❓ Frequently Asked Questions ❓

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When reviewing your W-2 to determine the taxable gross wages for local tax purposes, use the following steps:

     1. Compare the wages reported in boxes 16 (state wages-PA) and 18 (local wages). If the wages are the same, AND there is no higher wage figure listed in any other income boxes, this should be your locally taxable wage.

     2. If the PA state wages and local wages are not the same or if no local wage (box 18) is reported or there is a higher wage figure listed in another income box, compare the wages reported in box 5 (Medicare wages) with box 16 (state wages-PA). If these figures are the same, this is your taxable wage.

     3. If the box 5 and box 16 figures are different, check box 12 for a code C deduction. If the code C deduction in box 12 is the difference between the Medicare and PA State wages, the  PA state wage figure (box 16) is your taxable wage.

If there is no wage amount in the local wage box, another way to determine locally taxable wages is to begin with box 1 (Federal wages), then add any 12D reported in box 12 and subtract any 12C reported in box 12. The end result should match the PA state wage figure in box 16 and is the taxable wage.

Whether you've recently moved to the area from out-of-state, or you've resided in Pennsylvania all your life, it's important to understand Pennsylvania local taxes and how they impact you. In PA, in addition to the state personal income tax collected by the PA Department of Revenue, you may also be responsible for different types of taxes that your municipality, school district, or county levies.

See More Information for New Residents >>

The quickest way to access your PA State Returns records is online.

You can access your tax records 24/4 via your PA Department of Revenue myPATH account. If you do not already have an account, create one here: myPATH Home Page

If you are unable to access myPATH, your records can be accessed through submitting a completed Form REV-467 Authorization for Release of Tax Records.

Act 205, or the Distressed Municipal Pension Recovery Tax Act, was signed into law in 1984 and allows certain municipalities to increase their earned income tax rates to fund their municipal pension liabilities. The State of Pennsylvania must approve all requests to implement Act 205.

Act 205 was approved for the City of York starting January 1, 2015, which increased the resident and non-resident earned income tax rate from 1% to 1.25%. The increase must be used for the City of York’s distressed pension system. This increase only pertains to the City of York and not the County of York.

What does this mean? 

Anyone residing in and/or working in York City will have a tax rate of at least 1.25% starting January 1, 2015. An individual’s resident tax rate always takes precedence over the Act 205  increase. If an individual works in the City of York, but lives in an area with a resident tax rate higher than 1.25%, the higher resident rate will be used.

(For example, a Dover resident working in the City of York will continue to have a tax liability of 1.4% - the City of York does not receive any portion of the tax in this situation.)

Conversely, if an individual lives in an area where the resident tax rate is less than 1.25%, the withholding tax rate would be the higher York City non-resident rate of 1.25%. 

(For example, a Dallastown Borough resident working in the City of York will have 1.25% tax rate – 1% to Dallastown and the remaining .25% will be to the City of York. In this case the City of  York portion is not refundable – it is allocated to the City’s distressed pension recovery.)

NOTE: This rate increase only applies to the City of York. It does not apply to surrounding municipalities and is not determined by your zip code. Many municipalities have a York, PA  address and zip but are not located within the City of York. Only those  residents or non-residents who live or work within the City’s municipal  boundaries are subject to the tax increase.

Depends. On February 23, 2016, PA signed ACT 6 of 2016 into law, which exempts all active duty military service from the Earned Income Tax, no matter where the active duty was served. The law is not retro-active. This ACT takes effect for taxes levied and collected after December 31, 2015.

Please note that prior to ACT 32 (before 2012) Active Duty pay, no matter where it was earned, was not-taxable. In 2012, ACT 32 made the definition of earned income mirror the PA  Department of Revenue’s definition of compensation (except for clergy housing) and thus Active Duty pay earned in Pennsylvania became taxable for Local Income Tax purposes.

How does this affect Local Income Tax Returns?
For the years 2012 through and including 2015, active duty military pay earned in Pennsylvania is taxable. When processing prior years returns for the tax years 2012, 2013, 2014 and 2015, YATB will tax active duty military pay earned in Pennsylvania.

For tax years prior to 2012 and after 2015, active duty military pay earned in Pennsylvania will be not taxable. All active duty military pay is exempt from Local Income Tax effective 1/1/2016.

The 1099 tax form is a widely used IRS document that encompasses various potentially taxable income scenarios. Depending on your financial activities throughout the year, you may receive one or more types of 1099 forms, or even multiple copies of the same type. 

For more information about 1099 forms and who receives them, click here.