as

part of that return. Please visit the myPATH website at

mypath.pa.gov to file the Use Tax Return or to register for a use

tax account if you have regular recurring use tax liability on utilities.

16. Depreciation expense. See DIFFERENCES BETWEEN PA PIT

AND IRS on Page 9. You may use any other generally accepted

depreciation method, but you must use it consistently.

17. Other expenses. Include any production costs, transmission costs

or gathering fees taken as a direct deduction by the lessor from

royalty payments. Please itemize.

18. Total Expenses. Add Lines 3 through 17.

19. Income. Subtract Line 18 from Line 1 or 2.

20. Loss. Subtract Line 1 or 2 from Line 18, and fill in the oval.

NOTE: PA law does not permit losses from property rented

where there is no intent to realize a profit.

21. Net Income (Loss). For all properties answering “Yes” to Section

II, Line c, add the amounts for Lines 19 and 20. If a net loss, fill in

the oval. Include the amount on Line 21 along with any other net

income or loss amounts from Line 1 of all Schedule(s) RK-1 or NRK-

1 for PA S corporation(s), Line 1 and Line 12 of all Schedule(s) RK-1,

Line 1 and Line 10 of all Schedule(s) or NRK-1 for partnerships, Line

39 of PA Schedule(s) C and/or Line 41 of PA Schedule(s) F on Line

4 of the PA-40.

CAUTION: If any property has rental periods of less than 30

days and the same property has rental periods of 30 days or

more, enter the property as two separate properties on Schedule E

and provide the income and expenses for each rental period length.

22. For all properties answering “No” to Section II, Line c, add the

amounts for Lines 19 and 20. If a net loss, fill in the oval.

36 www.revenue.pa.govPA-40

NOTE: Pennsylvania does not follow federal At-Risk Rules

or Passive Activity Loss Rules.

23. Rent or Royalty Income (Loss) from PA S Corporations and

Partnerships. For Line 23, enter the rent and royalty income (loss)

amounts from your PA Schedule(s) RK-1 or NRK-1. If PA Schedules

RK-1 or NRK-1 are not provided, enter the amount from the federal

Schedule K-1. Include a statement providing the entity name and

FEIN along with the income (loss) by entity if rent or royalty income

(loss) from any pass-through entity is reported on this line.

24. Net Rent and Royalty Income (Loss). Add Lines 22 and 23. Include

the total on Line 6 of your PA-40.

IMPORTANT: For Lines 21 and 24, amounts reported on Lines 4

and 6 of the PA-40 filed using the Married, Filing Joint filing status

must be calculated separately. If a taxpayer and spouse are reporting

income and losses, a taxpayer’s income may not be offset by a spouse’s

loss and vice versa. All joint income and losses must be split equally when

calculating net income (loss) for the taxpayer and spouse. If both the

taxpayer and spouse have net income or both have net loss from all

income sources (including PA S corporations and partnerships) the

amounts may be added together for the taxpayer and spouse and the

result entered on Line 4 or 6 of PA-40. If the taxpayer has net income and

the spouse has a net loss (or vice versa), the net income amount

separately calculated for the taxpayer or spouse must be entered on Line

4 or 6 of the PA-40.

As a beneficiary of an estate or trust, you should receive a PA Schedule

RK-1 and/or NRK-1. Report the total income that you received or that the

estate or trust credited to you. For PA income tax purposes, an estate or

trust cannot distribute a loss.

Enter the name, identification number, and amount of PA-taxable income

from each PA Schedule RK-1 or NRK-1. Check the box on the schedule

to indicate if the estate or trust income you are reporting is received from

a PA resident estate or trust as reported on a PA Schedule RK-1 or NRK-

1. Do not check this box if you use a federal Schedule K-1 to report the

income. If you only receive a federal Schedule K-1, enter the total amount

of positive income reported, whether the income is your income, your

spouse’s income, or your joint income. Include a photocopy of the federal

Schedule K-1 with your return for all nonresident estates or trusts and/or

each estate or trust for which you fail to receive a PA Schedule RK-1 or

NRK-1.

Include any nonresident withholding reported on Line 6 of a PA-

41 Schedule NRK-1 in Line 17 of the PA-40, Personal Income Tax

Return. When nonresident withholding from an estate or trust is included

in Line 17, you must also provide a copy of the PA-41 Schedule NRK-1

with the PA-40, Personal Income Tax Return.

CAUTION: The federal amount may not be correct for PA

purposes. You should contact the fiduciary of the estate or trust to

verify the correct PA income.

IMPORTANT: Grantor or irrevocable trusts do not distribute losses

as trust income. Therefore, all amounts for PA Schedule J should

be positive.

The instructions for PA Schedule T are on the schedule. Also, please see

Page 19 LINE 8, GAMBLING AND LOTTERY WINNINGS for more

information.

Taxpayers claiming deductions for IRC Section 529 Qualified Tuition

Program contributions, IRC Section 529A Pennsylvania ABLE Savings

Program contributions, Medical Savings Account contributions or Health

Savings Account contributions must complete PA Schedule O.

SECTION I - IRC Section 529 Qualified Tuition Program

Contributions

Line 1. Enter the name and Social Security number for each

beneficiary for whom a contribution was made to an IRC

Section 529 plan during tax year 2022. Enter the amount of

the contribution made for each beneficiary. A taxpayer and

spouse each may take a deduction for contributions up to a

limit of $16,000 per beneficiary. If you have more than 10

beneficiaries for which you are claiming a deduction, please

include a statement showing each beneficiary’s name, Social

Security number, and the amount of deduction claimed for

each of the beneficiaries by the taxpayer and/or spouse.

REMINDER: Include the amount of any IRC Section 529

contribution included on the immediately preceding tax year’s

PA Schedule P.

Line 2. Add the amount of contributions made by the taxpayer and/or

spouse and include the total in the appropriate columns.

SECTION II – IRC Section 529A Pennsylvania ABLE Savings

Account Program Contributions

Line 3. Enter the name and Social Security number of each

beneficiary for whom a contribution was made to an IRC

Section 529A Pennsylvania ABLE Savings Program during

tax year 2022. Enter the amount of the contribution made for

each beneficiary. The maximum contributions to any one IRC

Section 529A Pennsylvania ABLE Savings Program account

by one or more contributors cannot exceed the annual

federal gift tax exclusion amount. In addition, the maximum

contributions by a contributor to one or more accounts cannot

exceed the annual federal gift tax exclusion amount. The

current annual federal gift tax exclusion amount is $16,000.

A taxpayer and spouse each may take a deduction for

contributions up to a limit of $16,000 per contributor. If you

have more than three beneficiaries for which you are

claiming a deduction, please include a statement showing

the name, Social Security number, and the amount of

deduction claimed by the taxpayer and/or spouse for each

beneficiary.

Line 4. Add the amount of contributions made by the taxpayer and/or

spouse and include the total in the appropriate columns.

SECTION III – Other Deductions and Limitations

Line 5. Enter the amount of Medical Savings Account contributions

allowed for federal income tax purposes included on your

federal Form 1040, Schedule 1. If you claim this deduction,

you must include a copy of Pages 1 and 2 of your federal

Form 1040 along with a copy of your Form 1040, Schedule

1, with your PA-40 return.

Line 6. Enter the amount of Health Savings Account contributions

allowed for federal income tax purposes included on your

federal Form 1040, Schedule 1. If you claim this deduction,

you must include a copy of Pages 1 and 2 of your federal

Form 1040 along with a copy of your Form 1040, Schedule

1, with your PA-40 return.

PA SCHEDULE J (LINE 7)

PA SCHEDULE T (LINE 8)

PA SCHEDULE O (LINE 10)

37www.revenue.pa.gov PA-40

Line 7.

Add the amounts from Lines 2, 4, 5 and 6 together for the

taxpayer and/or spouse columns.

Line 8.

Enter the total income included in Line 9 of your PA-40,

calculated for the taxpayer and spouse separately.

NOTE:

When added together, the amounts reported separately

for the taxpayer and/or spouse for Line 8 of PA Schedule O should

equal Line 9 of the PA-40.

Line 9.

Compare the amounts on Lines 7 and 8 for the taxpayer and

spouse. Enter the lesser of the amounts for each column.

Line 10.

Add the amounts from Line 9 for the taxpayer and spouse

together. Enter the Total Other Deductions amount here and

on Line 10 of your PA-40 return.

What is Tax Forgiveness?

Tax Forgiveness is a credit that allows eligible taxpayers to reduce all or

part of their PA tax liability. Tax Forgiveness:

•

Gives a state tax refund to some taxpayers; and

•

Forgives some taxpayers of their liabilities even if they have not paid

their PA personal income tax.

Who is Eligible for Tax Forgiveness?

You, and your spouse if applicable, are eligible if:

You are subject to PA personal income tax. You and/or your spouse

are liable for PA tax on your income (or would be liable if you earned,

received, or realized PA-taxable income);

You are not a dependent on another person's federal tax return; and

You meet the eligibility requirements.

NOTE

: A dependent child may be eligible if he or she is a

dependent on the PA Schedule SP of his or her parents,

grandparents, or foster parents. See

Pages 38 and 39.

How Do I Claim Tax Forgiveness?

To claim Tax Forgiveness, complete and submit a PA Schedule SP, and:

Determine your Eligibility Income. If married, whether filing jointly or

separately, you must determine your total (your Eligibility Income

plus your spouse’s Eligibility Income) joint Eligibility Income in

Section III

Determine your Filing Status in

Section I

Calculate your Tax Forgiveness Credit, using the applicable Eligibility

Income Table, in

Section IV

IMPORTANT:

There is no advantage to filing separately because

married claimants must report their Joint Eligibility Income on PA

Schedule SP. You must include your spouse’s

SSN

if filing separate.

Claiming Dependents on Separate PA Schedules SP

It is possible that you and your spouse file jointly for federal purposes,

but must file separately for PA purposes. If you qualify for Tax

Forgiveness, you must each complete PA Schedule SP as if filing jointly.

You each must report the same information including dependents and

your joint eligibility income. You must fill in the Married and Filing Separate

oval in

Section I of each PA Schedule SP. You must each submit a copy

of the PA Schedule SP with your PA tax return.

Section I

. Filing Status

Fill in the oval that describes your status as of Dec. 31,

2022

Unmarried means single, widowed and could not or did not elect to file

a joint return in the year of death of the taxpayer and/or spouse, or

divorced on Dec. 31,

2022

Separated means:

•

Separated and living apart at all times during the last six months of

2022

; or

•

Separated pursuant to a written separation agreement.

Married

means:

•

Married and lived together; or

•

Separated and lived apart, but for less than the last six months of

2022

; or

•

Separated, but not by a written separation agreement; or

•

Elected to file a joint return in the year of death with a deceased

taxpayer and/or spouse.

Also, fill in the correct oval for your specific filing condition.

When claiming Tax Forgiveness together, one of you must meet the

eligibility requirements, but you must use your Joint Eligibility Income and

Eligibility Income Table 2.

When filing separately, the taxpayer and spouse must combine their

eligibility incomes to determine if they meet the eligibility requirements. A

married taxpayer cannot claim Tax Forgiveness independently of his or

her spouse. Married claimants are not dependents of one another for Tax

Forgiveness purposes, even when one spouse does not have any

Eligibility Income. You each must use your Joint Eligibility Income and

Eligibility Income Table 2, and fill in the oval and certify that you are using

the same information for PA Schedule SP.

When one spouse is claimed as a dependent on another person’s federal

income tax return, otherwise qualifying married taxpayers must file

separately.

EXAMPLE:

Scott is a dependent on his parents’ federal income tax return

and is not eligible for Tax Forgiveness. His wife, Paula, is not a dependent,

and may complete PA Schedule SP. Paula may not claim Scott as a

dependent, but must include his Eligibility Income when calculating her

Total Eligibility Income. Additionally, if Scott’s parents qualify for Tax

Forgiveness, Scott may also qualify if he included Paula’s income in his

Total Eligibility Income.

Deceased means you are filing for a person who died during

2022

and/or

the deceased person’s surviving spouse or deceased spouse could not

or did not elect to file a joint return with the deceased taxpayer.

Annualization of a deceased taxpayer and/or spouse’s income may be

required in order to determine total eligibility income for Tax Forgiveness

purposes.

Annualization of Income

In order to annualize a taxpayer’s income, you may use the income

realized by the decedent, divided by the number of days or months the

taxpayer lived and multiplied by 365 days or 12 months. Subtract from

that product the amount of realized income and include the remainder in

the amount reported on Line 2 of

Section III

for PA Schedule SP. One

time transactions, such as those from the sale of stock or real property,

need not be included when determining the amount of the daily or monthly

income for a decedent.

When determining the amount of annualized income, you may also base

the total eligibility income on the prior year’s return if the individual was

eligible for Tax Forgiveness, received approximately the same income

during this taxable year and did not have any transactions that were

different from the previous tax year. The department will accept a

reasonable calculation of the decedent’s annual Eligibility Income.

PA SCHEDULE SP (LINE 21)

38 www.revenue.pa.govPA-40

EXAMPLES: Jerry and Pat have been married for 50 years and Jerry

dies on October 1 of the most recent tax year. Pat elects to file a joint

return with her deceased spouse. Jerry worked as a custodian for a local

school to supplement their social security income and died while still

employed. Jerry and Pat also had joint interest and dividend income

during the tax year. Jerry’s compensation income must be annualized

and the amount Jerry might have earned for the remaining three months

of the tax year must be included on Line 2 in Section III of PA Schedule

SP. Because Pat is electing to file a joint return, the interest and dividend

income from the joint ownership of the assets is not required to be

annualized. If the surviving spouse (Pat) or Jerry’s estate elects to file a

separate return, Jerry’s return would need to include annualized income

from the interest and dividend classes of income in addition to the

annualized compensation income.

IMPORTANT: Surviving spouses should not include any income

in respect of a decedent, income that should be included on the

estate tax return, or any income of the deceased taxpayer (including the

decedent’s half of any joint income received prior to the decedent’s date

of death) in the taxable income or in the calculation of the eligibility income

of the surviving spouse when a separate return is filed by the surviving

spouse.

Students

A full-time student who is a dependent on his/her parents’ federal income

tax return cannot claim this credit, regardless of his/her income, unless

his/her parents are eligible for Tax Forgiveness. In this case, the student

claimant must file his/her own tax return and PA Schedule SP.

Nonresidents and Part-Year Residents

Taxpayers who are nonresidents and part-year residents of Pennsylvania

may claim Tax Forgiveness if meeting all the eligibility requirements. Such

taxpayers must include in their eligibility income all income as described

whether earned within or outside Pennsylvania. Nonresident and part-

year resident taxpayers who file paper copies of the PA-40 must also

include a copy of Pages 1 and 2 of their federal income tax return along

with their completed PA Schedule SP.

CAUTION: If you are a resident of a reciprocal state and have PA-

taxable income in classes other than compensation (see also

Resident of a Reciprocal State Filing for a Refund on Page 11), you must

include all your nontaxable income (including the compensation not

taxable to Pennsylvania as a resident of a reciprocal state) earned outside

Pennsylvania on Line 6 of PA Schedule SP.

Section II. Dependent Children

A dependent is a minor or adult child claimed as a dependent on a 2022

federal income tax return.

The Department of Revenue has a two-step test for a dependent child:

1. Is the individual a child of the claimant?

For PA income tax purposes, child includes the natural child, adopted

child, or step-child of a parent. Child also includes a grandchild of a

grandparent and a foster child of a foster parent. Therefore, you can

claim a son or daughter, a grandchild, or a foster child as a

dependent for PA Schedule SP if you can claim the child as a

dependent on your federal income tax return.

However, an aunt, uncle, or unrelated person cannot claim a child

as a dependent, as defined above, even if claiming the child as a

dependent on a federal income tax return.

2. Can the claimant claim the child as a dependent for federal tax

purposes?

The age, status as a full-time student, and gross income of a

daughter, son, granddaughter, grandson, or foster child are factors

only in determining whether the claimant can claim the child as a

dependent for federal purposes. For example, parents that can claim

a qualifying 30-year-old child for federal purposes can claim that

child as a dependent for PA Schedule SP purposes.

You cannot claim a dependent child on PA Schedule SP if:

• The dependent is not your child, as defined in questions 1 and 2;

• You cannot claim the child on your federal tax return;

• You are unmarried for Tax Forgiveness purposes, and your former

spouse by agreement or court decree can claim your child as a

dependent for federal and PA Schedule SP purposes; or

• Your child’s other parent, by agreement or court decree, can claim

your child as a dependent for federal tax and PA Tax Forgiveness

purposes.

You cannot claim any other adult as a dependent, even if doing so on a

federal tax return.

A dependent child with taxable income in excess of $33 must file a PA

tax return. If that child’s parents qualify for Tax Forgiveness, that child is

also eligible for this credit. The child must file a tax return and a PA

Schedule SP. The child must also include any child support paid to his/her

parent on his/her behalf in his/her Eligibility Income.

Complete Lines 1 and 2.

1. Provide all the requested information for each child.

2. Enter the number of dependent children you are claiming.

NOTE : If you do not have any dependents, go to Section III.

CAUTION: If claiming an adult child, an adopted child, a foster

child or a child with a different last name than yours, you must

include a copy of Pages 1 and 2 of your 2022 federal income tax return.

If you are filing PA Schedule SP for the first time or claiming a new

dependent for first time that enables you to qualify for tax

forgiveness, please include copies of the birth certificates and Social

Security cards of all the dependents listed in Section II. For taxpayers

with more than nine dependent children, the department recommends

that all the children included as dependents on PA Schedule SP also be

included as dependents for federal income tax purposes even if no tax

benefit for federal tax purposes results from including them as dependents

on the federal return.

Section III. Eligibility Income

Use Column A if unmarried or married filing jointly. Use the columns under

Column B and C if married filing separately.

1. PA Taxable Income. Enter your total PA Taxable Income amount

from Line 9 of your PA-40 form.

Nontaxable Income. On Lines 2 through 10, you must include income

that you do not report as taxable on your PA return, but PA law requires

you to report for Tax Forgiveness purposes. If you do not have an amount

to report on Lines 2 through 10, enter zero. Annualized income from each

of the sources for Lines 2 through 10 should also be reported for

decedents on the respective lines.

2. Nontaxable interest, dividends, and gains and/or annualized

income. Include the tax-exempt interest from Lines 6 and 7 of PA

Schedule A and the exempt-interest dividends included in Line 3 of

PA Schedule B as well as any exempt gains from investments in

direct obligations of the federal government, Pennsylvania, and

political subdivisions of Pennsylvania. Include the nontaxable portion

of gain from the sale of any property. Include nontaxable income

39www.revenue.pa.gov PA-40

received as a beneficiary of an estate or trust as well as any tax-

exempt income from a partnership or S corporation’s participation

in a Keystone Opportunity Zone. For decedents only: in addition to

any annualized income for nontaxable interest, dividends, and gains,

include the difference between the total annualized taxable income

and the PA-taxable income from Line 1 above.

3. Alimony. Enter the amount of alimony that you receive. Do not

include child support payments received by a spouse.

4. Insurance proceeds and inheritances. This amount includes the

total proceeds received from life or other insurance policies. Also,

include inherited cash or the value of property received as well as

the amount received as reported on federal Form 1099-R with

distribution Code 4 reported in Box 7 of the form. Also include any

survivor annuity benefits reported on federal Form 1099-R with

distribution Code 7 reported in Box 7.

5. Gifts, awards, and prizes. Include the total amount of nontaxable

cash or property received as gifts from others. Also, include awards

received in recognition of civic and social achievements and noncash

prizes from the Pennsylvania Lottery.

6. Non-PA income. Part-year residents and nonresidents must

complete this line. Enter the total of all income, not already reported

on this schedule, that you (and your spouse, if applicable) earned,

received or realized while residing outside Pennsylvania. Include

any amount exempted from taxation under the Servicemembers Civil

Relief Act (see Page 41 for additional information). If you are a part-

year resident or nonresident and you file a paper copy of your PA-

40 return, you must also include a copy of Pages 1 and 2 of your

federal income tax return.

7. Nontaxable military income. This amount represents the difference

between the total military income you earned and the amount you

report on your PA tax return. Do not include combat zone pay and

hazardous duty pay.

8. Gain excluded from the sale of a residence. Enter your

nontaxable gain.

9. Nontaxable educational assistance. Include the total value of all

nontaxable scholarships, fellowships, and stipends as well as the

amount of any federal and state educational grants received. Do not

include student loans. Also, include the value of tuition reductions

offered as part of your employer’s benefit plan.

10. Cash received for personal use from outside your home. Include

on Line 10 the following kinds of nontaxable income when

determining your Eligibility Income:

• Support you receive from a spouse or former spouse who does

not live in your household. Do not include payments you receive

for child support here – see the instructions for Section II.

• Any payments received from other persons outside your

household, including nontaxable cash or property received for

personal use, such as cash received from a parent to buy

clothing, or gifts from grown children. Do not include monies

paid pursuant to a cost-sharing arrangement.

ELIGIBILITY INCOME TABLE 1. Unmarried, Separated and Deceased Claimants

If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

YOU ➡

$6,500 $6,750 $7,000 $7,250 $7,500 $7,750 $8,000 $8,250 $8,500 $8,750

▼ DEPENDENT CHILDREN

1 $16,000 $16,250 $16,500 $16,750 $17,000 $17,250 $17,500 $17,750 $18,000 $18,250

2 $25,500 $25,750 $26,000 $26,250 $26,500 $26,750 $27,000 $27,250 $27,500 $27,750

3 $35,000 $35,250 $35,500 $35,750 $36,000 $36,250 $36,500 $36,750 $37,000 $37,250

4 $44,500 $44,750 $45,000 $45,250 $45,500 $45,750 $46,000 $46,250 $46,500 $46,750

5 $54,000 $54,250 $54,500 $54,750 $55,000 $55,250 $55,500 $55,750 $56,000 $56,250

6 $63,500 $63,750 $64,000 $64,250 $64,500 $64,750 $65,000 $65,250 $65,500 $65,750

7 $73,000 $73,250 $73,500 $73,750 $74,000 $74,250 $74,500 $74,750 $75,000 $75,250

8 $82,500 $82,750 $83,000 $83,250 $83,500 $83,750 $84,000 $84,250 $84,500 $84,750

9 $92,000 $92,250 $92,500 $92,750 $93,000 $93,250 $93,500 $93,750 $94,000 $94,250

Then your Percentage of Tax Forgiveness and the Decimal Equivalent is:

100

1.0 .90 .80 .70 .60 .50 .40 .30 .20 .10

ELIGIBILITY INCOME TABLE 2. Married Claimants, even if filing separately

If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

YOU &

➡

SPOUSE

$13,000 $13,250 $13,500 $13,750 $14,000 $14,250 $14,500 $14,750 $15,000 $15,250

▼ DEPENDENT CHILDREN

1 $22,500 $22,750 $23,000 $23,250 $23,500 $23,750 $24,000 $24,250 $24,500 $24,750

2 $32,000 $32,250 $32,500 $32,750 $33,000 $33,250 $33,500 $33,750 $34,000 $34,250

3 $41,500 $41,750 $42,000 $42,250 $42,500 $42,750 $43,000 $43,250 $43,500 $43,750

4 $51,000 $51,250 $51,500 $51,750 $52,000 $52,250 $52,500 $52,750 $53,000 $53,250

5 $60,500 $60,750 $61,000 $61,250 $61,500 $61,750 $62,000 $62,250 $62,500 $62,750

6 $70,000 $70,250 $70,500 $70,750 $71,000 $71,250 $71,500 $71,750 $72,000 $72,250

7 $79,500 $79,750 $80,000 $80,250 $80,500 $80,750 $81,000 $81,250 $81,500 $81,750

8 $89,000 $89,250 $89,500 $89,750 $90,000 $90,250 $90,500 $90,750 $91,000 $91,250

9 $98,500 $98,750 $99,000 $99,250 $99,500 $99,750 $100,000 $100,250 $100,500 $100,750

Then your Percentage of Tax Forgiveness and the Decimal Equivalent is:

100

1.0 .90 .80 .70 .60 .50 .40 .30 .20 .10

NOTE: If claiming more than nine (9) dependent children, go to the PA Personal Income Tax Guide – Tax Forgiveness section on the department's website.

40 www.revenue.pa.govPA-40

• Nontaxable payments to your employer’s cafeteria plan for

hospitalization, sickness, disability, or death, supplemental

unemployment, or strike benefits.

• Payments received as a foster parent for providing in-home care

for foster children.

If claiming a foster child in Section II, you must include

the payments you received as a foster parent. However,

if the foster care program did not place the child in your home,

or you did not receive any payments for providing foster care,

submit a written explanation that you do not have any income to

report as a foster parent. Include an explanation of the child’s

relationship to you.

• The value of the personal use of employer-owned or leased

property (if included in federal taxable income).

• The value of government education grants.

• In case of a Chapter 7 or 11 bankruptcy filed under Section 1398

of the Internal Revenue Code, the total amount of income

reported on Line 7 of PA-41 Fiduciary Income Tax Return for a

resident bankruptcy estate prepared on behalf of the debtor

taxpayer; or the total of the positive income reported on Lines 1,

2a and 3 through 8 of federal Form 1041 for a nonresident

bankruptcy.

Do not include the following types of nontaxable income in Line 10 when

calculating eligibility income:

• Social Security and Railroad Retirement Benefits;

• Retirement benefits from Pennsylvania eligible retirement plans after

becoming eligible to retire and retiring;

• United Mineworkers pensions;

• Child support (unless a dependent child of a taxpayer also eligible

for Tax Forgiveness);

• Military pension benefits;

• Civil Service annuity payments;

• Payments received under workers’ compensation acts, occupational

disease acts or similar legislation including Heart and Lung Pensions;

• Payment for injuries received while working and damages received,

whether by suit or otherwise, for personal injuries;

• Sick pay and disability benefits, including payments by third party

insurers for sickness and disability;

• Damage awards and settlements from physical injury or sickness –

pain and suffering, emotional distress;

• Personal use of an employer’s owned or leased property and/or

services, at no cost or at a reduced cost (if not included in federal

taxable income); or

• Income from contracts of insurance for long-term care that do not

have accumulated refundable reserves payable upon lapse or

surrender.

11. Total Eligibility Income. Add Lines 1 through 10, and enter the total.

If using Columns B and C, add each column, and enter the total on

Line 11. Eligibility Income is the total amount of your PA-taxable and

nontaxable income that you use to determine your percentage of Tax

Forgiveness.

Section IV. Calculating Your Tax Forgiveness

12. PA Tax Liability. Enter the amount of your tax due from your PA-40,

Line 12. If filing an amended return, you must use the amount from

Line 12 of the amended PA-40.

13. Less Resident Credit. Enter your credit from your PA-40, Line 22.

14. Net PA Tax Liability. Subtract Line 13 from Line 12.

15. Percentage of Tax Forgiveness. Find your percentage using your

dependents from Section II, Line 2, and your Eligibility Income from

Section III, Line 11, and the appropriate Eligibility Income Table. Enter

the percentage as a decimal on Line 15.

16. Tax Forgiveness Credit. Multiply Line 14 by the decimal on Line

15, and enter on your PA-40, Line 21.

The instructions for PA Schedule DC are on the schedule. Also, please

see Page 22 LINE 23, TOTAL OTHER CREDITS for more information.

PA SCHEDULE DC (LINE 23)

APPENDIX

REV-1882 - Health Insurance Coverage Information Request

The Pennsylvania Department of Revenue and the Pennsylvania Health

Insurance Exchange Authority, also known as Pennie, have teamed up

to gather information from residents who do not have health insurance

coverage, making it easier to apply and enroll in comprehensive health

insurance through Pennie. By completing and including a REV-1882 with

your Pennsylvania income tax return, you are giving permission for the

Pennsylvania Department of Revenue to share information from your state

tax return with Pennie so that Pennie can evaluate your eligibility for no-

cost or low-cost health care coverage. The instructions for the REV-1882

are on the schedule.

2023 PA Estimated Payment Requirements

If you expect to earn, receive, or realize $8,000 of PA-taxable income

($246 of PA tax) that is not subject to withholding by a Pennsylvania

employer in 2023, you must make 2023 estimated tax payments.

IMPORTANT: If you are a PA resident working in a reciprocal-

agreement state and your employer is not withholding PA tax, you

must make PA estimated tax payments.

The department no longer mails preprinted coupons to taxpayers.

Taxpayers must obtain copies of the 2023 PA-40ES forms from the

department’s website or order the forms from the department using the

Forms Ordering Service found on Page 2. If you made your estimated

payments using software produced forms or via the Revenue e-Services

Center or via myPATH, the department will continue to accept your 2023

PA-40ES forms.

Military Pay - Members of the Armed Forces

PA residents report military pay earned while in Pennsylvania or earned

when not on active duty status as taxable compensation on Line 1a. Active

duty military pay is not taxable for Pennsylvania purposes if earned by a

PA resident serving on full-time active duty (or federal active duty for

training) outside the state. In addition, Act 182 of 2006 expanded the

definition of active duty military income to include income from the U.S.

government or the Commonwealth of Pennsylvania for active state duty

for emergency within or outside the commonwealth. This addition includes

duty ordered pursuant to 35 PA.C.S. Ch. 76 (relating to the Emergency

Management Assistance Compact). However, other income is still taxable.

41www.revenue.pa.gov PA-40

Please see the information for Combat Zone and Hazardous Duty Service

below.

Do not include qualifying active duty military pay earned outside of PA in

taxable compensation reported on Line 1a of the PA-40. However, you

must submit legible copies of all your Form(s) W-2, and your military

orders assigning you to federal active duty outside Pennsylvania. While

your Form W-2 may state active duty, it does not show where you

performed your military service. Military personnel stationed abroad

should use their APO or FPO addresses.

For more information, request the brochure Military Pay for Pennsylvania

Personal Income Tax Purposes (REV-612).

CAUTION: PA residents serving in the Merchant Marines, U.S.

Public Health Service, the National Oceanic and Atmospheric

Administration, the U.S. Foreign Service or contractors working in foreign

countries, are subject to tax on compensation whether earned within or

outside Pennsylvania. However, compensation earned by PA residents

serving in the Merchant Marines or U.S. Public Health Service called to

active duty in a Combat Zone or hazardous duty zone is not subject to

tax in Pennsylvania. Copies of executive orders that make the active duty

in the Merchant Marines military active duty are required to be included

with the return.

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) affects the treatment of

residency and income for spouses of military personnel for state tax

purposes. If a Pennsylvania resident service member is serving outside

Pennsylvania and their nonmilitary spouse earns income in that other

state – and the spouse claims relief under the SCRA – the spouse’s

income is only taxable to Pennsylvania. If a Pennsylvania nonresident

service member is serving in Pennsylvania and their nonmilitary spouse

earns income in Pennsylvania, the spouse’s compensation income is not

taxable to Pennsylvania under SCRA, when the service member is in

Pennsylvania in compliance with military orders, the servicemember’s

spouse is in Pennsylvania solely to be with his/her spouse and the

servicemember’s spouse elects to have the same residence for purposes

of taxation as the servicemember regardless of the date on which their

marriage occurred. PA-source income, from a business, profession, farm,

rental or royalty property, related to a business or property located in

Pennsylvania remains taxable to PA nonresident military personnel and

their spouses and is not covered by the SCRA. For detailed information

on how SCRA impacts state taxation of income earned by a service

member’s nonmilitary spouse, please review updated Tax Bulletin 2010-

01 on the department’s website, www.revenue.pa.gov.

Combat Zone and Hazardous Duty Service

Pennsylvanians serving in combat zones or qualified hazardous duty

areas designated by the President of the U.S. are given the same

additional time to file and pay their PA 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. Print COMBAT ZONE at the top of your return. Mail your return

and military orders to:

Regarding: COMBAT ZONE

PA DEPARTMENT OF REVENUE

BUREAU OF INDIVIDUAL TAXES

PO BOX 280600

HARRISBURG PA 17128-0600

If you are filing your return electronically, you must still fax or mail copies

of your orders. Print COMBAT ZONE at the top of your orders. Fax your

orders to 717-772-4193 or mail your orders to:

Regarding: COMBAT ZONE

PA DEPARTMENT OF REVENUE

ELECTRONIC FILING SECTION

PO BOX 280507

HARRISBURG PA 17128-0507

Extension of Time to File

The department will grant up to a six-month extension of time for filing a

PA income tax return. Unless you are outside the U.S., the department

will not grant an extension for more than six months.

CAUTION: An extension of time for filing will not extend the time

for paying the tax.

Follow these procedures when applying for an extension of time to file:

1. If you owe income tax on your PA tax return, you must:

• Pay by check with a timely Application for Extension of Time to

File (PA Form REV-276); or

• Pay by electronic funds transfer (EFT) to have your extension

payment deducted from your bank account. Go to myPATH at

www.revenue.pa.gov to arrange an EFT payment. You do not

need to mail a PA Form REV-276; or

• Pay by credit/debit card over the Internet at mypath.pa.gov. You

may also pay with a credit card by calling 1-800-2PAYTAX

(1-800-272-9829). You do not need to mail a PA Form REV-276.

This option is not available if you never filed a Pennsylvania

personal income tax return or made an estimated payment prior

to making the request for the extension and payment via this

method.

2. If you have an approved extension for filing your federal income tax

return, and you do not owe PA income tax on your 2022 tax return,

the department will grant you the same extension for filing your PA

tax return. You do not have to submit a PA Form REV-276 or federal

Form 4868 before the due date.

3. If you do not have an extension for filing your federal income tax

return, request an extension on PA Form REV-276.

CAUTION: An extension of time to file cannot be filed electronically

if no payment is due with the extension. A federal extension or a

PA Form REV-276 is required to be filed.

Mail your Form REV-276, with or without a payment, to:

PA DEPARTMENT OF REVENUE

BUREAU OF INDIVIDUAL TAXES

PO BOX 280504

HARRISBURG PA 17128-0504

When filing your PA tax return:

• Fill in the extension request oval at the top of your PA-40.

• If you did not file a PA Form REV-276, submit a copy of the federal

Form 4868 with your PA tax return.

• If you electronically filed your federal extension, submit a statement

with an explanation and the confirmation number you received.

• If you submitted PA Form REV-276, electronically submitted your PA

extension payment via EFT or made your extension payment by

credit/debit card, you do not have to submit the extension paperwork

with your PA tax return.

The department will impose:

• An underpayment penalty if you do not pay at least 90 percent of

your 2022 tax due by April 18, 2023; and the remaining balance with

your PA return by the extended due date; and

• Interest on the amount you do not pay by April 18, 2023.

42 www.revenue.pa.govPA-40

Amended Returns

If you realize you made a mistake on your 2022 PA tax return, you must

correct your return by filing a separate 2022 PA-40 return, marking the

Amended Return oval on the return and completing and submitting

Schedule PA-40 X for the tax year being amended with your amended

return. If you made a mistake on a 2010 or earlier tax year return, you

must obtain a PA-40 PA Personal Income Tax Return booklet for the year

you want to amend and use the Amended Returns instructions included

therein.

If you use software that supports the amended PA return, you can amend

your 2020 or later year return using the Modernized e-File (MeF) platform

for Fed/State e-file. If not using the MeF platform for filing Fed/State

e-file returns, obtain a PA-40 PA Personal Income Tax Return booklet for

the year you want to amend, and follow the Amended Returns instructions

included therein.

For filing an amended return on a 2022 PA-40, complete the following

steps:

1. Fill in the Amended Return oval, and write AMENDED RETURN at

the top of the PA tax return.

2. Complete the Schedule PA-40 X. Enter the amended amounts from

Schedule PA-40 X per the PA-40 X instructions.

3. Calculate your Line 11 amended total PA-taxable income.

4. Calculate your Line 12 amended PA tax liability.

5. Enter your Line 24 amended total payments and credits.

6. Complete Line 27 to report any adjusted penalty and interest to be

included on the return.

7. DO NOT complete Lines 28 and 29. The department will properly

calculate your amended total payment due or overpayment.

8. Complete Lines 30 through 36 to notify the department how to

disperse your overpayment.

The department will take your original refund or payment into account

when reviewing the amended PA-40. Be sure to sign your amended return

and mail it with all explanations and attachments using the Mailing

Instructions for each type of return beginning on Page 25.

Refunds from Amended Returns

You can file an amended PA return and request a refund if you over-

reported income or did not claim allowable credits or deductions. You

must file your amended PA return within three years from the original due

date or extended due date.

Under PA law, a taxpayer must file a refund petition within three years

following the date of payment. For a refund of tax shown on a timely filed

PA tax return, the Board of Appeals may not accept a petition for refund

unless the taxpayer files the petition within three years of the original due

date or payment of tax.

An amended return should not be filed requesting a refund in the

nine month period prior to the close of the statute of limitations for

a tax period (three years from the original or extended due date of the

return). A Petition for Refund (Form REV-65) should be filed for

amendments requesting refunds during that time period to protect appeal

rights in the event the request for refund is denied. A Petition for Refund

may not be acted upon by the Board of Appeals if an amended return

refund is denied and the Petition for Refund is filed after the three-year

period has ended.

CAUTION: You may not file an amended PA return after the

department issued an assessment if your amendment relates to

the same taxable year and item of income, gain, deduction, or loss that

the department assessed. You must either file a timely petition for

reassessment or pay the assessment and file a timely refund petition.

Under PA law, you must submit a Board of Appeals Petition Form (Form

REV-65) no later than six months after the date shown on the

assessment.

Underreported Income for Amended Returns

If you discover that you did not report taxable income or erroneously

claimed credits or deductions, you must correct the error within 30 days.

File an amended PA return and pay the additional tax, plus penalty and

interest. Amended returns to pay additional tax can be filed at any time.

There is no statute of limitations for filing a return when an error is

discovered that results in additional tax due.

Copies of Previously Filed Returns

To receive copies of previously filed tax returns, you should complete and

sign Form REV-467, Authorization for Release of Tax Records, and send

it to:

PA DEPARTMENT OF REVENUE

BUREAU OF ADMINISTRATIVE SERVICES

12TH FLOOR STRAWBERRY SQUARE

HARRISBURG PA 17128-1200

You may also fax your request to 717-783-4355. If someone other than

the taxpayer is making the request, Form REV-677, Power of Attorney

and Declaration of Representative, must be submitted with the request

for the release of the tax records. If a taxpayer is deceased, sufficient

evidence to establish that you are authorized to act for the taxpayer's

estate must be provided to the department.

Please allow four to six weeks for a request to be processed.

Penalty and Interest

• Penalties for Not Filing or for Filing a Late Return

PA law imposes a penalty if you do not file your return on or before

the due date, or the approved extended due date. The penalty is 5

percent of the unpaid tax due for each month or fraction of a month.

PA law imposes this penalty unless you show reasonable cause for

late filing. The maximum penalty is 25 percent. The minimum penalty

is $5. The department may prosecute any person who attempts to

evade or defeat his or her PA tax responsibility.

• Penalties for Underpayment or for Late Payment

If you do not pay the full amount of your tax due with your extension

or your timely filed return, PA law imposes a 5 percent underpayment

penalty.

If you do not report taxable income that is more than 25 percent of

the taxable income shown on your return, PA law imposes an

additional penalty. This penalty is 25 percent of the tax due on your

unreported income.

You are liable for these penalties if your underpayment of tax is due

to negligence or intentional disregard of rules and regulations, but

without intent to defraud. The department may assess both late filing

and underpayment penalties if you file your return after the due date,

or extended due date, and do not pay your tax liability with your

return.

CAUTION: If you filed late or did not pay your Pennsylvania

income tax on time, the department will calculate your penalty and

interest and issue a notice. If any part of any underpayment of the tax is

due to fraud, PA law imposes a penalty of 50 percent of the

underpayment.

• Penalty for Uncollectible Funds

PA tax law imposes an additional penalty on funds submitted via

check and not paid on presentment or an electronic funds transfer

(EFT) payment and not credited on transmission. The penalty is 10

43www.revenue.pa.gov PA-40

percent of the face amount of the check or EFT payment. The

penalty imposed cannot exceed $100 nor be less than $25.

• Other Penalties

PA law imposes a $500 penalty on a taxpayer that files a frivolous

return. A frivolous return is one that:

• Does not contain sufficient information for the department to

determine the correct liability;

• Contains information indicating the liability is significantly

incorrect; or

• Indicates that the taxpayer is filing in a manner to delay or

impede the administration of the PA tax law.

PA law imposes a penalty on any person required to furnish an

information return that does not file a required information return or

files a false or fraudulent information return. The penalty is $250 for

each information return.

• Interest for Nonpayment or Late Payment

If you do not pay the tax due on or before the due date, PA law

imposes interest from April 18, 2023, to the date of payment at the

annual interest rate that the U.S. Secretary of the Treasury

establishes as of January 1 of each calendar year.

Abatement of Penalties

Penalties may be abated only if the taxpayer can show reasonable cause

for abatement in his/her petition for reassessment of the penalty. To be

timely, the petition must be filed with the department’s Board of Appeals

within 60 days of the mailing date of the penalty assessment.

Reporting Income from PA Schedules RK-1 and NRK-1

and Federal Schedule K-1

See REPORTING NET INCOME, GAINS, AND LOSSES ON LINE 4, 5

AND 6 ONLY on Page 15 for additional information.

Nonresident of Pennsylvania - You must report all taxable income you

earned, received, and realized from PA sources.

Part-Year Resident of Pennsylvania - You must report all taxable

income you earned, received, and realized from all sources for the time

you were a PA resident, and report the PA-taxable income you earned,

received, and realized from sources within Pennsylvania for the time you

were not a PA resident. Read the following instructions for each PA

income class and on Pages 10 through 21.

Apportioning Income and Loss on PA Schedule NRH

As a nonresident, you may apportion income that you earn both within

and outside Pennsylvania. You apportion your PA-taxable compensation

when your employer does not separately report your PA wages on your

Form W-2. You must apportion income (loss) from operating a business

within and outside Pennsylvania, unless you maintain separate books

and records that clearly substantiate your PA source receipts, expenses,

liabilities, etc.

Allocating Income and Loss

As a nonresident, you may allocate income (loss) from a business when

you maintain separate PA books and records. You must allocate income

(loss) from real or tangible property located within Pennsylvania. You must

allocate gain (loss) from the sale, exchange, or disposition of real or

tangible property located within Pennsylvania. You allocate income (loss)

from rental property, royalties, patents, and copyrights located within

Pennsylvania. You allocate winnings from gambling and lotteries from

Pennsylvania sources.

Compensation

As a nonresident, you pay PA income tax on compensation for services

you perform in Pennsylvania. Your PA employer should report and

withhold PA tax from the exact amount of your PA-taxable compensation.

If your employer does not report, or incorrectly reports, your PA-taxable

compensation, you must use PA Schedule NRH to apportion your

compensation and any allowable employee business expenses.

IMPORTANT: If you are a nonresident, part-year resident, or

former resident of Pennsylvania, payments you receive from an

Early Retirement Incentive Plan, Deferred Compensation Plan, or

exercising of stock options may be taxable in whole or in part to

Pennsylvania if you earned any of these amounts while working in

Pennsylvania. You may be required to substantiate the number of days

worked in Pennsylvania or amount of time spent in Pennsylvania to

determine the taxable portion in Pennsylvania.

CAUTION: Special rules apply for residents of reciprocal

agreement states working within the commonwealth. Special rules

also apply for Ohio resident shareholder-employees with a 20 percent or

greater interest in a PA S corporation who worked or performed services

in Pennsylvania in 2022. See Page 11 of the instructions and the PA

Personal Income Tax Guide – Gross Compensation section for more

information.

Interest Income, Dividend Income, and Gain from the Sale

of Intangible Property

As a nonresident, you do not pay PA income tax on ordinary interest,

ordinary dividends, and any gain you realize on the sale, exchange, or

disposition of intangible personal property, such as stocks and bonds.

You cannot use the loss from such sales against other taxable gains.

Net Income or Loss from the Operation of a Business,

Profession, or Farm

As a nonresident, you must report your net profit (and pay the PA income

tax due) or loss on your net profits from business or farm operations. See

Page 17 of the instructions for more information.

Net Gain or Loss from the Sale, Exchange, or Disposition

of Property

As a nonresident, you must report net income (and pay the PA income

tax due) or loss from the sale of real or tangible property located within

Pennsylvania. See Pages 17 and 18 of the instructions for more

information.

Net Income or Loss from Rents, Royalties, Patents,

and Copyrights

As a nonresident, you must report your net income (and pay the PA

income tax due) or loss from rental property located in Pennsylvania, and

income from royalties, patents, and copyrights for the use of your property

in Pennsylvania. See Pages 18 and 19 of the instructions for more

information.

Income from Estates or Trusts

As a nonresident, you must report the net income (and pay the PA income

tax due) you receive as a beneficiary of an estate or trust as reported to

you on PA Schedule NRK-1. See Page 19 of the instructions for more

information.

Gambling and Lottery Winnings

As a nonresident, you must report your winnings from gambling and

lotteries in Pennsylvania, including cash prizes awarded by the

Pennsylvania Lottery. See Pages 19 and 20 of the instructions for more

information.

INSTRUCTIONS FOR NONRESIDENTS

AND PART-YEAR RESIDENTS

PA BREAST CANCER COALITION’S BREAST

AND CERVICAL CANCER RESEARCH FUND

You have the opportunity to contribute to the PA

Breast Cancer Coalition’s Refunds for Breast and

Cervical Cancer Research fund by making a

donation of all or a part of your tax refund. Every penny of your donation

goes directly to fund breast and cervical cancer research conducted by

Pennsylvania researchers.

You can also send a direct, tax-deductible contribution to: PBCC’s

Refunds for Research fund, c/o PA Breast Cancer Coalition, 2397 Quentin

Road, Suite B, Lebanon, PA 17042. For more information, visit

www.PABreastCancer.org or call 1-800-377-8828.

WILD RESOURCE CONSERVATION FUND

You have the chance to "Do Something Wild" and help

protect Pennsylvania's non-game wildlife and native

wild plants by making a contribution to the Wild

Resource Conservation Fund. This special nonprofit

fund helps Pennsylvania's resource agencies protect and restore these

unique state treasures.

You can also send a direct, tax-deductible contribution to: Wild Resource

Conservation Fund, PO Box 8552, Harrisburg, PA 17105-8552. For more

information, visit: www.dcnr.pa.gov/Conservation/Biodiversity/

WildResourceConservationProgram/Pages/default.aspx.

MILITARY FAMILY RELIEF ASSISTANCE PROGRAM

Help those who serve our Nation and the Commonwealth

of Pennsylvania by donating to the Military Family Relief

Assistance Program. Your donation will help

Pennsylvania service members and their families by

providing financial assistance to those with a direct and immediate

financial need as a result of circumstances beyond their control.

You can also send a direct, tax-deductible, donation to the Military Family

Relief Assistance Program, c/o Department of Military and Veterans

Affairs, Bldg. 9-26, Fort Indiantown Gap, Annville, PA 17003-5002.

Donations may also be made online at www.pa.gov/dmva/donate.

For more information visit: www.dmva.pa.gov or call, toll-free,

800-547-2838.

GOVERNOR ROBERT P. CASEY MEMORIAL ORGAN AND TISSUE

DONATION AWARENESS TRUST FUND

The Casey Trust Fund has one

overarching mission: to save lives. It was

established to heighten awareness about

the importance of organ and tissue donation, and inspire Pennsylvanians

to sign up as donors. Since its inception, more than 44,000 people in

Pennsylvania have received a life-saving organ transplant, including more

than 3,000 children.

There is more work to be done. Today, more than 7,500 people in

Pennsylvania are on the waiting list for an organ transplant. On average,

someone in Pennsylvania dies every 18 hours waiting for a transplant.

By contributing all or a portion of your tax refund, you’ll be supporting

education programs, public awareness campaigns and donor support

services — all with the goal of saving lives.

You can also send a direct, tax-deductible contribution by making your check

payable to the Governor Robert P. Casey Memorial Organ and Tissue

Donation Awareness Trust Fund c/o Pa. Department of Health, Bureau of

Administrative and Financial Services, Division of Budget, 625 Forster St.,

Room 832, Health and Welfare Building, Harrisburg, PA 17120-0701.

You can also make your tax-deductible contribution online by visiting:

https://apps.pa.egov.com/DOH.OrganTissueDonations.Web/. For

more information or to register as a donor, visit: www.donatelifepa.org

or www.facebook.com/DonateLifePennsylvania.

JUVENILE (TYPE 1) DIABETES CURE RESEARCH FUND

Each year, Type 1 diabetes accounts for

$14.9 billion in healthcare costs, and more

than 15,000 children and 15,000 adults —

approximately 80 people per day — are diagnosed with Type 1 diabetes

in the U.S. Type 1 diabetes is a condition where the body does not

produce insulin, the hormone needed to convert sugar (glucose), starches

and other food into energy needed for living. Although the disease can

be diagnosed at any age, it is most often diagnosed in children,

adolescents and young adults. The causes of Type 1 diabetes are

unknown, and there is currently no way to prevent or cure it. Persons with

Type 1 diabetes are dependent on injected or pumped insulin for life. You

have the opportunity to help find a cure for this disease by contributing

all or a portion of your Pennsylvania tax refund to the Juvenile (Type 1)

Diabetes Cure Research Fund.

You can also send a direct, tax-deductible contribution by making your

check or money order payable to the Juvenile (Type 1) Diabetes Cure

Research Fund and mailing it to: Department of Health, Health Research

Office, 625 Forster St., Health and Welfare Building, Room 833,

Harrisburg, PA 17120.

PA CHILDREN’S TRUST FUND

The Pennsylvania Children’s Trust Fund

(CTF) is dedicated to funding effective

and innovative child abuse and neglect

prevention programs that strengthen families by promoting protective

factors such as social connections, concrete supports, parenting and child

development and parental resilience that can prevent instances of child

maltreatment. While preventable, too many children experience

maltreatment and some even die because of child abuse and neglect

each year. The impact of maltreatment is profound with lifelong

consequences. Robust funding of prevention programs that offer supports

to families can strengthen and improve the lives of children and families.

Every citizen has a role to play in keeping Pennsylvania’s children safe

and families strong. You can contribute all or a portion of your

Pennsylvania tax refund to make it possible for CTF to fund more child

abuse and neglect prevention programs. For more information please

visit: http://www.pa-ctf.org.

AMERICAN RED CROSS

The American Red Cross shelters, feeds and

provides emotional support to victims of

disasters; supplies about 40 percent of the nation's blood; teaches skills

that save lives; provides international humanitarian aid; and supports

military members and their families. The Red Cross is a not-for-profit

organization that depends on volunteers and the generosity of the

American public to perform its mission. By donating some or all of your

tax refund, you help the Red Cross respond to nearly 70,000 disasters

each year. You can also make a direct, tax deductible donation by visiting

redcross.org.

44 www.revenue.pa.govPA-40

DONATIONS

45www.revenue.pa.gov PA-40

PENNSYLVANIA 529 COLLEGE AND CAREER SAVINGS

PROGRAM ACCOUNT

You may contribute some or all of your Pennsylvania

tax refund to an existing PA 529 Guaranteed Savings

Plan (GSP) or PA 529 Investment Plan (IP) account.

Both plans are simple, tax-advantaged ways to save for education. For

more information or to make additional contributions, please visit

PA529.com or call 800-440-4000.

PEDIATRIC CANCER RESEARCH FUND

Cancer is the leading cause of death by

disease past infancy among children in the

United States. About 10,500 children in the United States under the age

of 15 and about 5,090 teens age 15 to 19 will be diagnosed with cancer

in 2022. Childhood cancer rates have been rising slightly the past few

decades. Thanks to advances in research, 84 percent of children with

cancer now survive five years or more. There are six pediatric cancer

hospitals in Pennsylvania performing cutting edge research to develop

better treatments and methods to combat cancer in our children. You have

the opportunity to help find a cure for this disease by contributing all or a

portion of your Pennsylvania tax refund to the Pediatric Cancer Research

Fund, which provides funding to these research institutions.

You can also send a direct, tax-deductible contribution by making your

check or money order payable to the Pediatric Cancer Cure Research

Fund and mailing it to: Department of Health, Health Research Office,

625 Forster St., Health and Welfare Building, Room 833, Harrisburg, PA

17120.

VETERANS’ TRUST FUND

Help Pennsylvania’s veterans by making a contribution to

the Pennsylvania Veterans’ Trust Fund (VTF). The VTF

provides funding to assist and support Pennsylvania

veterans and their families. The VTF will issue grants to

statewide charitable organizations that assist veterans, veterans service

organizations and county directors of veterans affairs. The fund can assist

veterans in need of shelter and with necessities of living.

The VTF is funded by generous Pennsylvanians who voluntarily donate

when applying for or renewing driver’s licenses, photo IDs or motor vehicle

registrations, purchasing Honoring Our Veterans standard and motorcycle

license plate, purchasing Honoring our Women Veterans standard license

plate, or making private donations.

You can make a tax-deductible grant, gift or donation directly to the VTF.

You can also send a direct, tax-deductible, gift to the Veterans Trust Fund

online at www.pa.gov/dmva/donate. For more information, visit

www.dmva.pa.gov or call, toll-free, 800-547-2838.

46 www.revenue.pa.govPA-40

ADAMS

Bermudian Springs . . . . . . . . . . . . . .01110

Conewago Valley . . . . . . . . . . . . . . .01160

Fairfield Area . . . . . . . . . . . . . . . . . .01305

Gettysburg Area . . . . . . . . . . . . . . . .01375

Littlestown Area . . . . . . . . . . . . . . . .01520

Upper Adams . . . . . . . . . . . . . . . . . .01852

ALLEGHENY

Allegheny Valley . . . . . . . . . . . . . . . .02060

Avonworth . . . . . . . . . . . . . . . . . . . .02075

Baldwin Whitehall . . . . . . . . . . . . . . .02110

Bethel Park . . . . . . . . . . . . . . . . . . .02125

Brentwood Borough . . . . . . . . . . . . .02145

Carlynton . . . . . . . . . . . . . . . . . . . .02160

Chartiers Valley . . . . . . . . . . . . . . . .02175

Clairton City . . . . . . . . . . . . . . . . . . .02190

Cornell . . . . . . . . . . . . . . . . . . . . . . .02210

Deer Lakes . . . . . . . . . . . . . . . . . . .02225

Duquesne City . . . . . . . . . . . . . . . . .02250

East Allegheny . . . . . . . . . . . . . . . . .02280

Elizabeth Forward . . . . . . . . . . . . . .02315

Fort Cherry . . . . . . . . . . . . . . . . . . . .63240

Fox Chapel Area . . . . . . . . . . . . . . .02391

Gateway . . . . . . . . . . . . . . . . . . . . . .02410

Hampton Township . . . . . . . . . . . . .02460

Highlands . . . . . . . . . . . . . . . . . . . . .02475

Keystone Oaks . . . . . . . . . . . . . . . .02500

McKeesport Area . . . . . . . . . . . . . . .02600

Montour . . . . . . . . . . . . . . . . . . . . . .02630

Moon Area . . . . . . . . . . . . . . . . . . . .02634

Mount Lebanon . . . . . . . . . . . . . . . .02640

North Allegheny . . . . . . . . . . . . . . . .02685

Northgate . . . . . . . . . . . . . . . . . . . . .02687

North Hills . . . . . . . . . . . . . . . . . . . .02690

Penn Hills . . . . . . . . . . . . . . . . . . . . .02735

Penn-Trafford . . . . . . . . . . . . . . . . . .65710

Pine-Richland . . . . . . . . . . . . . . . . .02100

Pittsburgh . . . . . . . . . . . . . . . . . . . . .02745

Plum Borough . . . . . . . . . . . . . . . . .02750

Quaker Valley . . . . . . . . . . . . . . . . . .02775

Riverview . . . . . . . . . . . . . . . . . . . . .02820

Shaler Area . . . . . . . . . . . . . . . . . . .02830

South Allegheny . . . . . . . . . . . . . . . .02865

South Fayette Township . . . . . . . . . .02870

South Park . . . . . . . . . . . . . . . . . . . .02875

Steel Valley . . . . . . . . . . . . . . . . . . .02883

Sto-Rox . . . . . . . . . . . . . . . . . . . . . .02885

Upper Saint Clair Township . . . . . . .02920

West Allegheny . . . . . . . . . . . . . . . .02940

West Jefferson Hills . . . . . . . . . . . . .02955

West Mifflin Area . . . . . . . . . . . . . . .02960

Wilkinsburg Borough . . . . . . . . . . . .02980

Woodland Hills . . . . . . . . . . . . . . . . .02990

ARMSTRONG

Allegheny Clarion Valley . . . . . . . . .16030

Apollo-Ridge . . . . . . . . . . . . . . . . . .03060

Armstrong . . . . . . . . . . . . . . . . . . . .03085

Freeport Area . . . . . . . . . . . . . . . . . .03305

Karns City Area . . . . . . . . . . . . . . . .10360

Kiski Area . . . . . . . . . . . . . . . . . . . . .65440

Leechburg Area . . . . . . . . . . . . . . . .03450

Redbank Valley . . . . . . . . . . . . . . . .16800

BEAVER

Aliquippa Borough . . . . . . . . . . . . .04050

Ambridge Area . . . . . . . . . . . . . . . . .04070

Beaver Area . . . . . . . . . . . . . . . . . . .04120

Big Beaver Falls Area . . . . . . . . . . .04150

Blackhawk . . . . . . . . . . . . . . . . . . . .04160

Central Valley . . . . . . . . . . . . . . . . . .04200

Ellwood City Area . . . . . . . . . . . . . . .37200

Freedom Area . . . . . . . . . . . . . . . . .04285

Hopewell Area . . . . . . . . . . . . . . . . .04410

Midland Borough . . . . . . . . . . . . . . .04530

New Brighton Area . . . . . . . . . . . . . .04565

Riverside Beaver County . . . . . . . . .04585

Rochester Area . . . . . . . . . . . . . . . .04690

South Side Area . . . . . . . . . . . . . . . .04740

Western Beaver County . . . . . . . . . .04930

BEDFORD

Bedford Area . . . . . . . . . . . . . . . . . .05100

Chestnut Ridge . . . . . . . . . . . . . . . .05150

Claysburg-Kimmel . . . . . . . . . . . . . .07150

Everett Area . . . . . . . . . . . . . . . . . . .05300

Northern Bedford County . . . . . . . . .05600

Tussey Mountain . . . . . . . . . . . . . . .05800

SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE

Palmerton Area . . . . . . . . . . . . . . . .13650

Panther Valley . . . . . . . . . . . . . . . . .13660

Weatherly Area . . . . . . . . . . . . . . . .13900

CENTRE

Bald Eagle Area . . . . . . . . . . . . . . . .14100

Bellefonte Area . . . . . . . . . . . . . . . . .14110

Keystone Central . . . . . . . . . . . . . . .18360

Penns Valley Area . . . . . . . . . . . . . .14700

Philipsburg-Osceola Area . . . . . . . .17700

State College Area . . . . . . . . . . . . . .14800

Tyrone Area . . . . . . . . . . . . . . . . . . .07800

CHESTER

Avon Grove . . . . . . . . . . . . . . . . . . .15050

Coatesville Area . . . . . . . . . . . . . . . .15190

Downingtown Area . . . . . . . . . . . . . .15200

Great Valley . . . . . . . . . . . . . . . . . . .15350

Kennett Consolidated . . . . . . . . . . .15400

Octorara Area . . . . . . . . . . . . . . . . .15650

Owen J. Roberts . . . . . . . . . . . . . . .15660

Oxford Area . . . . . . . . . . . . . . . . . . .15670

Phoenixville Area . . . . . . . . . . . . . . .15720

Spring-Ford Area . . . . . . . . . . . . . . .46730

Tredyffrin Easttown . . . . . . . . . . . . .15780

Twin Valley . . . . . . . . . . . . . . . . . . . .06810

Unionville-Chadds Ford . . . . . . . . . .15850

West Chester Area . . . . . . . . . . . . . .15900

CLARION

Allegheny Clarion Valley . . . . . . . . .16030

Armstrong . . . . . . . . . . . . . . . . . . . .03085

Clarion Area . . . . . . . . . . . . . . . . . . .16120

Clarion-Limestone Area . . . . . . . . . .16170

Keystone . . . . . . . . . . . . . . . . . . . . .16650

North Clarion County . . . . . . . . . . . .16750

Redbank Valley . . . . . . . . . . . . . . . .16800

Union . . . . . . . . . . . . . . . . . . . . . . . .16900

CLEARFIELD

Clearfield Area . . . . . . . . . . . . . . . . .17100

Curwensville Area . . . . . . . . . . . . . .17180

Dubois Area . . . . . . . . . . . . . . . . . . .17200

Glendale . . . . . . . . . . . . . . . . . . . . .17300

Harmony Area . . . . . . . . . . . . . . . . .17350

Moshannon Valley . . . . . . . . . . . . . .17500

Philipsburg-Osceola Area . . . . . . . .17700

Purchase Line . . . . . . . . . . . . . . . . .32730

West Branch Area . . . . . . . . . . . . . .17900

CLINTON

Jersey Shore Area . . . . . . . . . . . . . .41400

Keystone Central . . . . . . . . . . . . . . .18360

West Branch Area . . . . . . . . . . . . . .17900

COLUMBIA

Benton Area . . . . . . . . . . . . . . . . . . .19100

Berwick Area . . . . . . . . . . . . . . . . . .19110

Bloomsburg Area . . . . . . . . . . . . . . .19120

Central Columbia . . . . . . . . . . . . . . .19150

Millville Area . . . . . . . . . . . . . . . . . . .19500

Mount Carmel Area . . . . . . . . . . . . .49510

North Schuylkill . . . . . . . . . . . . . . . .54500

Southern Columbia Area . . . . . . . . .19750

CRAWFORD

Conneaut . . . . . . . . . . . . . . . . . . . . .20103

Corry Area . . . . . . . . . . . . . . . . . . . .25145

Crawford Central . . . . . . . . . . . . . . .20135

Jamestown Area . . . . . . . . . . . . . . .43360

Penncrest . . . . . . . . . . . . . . . . . . . . .20470

Titusville Area . . . . . . . . . . . . . . . . . .61720

Union City Area . . . . . . . . . . . . . . . .25910

CUMBERLAND

Big Spring . . . . . . . . . . . . . . . . . . . .21050

Camp Hill . . . . . . . . . . . . . . . . . . . . .21100

Carlisle Area . . . . . . . . . . . . . . . . . . .21110

Cumberland Valley . . . . . . . . . . . . . .21160

East Pennsboro Area . . . . . . . . . . . .21250

Mechanicsburg Area . . . . . . . . . . . .21650

Shippensburg Area . . . . . . . . . . . . .21800

South Middleton . . . . . . . . . . . . . . . .21830

West Shore . . . . . . . . . . . . . . . . . . .21900

DAUPHIN

Central Dauphin . . . . . . . . . . . . . . . .22140

Derry Township . . . . . . . . . . . . . . . .22175

Halifax Area . . . . . . . . . . . . . . . . . . .22250

Harrisburg City . . . . . . . . . . . . . . . . .22275

Lower Dauphin . . . . . . . . . . . . . . . . .22400

Middletown Area . . . . . . . . . . . . . . .22600

Millersburg Area . . . . . . . . . . . . . . . .22610

Steelton Highspire . . . . . . . . . . . . . .22800

Susquehanna Township . . . . . . . . . .22830

Susquenita . . . . . . . . . . . . . . . . . . . .50600

Upper Dauphin Area . . . . . . . . . . . .22900

Williams Valley . . . . . . . . . . . . . . . . .54880

DELAWARE

Chester Upland . . . . . . . . . . . . . . . .23123

Chichester . . . . . . . . . . . . . . . . . . . .23130

Garnet Valley . . . . . . . . . . . . . . . . . .23410

Haverford Township . . . . . . . . . . . . .23450

Interboro . . . . . . . . . . . . . . . . . . . . .23510

Marple Newtown . . . . . . . . . . . . . . .23550

Penn-Delco . . . . . . . . . . . . . . . . . . .23690

Radnor Township . . . . . . . . . . . . . . .23760

Ridley . . . . . . . . . . . . . . . . . . . . . . . .23770

Rose Tree Media . . . . . . . . . . . . . . .23790

Southeast Delco . . . . . . . . . . . . . . .23840

Springfield . . . . . . . . . . . . . . . . . . . .23850

Unionville-Chadds Ford . . . . . . . . . .15850

Upper Darby . . . . . . . . . . . . . . . . . .23945

Wallingford Swarthmore . . . . . . . . . .23960

West Chester Area . . . . . . . . . . . . . .15900

William Penn . . . . . . . . . . . . . . . . . .23965

ELK

Brockway Area . . . . . . . . . . . . . . . . .33070

Forest Area . . . . . . . . . . . . . . . . . . .27200

Johnsonburg Area . . . . . . . . . . . . . .24350

Kane Area . . . . . . . . . . . . . . . . . . . .42230

Ridgway Area . . . . . . . . . . . . . . . . . .24600

Saint Marys Area . . . . . . . . . . . . . . .24800

ERIE

Corry Area . . . . . . . . . . . . . . . . . . . .25145

Erie City . . . . . . . . . . . . . . . . . . . . . .25260

Fairview . . . . . . . . . . . . . . . . . . . . . .25330

Fort Leboeuf . . . . . . . . . . . . . . . . . .25355

General McLane . . . . . . . . . . . . . . .25390

Girard . . . . . . . . . . . . . . . . . . . . . . . .25405

Harbor Creek . . . . . . . . . . . . . . . . . .25435

Iroquois . . . . . . . . . . . . . . . . . . . . . .25655

Millcreek Township . . . . . . . . . . . . . .25760

North East . . . . . . . . . . . . . . . . . . . .25830

Northwestern . . . . . . . . . . . . . . . . . .25850

Union City Area . . . . . . . . . . . . . . . .25910

Wattsburg Area . . . . . . . . . . . . . . . .25970

FAYETTE

Albert Gallatin Area . . . . . . . . . . . . .26030

Belle Vernon Area . . . . . . . . . . . . . .65060

Brownsville Area . . . . . . . . . . . . . . .26080

Connellsville Area . . . . . . . . . . . . . .26130

Frazier . . . . . . . . . . . . . . . . . . . . . . .26290

Laurel Highlands . . . . . . . . . . . . . . .26400

Southmoreland . . . . . . . . . . . . . . . .65750

Uniontown Area . . . . . . . . . . . . . . . .26800

FOREST

Forest Area . . . . . . . . . . . . . . . . . . .27200

FRANKLIN

Chambersburg Area . . . . . . . . . . . . .28130

Fannett-Metal . . . . . . . . . . . . . . . . . .28200

Greencastle-Antrim . . . . . . . . . . . . .28300

Shippensburg Area . . . . . . . . . . . . .21800

Tuscarora . . . . . . . . . . . . . . . . . . . . .28600

Waynesboro Area . . . . . . . . . . . . . .28900

FULTON

Central Fulton . . . . . . . . . . . . . . . . .29130

Forbes Road . . . . . . . . . . . . . . . . . .29230

Southern Fulton . . . . . . . . . . . . . . . .29750

GREENE

Carmichaels Area . . . . . . . . . . . . . .30130

Central Greene . . . . . . . . . . . . . . . .30140

Jefferson-Morgan . . . . . . . . . . . . . . .30350

Southeastern Greene . . . . . . . . . . .30650

West Greene . . . . . . . . . . . . . . . . . .30850

HUNTINGDON

Huntingdon Area . . . . . . . . . . . . . . .31250

Juniata Valley . . . . . . . . . . . . . . . . . .31280

Mount Union Area . . . . . . . . . . . . . .31600

Southern Huntingdon County . . . . .31750

Tussey Mountain . . . . . . . . . . . . . . .05800

Tyrone Area . . . . . . . . . . . . . . . . . . .07800

BERKS

Antietam . . . . . . . . . . . . . . . . . . . . . .06050

Boyertown Area . . . . . . . . . . . . . . . .06075

Brandywine Heights Area . . . . . . . .06085

Conrad Weiser Area . . . . . . . . . . . . .06110

Daniel Boone Area . . . . . . . . . . . . . .06150

Exeter Township . . . . . . . . . . . . . . . .06200

Fleetwood Area . . . . . . . . . . . . . . . .06250

Governor Mifflin . . . . . . . . . . . . . . . .06300

Hamburg Area . . . . . . . . . . . . . . . . .06350

Kutztown Area . . . . . . . . . . . . . . . . .06400

Muhlenberg Township . . . . . . . . . . .06550

Oley Valley . . . . . . . . . . . . . . . . . . . .06650

Reading . . . . . . . . . . . . . . . . . . . . . .06700

Schuylkill Valley . . . . . . . . . . . . . . . .06750

Tulpehocken Area . . . . . . . . . . . . . .06800

Twin Valley . . . . . . . . . . . . . . . . . . . .06810

Upper Perkiomen . . . . . . . . . . . . . . .46860

Wilson . . . . . . . . . . . . . . . . . . . . . . .06910

Wyomissing . . . . . . . . . . . . . . . . . . .06935

BLAIR

Altoona Area . . . . . . . . . . . . . . . . . .07050

Bellwood Antis . . . . . . . . . . . . . . . . .07100

Claysburg-Kimmel . . . . . . . . . . . . . .07150

Hollidaysburg Area . . . . . . . . . . . . . .07350

Spring Cove . . . . . . . . . . . . . . . . . . .07750

Tyrone Area . . . . . . . . . . . . . . . . . . .07800

Williamsburg Community . . . . . . . . .07900

BRADFORD

Athens Area . . . . . . . . . . . . . . . . . . .08050

Canton Area . . . . . . . . . . . . . . . . . . .08100

Northeast Bradford County . . . . . . .08300

Sayre Area . . . . . . . . . . . . . . . . . . . .08600

Towanda Area . . . . . . . . . . . . . . . . .08650

Troy Area . . . . . . . . . . . . . . . . . . . . .08665

Wyalusing Area . . . . . . . . . . . . . . . .08900

BUCKS

Bensalem Township . . . . . . . . . . . . .09100

Bristol Borough . . . . . . . . . . . . . . . .09130

Bristol Township . . . . . . . . . . . . . . . .09135

Centennial . . . . . . . . . . . . . . . . . . . .09200

Central Bucks . . . . . . . . . . . . . . . . .09210

Council Rock . . . . . . . . . . . . . . . . . .09235

Easton Area . . . . . . . . . . . . . . . . . . .48330

Morrisville Borough . . . . . . . . . . . . .09720

Neshaminy . . . . . . . . . . . . . . . . . . . .09750

New Hope Solebury . . . . . . . . . . . . .09760

North Penn . . . . . . . . . . . . . . . . . . . .46570

Palisades . . . . . . . . . . . . . . . . . . . . .09800

Pennridge . . . . . . . . . . . . . . . . . . . .09810

Pennsbury . . . . . . . . . . . . . . . . . . . .09820

Quakertown Community . . . . . . . . .09840

Souderton Area . . . . . . . . . . . . . . . .46710

BUTLER

Allegheny Clarion Valley . . . . . . . . .16030

Butler Area . . . . . . . . . . . . . . . . . . . .10125

Freeport Area . . . . . . . . . . . . . . . . . .03305

Karns City Area . . . . . . . . . . . . . . . .10360

Mars Area . . . . . . . . . . . . . . . . . . . .10500

Moniteau . . . . . . . . . . . . . . . . . . . . .10535

Seneca Valley . . . . . . . . . . . . . . . . .10790

Slippery Rock Area . . . . . . . . . . . . .10750

South Butler County . . . . . . . . . . . . .10780

CAMBRIA

Blacklick Valley . . . . . . . . . . . . . . . . .11060

Cambria Heights . . . . . . . . . . . . . . . .11120

Central Cambria . . . . . . . . . . . . . . . .11130

Conemaugh Valley . . . . . . . . . . . . . .11140

Ferndale Area . . . . . . . . . . . . . . . . . .11200

Forest Hills . . . . . . . . . . . . . . . . . . . .11220

Glendale . . . . . . . . . . . . . . . . . . . . .17300

Greater Johnstown . . . . . . . . . . . . . .11250

Northern Cambria . . . . . . . . . . . . . . .11450

Penn Cambria . . . . . . . . . . . . . . . . .11600

Portage Area . . . . . . . . . . . . . . . . . .11630

Richland . . . . . . . . . . . . . . . . . . . . . .11650

Westmont Hilltop . . . . . . . . . . . . . . .11850

Windber Area . . . . . . . . . . . . . . . . . .56910

CAMERON

Cameron County . . . . . . . . . . . . . . .12270

CARBON

Hazleton Area . . . . . . . . . . . . . . . . .40330

Jim Thorpe Area . . . . . . . . . . . . . . . .13500

Lehighton Area . . . . . . . . . . . . . . . . .13550

PA SCHOOL DISTRICTS & CODES BY COUNTY

47www.revenue.pa.gov PA-40

UNION

Lewisburg Area . . . . . . . . . . . . . . . .60400

Mifflinburg Area . . . . . . . . . . . . . . . .60500

Milton Area . . . . . . . . . . . . . . . . . . . .49500

Warrior Run . . . . . . . . . . . . . . . . . . .49800

VENANGO

Allegheny Clarion Valley . . . . . . . . .16030

Cranberry Area . . . . . . . . . . . . . . . . .61130

Forest Area . . . . . . . . . . . . . . . . . . .27200

Franklin Area . . . . . . . . . . . . . . . . . .61220

Oil City Area . . . . . . . . . . . . . . . . . . .61620

Penncrest . . . . . . . . . . . . . . . . . . . . .20470

Titusville Area . . . . . . . . . . . . . . . . . .61720

Valley Grove . . . . . . . . . . . . . . . . . . .61860

WARREN

Corry Area . . . . . . . . . . . . . . . . . . . .25145

Titusville Area . . . . . . . . . . . . . . . . . .61720

Warren County . . . . . . . . . . . . . . . . .62830

WASHINGTON

Avella Area . . . . . . . . . . . . . . . . . . . .63050

Bentworth . . . . . . . . . . . . . . . . . . . . .63090

Bethlehem-Center . . . . . . . . . . . . . .63100

Brownsville Area . . . . . . . . . . . . . . .26080

Burgettstown Area . . . . . . . . . . . . . .63120

California Area . . . . . . . . . . . . . . . . .63150

Canon-McMillan . . . . . . . . . . . . . . . .63170

Charleroi . . . . . . . . . . . . . . . . . . . . .63180

Chartiers-Houston . . . . . . . . . . . . . .63190

Fort Cherry . . . . . . . . . . . . . . . . . . . .63240

McGuffey . . . . . . . . . . . . . . . . . . . . .63390

Peters Township . . . . . . . . . . . . . . . .63650

Ringgold . . . . . . . . . . . . . . . . . . . . . .63700

Trinity Area . . . . . . . . . . . . . . . . . . . .63800

Washington . . . . . . . . . . . . . . . . . . .63880

WAYNE

Forest City Regional . . . . . . . . . . . .58300

North Pocono . . . . . . . . . . . . . . . . . .35650

Susquehanna Community . . . . . . . .58650

Wallenpaupack Area . . . . . . . . . . . .64830

Wayne Highlands . . . . . . . . . . . . . . .64870

Western Wayne . . . . . . . . . . . . . . . .64890

WESTMORELAND

Belle Vernon Area . . . . . . . . . . . . . .65060

Blairsville-Saltsburg . . . . . . . . . . . . .32110

Burrell . . . . . . . . . . . . . . . . . . . . . . .65070

Derry Area . . . . . . . . . . . . . . . . . . . .65160

Franklin Regional . . . . . . . . . . . . . . .65260

Greater Latrobe . . . . . . . . . . . . . . . .65310

Greensburg Salem . . . . . . . . . . . . . .65320

Hempfield Area . . . . . . . . . . . . . . . .65380

Jeannette City . . . . . . . . . . . . . . . . .65410

Kiski Area . . . . . . . . . . . . . . . . . . . . .65440

Leechburg Area . . . . . . . . . . . . . . . .03450

Ligonier Valley . . . . . . . . . . . . . . . . .65490

Monessen City . . . . . . . . . . . . . . . . .65580

Mount Pleasant Area . . . . . . . . . . . .65590

New Kensington-Arnold . . . . . . . . . .65630

Norwin . . . . . . . . . . . . . . . . . . . . . . .65650

Penn-Trafford . . . . . . . . . . . . . . . . . .65710

Southmoreland . . . . . . . . . . . . . . . .65750

Yough . . . . . . . . . . . . . . . . . . . . . . . .65890

WYOMING

Elk Lake . . . . . . . . . . . . . . . . . . . . . .58250

Lackawanna Trail . . . . . . . . . . . . . . .66500

Lake-Lehman . . . . . . . . . . . . . . . . . .40390

Tunkhannock Area . . . . . . . . . . . . . .66750

Wyalusing Area . . . . . . . . . . . . . . . .08900

Wyoming Area . . . . . . . . . . . . . . . . .40920

YORK

Central York . . . . . . . . . . . . . . . . . . .67130

Dallastown Area . . . . . . . . . . . . . . . .67160

Dover Area . . . . . . . . . . . . . . . . . . . .67180

Eastern York . . . . . . . . . . . . . . . . . .67220

Hanover Public . . . . . . . . . . . . . . . .67280

Northeastern . . . . . . . . . . . . . . . . . .67440

Northern York County . . . . . . . . . . .67460

Red Lion Area . . . . . . . . . . . . . . . . .67550

South Eastern . . . . . . . . . . . . . . . . .67620

South Western . . . . . . . . . . . . . . . . .67640

Southern York County . . . . . . . . . . .67650

Spring Grove Area . . . . . . . . . . . . . .67670

West Shore . . . . . . . . . . . . . . . . . . .21900

West York Area . . . . . . . . . . . . . . . .67850

York City . . . . . . . . . . . . . . . . . . . . . .67900

York Suburban . . . . . . . . . . . . . . . . .67940

SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE SCHOOL DISTRICT CODE

INDIANA

Apollo-Ridge . . . . . . . . . . . . . . . . . .03060

Armstrong . . . . . . . . . . . . . . . . . . . .03085

Blairsville-Saltsburg . . . . . . . . . . . . .32110

Harmony Area . . . . . . . . . . . . . . . . .17350

Homer Center . . . . . . . . . . . . . . . . .32330

Indiana Area . . . . . . . . . . . . . . . . . . .32370

Marion Center Area . . . . . . . . . . . . .32520

Penns Manor Area . . . . . . . . . . . . . .32630

Punxsutawney Area . . . . . . . . . . . . .33800

Purchase Line . . . . . . . . . . . . . . . . .32730

United . . . . . . . . . . . . . . . . . . . . . . .32800

JEFFERSON

Brockway Area . . . . . . . . . . . . . . . . .33070

Brookville Area . . . . . . . . . . . . . . . . .33080

Clarion-Limestone Area . . . . . . . . . .16170

Dubois Area . . . . . . . . . . . . . . . . . . .17200

Punxsutawney Area . . . . . . . . . . . . .33800

JUNIATA

Greenwood . . . . . . . . . . . . . . . . . . .50300

Juniata County . . . . . . . . . . . . . . . . .34360

LACKAWANNA

Abington Heights . . . . . . . . . . . . . . .35030

Carbondale Area . . . . . . . . . . . . . . .35130

Dunmore . . . . . . . . . . . . . . . . . . . . .35220

Forest City Regional . . . . . . . . . . . .58300

Lackawanna Trail . . . . . . . . . . . . . . .66500

Lakeland . . . . . . . . . . . . . . . . . . . . .35460

Mid Valley . . . . . . . . . . . . . . . . . . . . .35550

North Pocono . . . . . . . . . . . . . . . . . .35650

Old Forge . . . . . . . . . . . . . . . . . . . . .35660

Riverside . . . . . . . . . . . . . . . . . . . . .35700

Scranton City . . . . . . . . . . . . . . . . . .35740

Valley View . . . . . . . . . . . . . . . . . . . .35840

LANCASTER

Cocalico . . . . . . . . . . . . . . . . . . . . . .36130

Columbia Borough . . . . . . . . . . . . . .36150

Conestoga Valley . . . . . . . . . . . . . . .36170

Donegal . . . . . . . . . . . . . . . . . . . . . .36220

Eastern Lancaster County . . . . . . . .36230

Elizabethtown Area . . . . . . . . . . . . .36240

Ephrata Area . . . . . . . . . . . . . . . . . .36260

Hempfield . . . . . . . . . . . . . . . . . . . . .36310

Lampeter-Strasburg . . . . . . . . . . . . .36360

Lancaster . . . . . . . . . . . . . . . . . . . . .36400

Manheim Central . . . . . . . . . . . . . . .36440

Manheim Township . . . . . . . . . . . . .36450

Octorara Area . . . . . . . . . . . . . . . . .15650

Penn Manor . . . . . . . . . . . . . . . . . . .36520

Pequea Valley . . . . . . . . . . . . . . . . .36530

Solanco . . . . . . . . . . . . . . . . . . . . . .36700

Warwick . . . . . . . . . . . . . . . . . . . . . .36900

LAWRENCE

Blackhawk . . . . . . . . . . . . . . . . . . . .04160

Ellwood City Area . . . . . . . . . . . . . . .37200

Laurel . . . . . . . . . . . . . . . . . . . . . . . .37400

Mohawk Area . . . . . . . . . . . . . . . . . .37500

Neshannock Township . . . . . . . . . . .37520

New Castle Area . . . . . . . . . . . . . . .37530

Shenango Area . . . . . . . . . . . . . . . .37620

Union Area . . . . . . . . . . . . . . . . . . . .37700

Wilmington Area . . . . . . . . . . . . . . . .37800

LEBANON

Annville-Cleona . . . . . . . . . . . . . . . .38030

Cornwall-Lebanon . . . . . . . . . . . . . .38130

Eastern Lebanon County . . . . . . . . .38230

Lebanon . . . . . . . . . . . . . . . . . . . . . .38460

Northern Lebanon . . . . . . . . . . . . . .38500

Palmyra Area . . . . . . . . . . . . . . . . . .38530

LEHIGH

Allentown City . . . . . . . . . . . . . . . . .39030

Bethlehem Area . . . . . . . . . . . . . . . .48100

Catasauqua Area . . . . . . . . . . . . . . .39130

East Penn . . . . . . . . . . . . . . . . . . . .39230

Northern Lehigh . . . . . . . . . . . . . . . .39450

Northwestern Lehigh . . . . . . . . . . . .39460

Parkland . . . . . . . . . . . . . . . . . . . . . .39510

Salisbury Township . . . . . . . . . . . . .39560

Southern Lehigh . . . . . . . . . . . . . . .39570

Whitehall-Coplay . . . . . . . . . . . . . . .39780

LUZERNE

Berwick Area . . . . . . . . . . . . . . . . . .19110

Crestwood . . . . . . . . . . . . . . . . . . . .40140

Dallas . . . . . . . . . . . . . . . . . . . . . . . .40160

Greater Nanticoke Area . . . . . . . . . .40260

Hanover Area . . . . . . . . . . . . . . . . . .40300

Hazleton Area . . . . . . . . . . . . . . . . .40330

Lake-Lehman . . . . . . . . . . . . . . . . . .40390

Northwest Area . . . . . . . . . . . . . . . .40600

Pittston Area . . . . . . . . . . . . . . . . . .40660

Wilkes-Barre Area . . . . . . . . . . . . . .40885

Wyoming Area . . . . . . . . . . . . . . . . .40920

Wyoming Valley West . . . . . . . . . . .40930

LYCOMING

Canton Area . . . . . . . . . . . . . . . . . . .08100

East Lycoming . . . . . . . . . . . . . . . . .41200

Jersey Shore Area . . . . . . . . . . . . . .41400

Loyalsock Township . . . . . . . . . . . . .41420

Montgomery Area . . . . . . . . . . . . . .41500

Montoursville Area . . . . . . . . . . . . . .41510

Muncy . . . . . . . . . . . . . . . . . . . . . . .41530

South Williamsport Area . . . . . . . . .41610

Southern Tioga . . . . . . . . . . . . . . . .59700

Wellsboro Area . . . . . . . . . . . . . . . . .59850

Williamsport Area . . . . . . . . . . . . . . .41720

MCKEAN

Bradford Area . . . . . . . . . . . . . . . . . .42080

Kane Area . . . . . . . . . . . . . . . . . . . .42230

Oswayo Valley . . . . . . . . . . . . . . . . .53750

Otto-Eldred . . . . . . . . . . . . . . . . . . .42600

Port Allegany . . . . . . . . . . . . . . . . . .42630

Smethport Area . . . . . . . . . . . . . . . .42750

MERCER

Commodore Perry . . . . . . . . . . . . . .43130

Crawford Central . . . . . . . . . . . . . . .20135

Farrell Area . . . . . . . . . . . . . . . . . . .43250

Greenville Area . . . . . . . . . . . . . . . .43280

Grove City Area . . . . . . . . . . . . . . . .43290

Hermitage . . . . . . . . . . . . . . . . . . . .43330

Jamestown Area . . . . . . . . . . . . . . .43360

Lakeview . . . . . . . . . . . . . . . . . . . . .43390

Mercer Area . . . . . . . . . . . . . . . . . . .43500

Reynolds . . . . . . . . . . . . . . . . . . . . .43530

Sharon City . . . . . . . . . . . . . . . . . . .43560

Sharpsville Area . . . . . . . . . . . . . . . .43570

West Middlesex Area . . . . . . . . . . . .43750

Wilmington Area . . . . . . . . . . . . . . . .37800

MIFFLIN

Mifflin County . . . . . . . . . . . . . . . . . .44460

Mount Union Area . . . . . . . . . . . . . .31600

MONROE

East Stroudsburg Area . . . . . . . . . . .45200

Pleasant Valley . . . . . . . . . . . . . . . .45520

Pocono Mountain . . . . . . . . . . . . . . .45540

Stroudsburg Area . . . . . . . . . . . . . . .45600

MONTGOMERY

Abington . . . . . . . . . . . . . . . . . . . . . .46030

Boyertown Area . . . . . . . . . . . . . . . .06075

Bryn Athyn Borough . . . . . . . . . . . .46050

Cheltenham Township . . . . . . . . . . .46130

Colonial . . . . . . . . . . . . . . . . . . . . . .46160

Hatboro-Horsham . . . . . . . . . . . . . .46360

Jenkintown . . . . . . . . . . . . . . . . . . . .46380

Lower Merion . . . . . . . . . . . . . . . . . .46450

Lower Moreland Township . . . . . . . .46460

Methacton . . . . . . . . . . . . . . . . . . . .46530

Norristown Area . . . . . . . . . . . . . . . .46560

North Penn . . . . . . . . . . . . . . . . . . . .46570

Perkiomen Valley . . . . . . . . . . . . . . .46610

Pottsgrove . . . . . . . . . . . . . . . . . . . .46630

Pottstown . . . . . . . . . . . . . . . . . . . . .46640

Souderton Area . . . . . . . . . . . . . . . .46710

Springfield Township . . . . . . . . . . . .46720

Spring-Ford Area . . . . . . . . . . . . . . .46730

Upper Dublin . . . . . . . . . . . . . . . . . .46830

Upper Merion Area . . . . . . . . . . . . . .46840

Upper Moreland Township . . . . . . . .46850

Upper Perkiomen . . . . . . . . . . . . . . .46860

Wissahickon . . . . . . . . . . . . . . . . . . .46930

MONTOUR

Danville Area . . . . . . . . . . . . . . . . . .47180

Warrior Run . . . . . . . . . . . . . . . . . . .49800

NORTHAMPTON

Bangor Area . . . . . . . . . . . . . . . . . . .48080

Bethlehem Area . . . . . . . . . . . . . . . .48100

Catasauqua Area . . . . . . . . . . . . . . .39130

Easton Area . . . . . . . . . . . . . . . . . . .48330

Nazareth Area . . . . . . . . . . . . . . . . .48480

Northampton Area . . . . . . . . . . . . . .48490

Northern Lehigh . . . . . . . . . . . . . . . .39450

Pen Argyl Area . . . . . . . . . . . . . . . . .48560

Saucon Valley . . . . . . . . . . . . . . . . .48600

Wilson Area . . . . . . . . . . . . . . . . . . .48860

NORTHUMBERLAND

Danville Area . . . . . . . . . . . . . . . . . .47180

Line Mountain . . . . . . . . . . . . . . . . .49350

Milton Area . . . . . . . . . . . . . . . . . . . .49500

Mount Carmel Area . . . . . . . . . . . . .49510

Shamokin Area . . . . . . . . . . . . . . . .49650

Shikellamy . . . . . . . . . . . . . . . . . . . .49660

Southern Columbia Area . . . . . . . . .19750

Warrior Run . . . . . . . . . . . . . . . . . . .49800

PERRY

Fannett-Metal . . . . . . . . . . . . . . . . . .28200

Greenwood . . . . . . . . . . . . . . . . . . .50300

Newport . . . . . . . . . . . . . . . . . . . . . .50400

Susquenita . . . . . . . . . . . . . . . . . . . .50600

West Perry . . . . . . . . . . . . . . . . . . . .50800

PHILADELPHIA

Philadelphia City . . . . . . . . . . . . . . .51500

PIKE

Delaware Valley . . . . . . . . . . . . . . . .52200

East Stroudsburg Area . . . . . . . . . . .45200

Wallenpaupack Area . . . . . . . . . . . .64830

POTTER

Austin Area . . . . . . . . . . . . . . . . . . .53030

Coudersport Area . . . . . . . . . . . . . . .53130

Galeton Area . . . . . . . . . . . . . . . . . .53280

Keystone Central . . . . . . . . . . . . . . .18360

Northern Potter . . . . . . . . . . . . . . . .53550

Oswayo Valley . . . . . . . . . . . . . . . . .53750

Port Allegany . . . . . . . . . . . . . . . . . .42630

SCHUYLKILL

Blue Mountain . . . . . . . . . . . . . . . . .54080

Hazleton Area . . . . . . . . . . . . . . . . .40330

Mahanoy Area . . . . . . . . . . . . . . . . .54450

Minersville Area . . . . . . . . . . . . . . . .54470

North Schuylkill . . . . . . . . . . . . . . . .54500

Panther Valley . . . . . . . . . . . . . . . . .13660

Pine Grove Area . . . . . . . . . . . . . . .54600

Pottsville Area . . . . . . . . . . . . . . . . .54610

Saint Clair Area . . . . . . . . . . . . . . . .54680

Shenandoah Valley . . . . . . . . . . . . .54720

Schuylkill Haven Area . . . . . . . . . . .54730

Tamaqua Area . . . . . . . . . . . . . . . . .54760

Tri-Valley . . . . . . . . . . . . . . . . . . . . .54780

Williams Valley . . . . . . . . . . . . . . . . .54880

SNYDER

Midd-West . . . . . . . . . . . . . . . . . . . .55500

Selinsgrove Area . . . . . . . . . . . . . . .55710

SOMERSET

Berlin Brothersvalley . . . . . . . . . . . .56100

Conemaugh Township Area . . . . . . .56180

Meyersdale Area . . . . . . . . . . . . . . .56520

North Star . . . . . . . . . . . . . . . . . . . .56550

Rockwood Area . . . . . . . . . . . . . . . .56630

Salisbury-Elk Lick . . . . . . . . . . . . . .56700

Shade-Central City . . . . . . . . . . . . .56720

Shanksville-Stonycreek . . . . . . . . . .56740

Somerset Area . . . . . . . . . . . . . . . . .56770

Turkeyfoot Valley Area . . . . . . . . . . .56840

Windber Area . . . . . . . . . . . . . . . . . .56910

SULLIVAN

Sullivan County . . . . . . . . . . . . . . . .57630

SUSQUEHANNA

Blue Ridge . . . . . . . . . . . . . . . . . . . .58100

Elk Lake . . . . . . . . . . . . . . . . . . . . . .58250

Forest City Regional . . . . . . . . . . . .58300

Montrose Area . . . . . . . . . . . . . . . . .58450

Mountain View . . . . . . . . . . . . . . . . .58460

Susquehanna Community . . . . . . . .58650

TIOGA

Canton Area . . . . . . . . . . . . . . . . . . .08100

Galeton Area . . . . . . . . . . . . . . . . . .53280

Northern Tioga . . . . . . . . . . . . . . . . .59600

Southern Tioga . . . . . . . . . . . . . . . .59700

Wellsboro Area . . . . . . . . . . . . . . . . .59850

PA SCHOOL DISTRICTS & CODES BY COUNTY

48 www.revenue.pa.govPA-40

2022 Estimated Installment Payments Line 15 . . 21

Adjusted PA Taxable Income Line 11 . . . . . . . . . . 21

Amended Returns . . . . . . . . . . . . . . . . . . . . . . . . . 42

American Red Cross . . . . . . . . . . . . . . . . . . . 24 & 44

Annuities, Life Insurance Or

Endowment Contracts . . . . . . . . . . . . . . . . . . 14 & 15

Assembling Your PA-40 . . . . . . . . . . . . . . . . . . . . . . 4

Business Travel Expenses . . . . . . . . . . . . . . . . . . 28

Capital Gains Distributions . . . . . . . . . . . . . . . . . . 15

Combat Zone And Hazardous Duty Service . . . . . . 41

Credit/Debit Card Payment Options . . . . . . . . . . . 25

Credit From Your 2021 PA Tax Return Line 14 . . . 21

Credit To 2023 Estimated Tax Account Line 31 . . . 24

Customer Experience Center . . . . . . . . . . . . . . . . . 2

Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Dependent Children . . . . . . . . . . . . . . . . . . . . . . . 38

Depreciation - Differences Between

PA PIT And IRS Rules . . . . . . . . . . . . . . . . . . . . . . 9

Distributions: Eligible Employer-Sponsored

Retirement Or Deferred Compensation Programs 11 & 12

Distributions - Form 1099-R . . . . . . . . . . 12, 13 & 14

Dividends And Capital Gains Distributions

From Mutual Funds Line 3 . . . . . . . . . . . . . . . . . . 15

Early Retirement Incentive Plans . . . . . . . . . . . . . 12

Easements And Right of Ways . . . . . . . . . . . . . . . 33

Education Expenses . . . . . . . . . . . . . . . . . . 29 & 30

Education Savings Accounts . . . . . . . . . . . . . . . . . . 9

Electronic Filing Options . . . . . . . . . . . . . . . . COVER

Eligibility Income . . . . . . . . . . . . . . . . . . . 38, 39 & 40

Estate Or Trust Income Line 7 . . . . . . . . . . . . . . . . 19

Estimated Payment Requirements . . . . . . . . . . . . 40

Estimated Underpayment Interest Penalty . . . . . . 23

Extension Of Time To File . . . . . . . . . . . . . . . . . . . 41

Extension Payment Line 16 . . . . . . . . . . . . . . . . . 21

Farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Federal Form W-2 Wage And Tax Statement 10 & 11

Filing Due Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Filing Status:

– Single (S) . . . . . . . . . . . . . . . . . . . . . . . . . 6

– Married, Filing Jointly (J) . . . . . . . . . . . . . 6

– Married, Filing Separately (M) . . . . . . . . . 7

– Final Return (F) . . . . . . . . . . . . . . . . . . . . 7

– Deceased (D) . . . . . . . . . . . . . . . . . . . . . . 7

Filing Your 2022 PA Tax Return . . . . . . . . . . . . . . . . 4

Foreign Address Instructions . . . . . . . . . . . . . . 4 & 5

Form PA-40 V (Payment Voucher)

Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Forms Ordering Services . . . . . . . . . . . . . . . . . . . . 2

Gain From Installment Sales . . . . . . . . . . . . . . . . . 33

Gambling And Lottery Winnings Line 8 . . . . . 19 & 20

Governor Robert P. Casey Memorial Organ And

Tissue Donation Awareness Trust Fund . . . . 24 & 44

Gross Compensation Line 1a . . . . . . . . . . . . . 10-14

Health/Medical Savings Accounts Line 10 . . . . . . 20

Individual Retirement Accounts . . . . . . . . . . . . . . . 12

Interest Income Line 2 . . . . . . . . . . . . . . . . . 14 & 15

IRA Distributions (60 Day Rollover Rule) . . . . . . . 14

IRC Section 179 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Joint Income - Joint Returns . . . . . . . . . . . . . . . . . . 7

Juvenile (Type 1) Diabetes Cure

Research Fund . . . . . . . . . . . . . . . . . . . . . . . 24 & 44

Language Services . . . . . . . . . . . . . . . . . . . . . . . . . 2

Loss On The Disposition Of Property . . . . . . . . . . 18

Mailing Instructions . . . . . . . . . . . . . . . . . . . . 25 & 26

Military Family Relief Assistance Program . . 24 & 44

Military Pay . . . . . . . . . . . . . . . . . . . . . . . . . . 40 & 41

Miscellaneous Expenses . . . . . . . . . . . . . . . . . . . 28

Money Market Funds, Mutual Funds, And

Other Investment Companies . . . . . . . . . . . . . . . . 14

Moving Expenses . . . . . . . . . . . . . . . . . . . . . . . . . 29

myPATH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Net Gain (Loss) From The Sale, Exchange,

Or Disposition Of Property Line 5 . . . . . . . . . 17 & 18

Net Income (Loss) From Rents

And Royalties Line 6 . . . . . . . . . . . . . . . . . . . 18 & 19

Net Income (Loss) From The Operation Of

A Business, Profession, Or Farm Line 4 . . . . . . . . 17

Nonresident Partners And Shareholders . . . 16 & 17

Nonresident Tax Withheld Line 17 . . . . . . . . . . . . . 21

Office Or Work Area Expenses . . . . . . . . . . . . . . 29

Oil And Gas Royalty Expenses . . . . . . . . . . . . . . 35

Oil And Gas Royalty Income . . . . . . . . . . . . . . . . 34

Other Business Travel Expenses . . . . . . . . . . . . . 28

Other Credits Line 23 . . . . . . . . . . . . . . . . . . . . . . 22

Overpayment Line 29 . . . . . . . . . . . . . . . . . . . . . . 24

PA Breast Cancer Coalition’s Breast And

Cervical Cancer Research Fund . . . . . . . . . . 24 & 44

PA ABLE Savings Program Accounts . . 9, 10, 20 & 36

PA Children’s Trust Fund . . . . . . . . . . . . . . . 24 & 44

PA Income Tax Classes . . . . . . . . . . . . . . . . . . . . . . 8

PA Personal Income Tax Guide . . . . . . . . . . . . . . . 2

PA Tax Liability Line 12 . . . . . . . . . . . . . . . . . . . . . 21

PA/Federal Differences . . . . . . . . . . . . . . . . . . . . . . 9

Partnership, Limited Liability Company And

PA S Corporation Partners,

Members And Shareholders . . . . . . . . . . . . . 16 & 17

Payment Options . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Pediatric Cancer Research Fund . . . . . . . . . 24 & 45

Penalties And Interest Line 27 . . . . . . . . 23, 42 & 43

Pennsylvania 529 College And Career

Savings Program . . . . . . . . . . . . . . . . . . . . 9, 24 & 45

Preparer Or Company Name . . . . . . . . . . . . . . . . 25

Privacy Notification - Social Security Numbers . . . 5

Qualified IRC Section 529 Plans . . . . . . . . 9, 20 & 36

Reciprocal Compensation Agreement States . . . . . 11

Reciprocal State Resident With A Refund . . . . . . . 11

Refund Check Line 30 . . . . . . . . . . . . . . . . . . . . . . 24

Refund Offsets . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Reimbursable Expenses . . . . . . . . . . . . . . . . . . . . 11

Renting Part Of Your Home . . . . . . . . . . . . . . . . . . 35

Rental Income (Loss) Vs.

Business Income (Loss) . . . . . . . . . . . . . . . . . . . . 17

Rental Income (Loss) Vs. Net Gain (Loss) . . . . . . 19

Residency Status:

– Resident (R) . . . . . . . . . . . . . . . . . . . . . . . 6

– Nonresident (N) . . . . . . . . . . . . . . . . . . . . 6

– Part-Year Resident (P) . . . . . . . . . . . . . . . 6

Resident Credit Line 22 . . . . . . . . . . . . . . . . 21 & 22

Retirement, Pensions, And Deferred

Compensation . . . . . . . . . . . . . . . . . . . . . . . . 11 & 12

Revenue District Offices . . . . . . . . . . . . . . . . . . . . . 3

Revocable And Grantor Trusts . . . . . . . . . . . . . . . 19

Roth IRA Rollover . . . . . . . . . . . . . . . . . . . . . . . . . 12

Sale Of A Principal Residence . . . . . . . . . . . . . . . . 18

Schedules:

– PA Schedule A . . . . . . . . . . . . . . . . . . . . 30

– PA Schedule B . . . . . . . . . . . . . . . . . . . . 31

– PA Schedule D . . . . . . . . . . . . . . . . . . . . 32

– PA Schedule DC . . . . . . . . . . . . . . 22 & 40

– PA Schedule E . . . . . . . . . . . . . . . . . . . . 33

– PA Schedule G-L . . . . . . . . . . . . . . . . . . 21

– PA Schedule J . . . . . . . . . . . . . . . . . . . . 36

– PA Schedule O . . . . . . . . . . . . . . . . . . . . 36

– PA Schedule OC . . . . . . . . . . . . . . . . . . 22

– PA Schedule SP . . . . . . . . . . . . . . . . . . . 37

– PA Schedule T . . . . . . . . . . . . . . . . . . . . 36

– PA Schedule UE . . . . . . . . . . . . . . . . . . . 26

– PA Schedules RK-1 and NRK-1 . . . . . . . 16

School Code And

School District Name . . . . . . . . . . . . . 5 & 6, 46 & 47

Selling Mineral Interests, Patents,

Or Copyrights . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Servicemembers Civil Relief Act . . . . . . . . . . . . . . . 41

Signature And Date . . . . . . . . . . . . . . . . . . . . . . . . 25

Small Tools And Supplies . . . . . . . . . . . . . . . . . . . 27

Social Security Number(s) . . . . . . . . . . . . . . . . . . . . 4

State Income Tax Levy Program for

Delinquent Federal Income Taxes . . . . . . . . . . . . 24

Stock Dividend Reinvestment Plans . . . . . . . . . . . 31

Student Claimant . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Students – Residency Status . . . . . . . . . . . . . . . . . 6

Supporting Schedules . . . . . . . . . . . . . . . . . . . . . . . 4

Surviving Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Tax Due Line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Tax Forgiveness Credit Line 21 . . . . . . . . . . . . . . . 21

Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . COVER

Taxable Distributions From C Corporations . . . . . . 33

Taxable Distributions From PA S Corporations . . . 33

Taxable Distributions From Partnerships . . . . . . . . 33

Taxpayers’ Rights Advocate . . . . . . . . . . . . . . . . . . 2

Toll-Free 24-hour, Automated Forms Ordering . . . . 2

Total Estimated Payments And Credits Line 18 . . 21

Total PA Taxable Income Line 9 . . . . . . . . . . . . . . 20

Total PA Tax Withheld Line 13 . . . . . . . . . . . . . . . . 21

Total Payments And Credits Line 24 . . . . . . . . . . . 22

Traditional IRA Rollover . . . . . . . . . . . . . . . . . . . . . 12

Treasury Offset Program For Delinquent

PA Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Undistributed Income . . . . . . . . . . . . . . . . . . . . . . 12

Union Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Unreimbursed Employee

Business Expenses Line 1b . . . . . . . . . . . . . . . . . 14

Use Tax Responsibility . . . . . . . . . . . . . . . . . 22 & 23

Veterans’ Trust Fund . . . . . . . . . . . . . . . . . . . 24 & 45

What Is Tax Forgiveness? . . . . . . . . . . . . . . . . . . . 37

Who Is Eligible For Tax Forgiveness? . . . . . . . . . . 37

Who Must File A PA Tax Return? . . . . . . . . . . . . . . . 4

Wild Resource Conservation Fund . . . . . . . . 24 & 44

Work Clothes And Uniforms . . . . . . . . . . . . . . . . . 27

INDEX