Filing Your Tax Return
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Can I file my return and pay online?
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Where is my Keystone Tax Account Number located?
The letter from Keystone and your annual Final Return form each contain your account number.
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If I moved during the year, do I have to pay local earned income tax?
Yes. You are required to pay local earned income tax on the income earned for the period of time you resided in each location. For example,
if you lived and worked in one municipality for only 4 months then you only pay for that location on the income earned during those 4
months. You must complete the final return indicating your status as a part-year resident and complete the ITR-1 schedule. When completing
the form, list the number of months you lived in each location and provide copies of the other municipal returns or documentation
substantiating the listed residence(s).
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What documents do I need to show that I was a resident for only part of the year?
You must complete a final return for each location in which you lived. Provide Keystone with a copy of the final return for each
jurisdiction, designate your part-year residence status on the local return where indicated and complete the ITR-1 Schedule on the back of
your return. If you moved to or from an area that does not tax earned income, provide Keystone with supporting documentation, such as a lease
or utility bills showing the other address and duration of residence.
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What is the tax rate where I live?
The Pennsylvania Department of Community and Economic Development (DCED) identifies the local tax rates by jurisdiction. As a service to
our taxpayers, Keystone provides a link to the Department on our “Helpful Links”
page. Go to Taxpayer Resources at www.keystonecollects.com.
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Is any income exempt from local earned income tax?
Yes. Certain types of exempt income may include: 1) Income derived from investments such as dividends, interest, trusts, bonds, insurance
and stocks is exempt. 2) Payments of disability benefits, old age benefits, retirement pay, qualified pensions, social security payments,
public assistance or unemployment compensation are exempt. 3) Compensation received by Pennsylvania residents from active service in the armed
forces of the United States and earned while serving outside of Pennsylvania is exempt. 4) Compensation of non-residents of Pennsylvania
(residents of other states) on active military service in Pennsylvania is exempt.
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When should I include a copy of my PA-40 to support my return
The PA-40 enables the Tax Collector to verify that the taxpayer seeking certain credit applications accurately reports all wages and
profits along with the deductions for taxes paid to a non-reciprocating state or to any political subdivision outside of Pennsylvania (foreign
tax). In such cases, the taxpayer will demonstrate that he or she deducted less than the full amount of that foreign tax as a credit against
his or her PA income tax liability, and may therefore be entitled to an additional credit against the local earned income tax shown on the
return.
The Tax Collector will notify the taxpayer if additional supporting documentation, including local or state schedules and the PA-40 return
are necessary to verify the accuracy of income reported or refunds claimed in any given year.
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Where can I get a copy of the local tax return form?
The easiest way to file is using e-File. The printed version of the tax return, schedules
and other forms are also available on this site by selecting the “
Forms Download” link found on the “Taxpayer Resources” page at www.keystonecollects.com.
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Can I make payments locally?
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Who do I make my check made payable to?
Make checks payable to Keystone Collections Group.
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Where do I mail my return?
| Refund or Credit
Keystone Collections Group
PO Box 509
Irwin, PA 15642-0509 |
Payment Enclosed
Keystone Collections Group
PO Box 529
Irwin, PA 15642-0529 |
No Payment or Refund
Keystone Collections Group
PO Box 549
Irwin, PA 15642-0549 |
Meeting Your Filing Deadlines
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When is my local tax return due?
You must file or mail your final return on or before April 15, unless the 15th is a Saturday, Sunday or Federal holiday, then file by the
next business day. The postmark determines the date of mailing.
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I earned income, but my tax was not withheld; when are my quarterly payments due?
1st Quarter payment is due by April 30th of the tax year.
2nd Quarter payment is due by July 31st of the tax year.
3rd Quarter payment is due by October 31st of the tax year.
4th Quarter payment is due by January 31st of the following year.
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How do I calculate my penalty and interest?
Payments made after the due date on finals returns or any quarterly estimates are subject to interest at the rate established by the
Commonwealth at the rate of three (3%) percent for tax year 2012 (i.e., tax x .0025 x #months). An additional penalty at the rate of one
percent (1%) for each month (or partial month) during which the tax remains unpaid (i.e., tax x .01 x #months).
Philadelphia and Out-of-State Taxes
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If I work in Philadelphia, am I subject to both the Philadelphia tax and my local tax?
If you work and are taxed in the City of Philadelphia in 2012, you may apply a credit for tax paid on Philadelphia wages. You may not
transfer the credit to your spouse. Even if all of your income is earned in the City of Philadelphia, you are still
required to complete the local final return for the community where you live and provide documentation showing the amount
of wage tax paid to Philadelphia.
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How do I receive credit for the wage tax I paid on earnings in Philadelphia?
Wage taxes paid to Philadelphia may apply as a credit directly against the local tax liability. Your credit cannot exceed you local
tax liability. The credit will only apply to the taxpayer who paid Philadelphia wage or net profits tax on earnings. To receive the
credit for wage tax paid to the City of Philadelphia, you must complete the local final return for the community where you live and
provide documentation showing the amount of wage tax paid to Philadelphia.
To assist you in computing your Philadelphia credit, Keystone provides a schedule (ITR-2) for download on the website.
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How do I receive credit for the tax I paid to a municipality in another state?
Taxes paid to local municipalities in other states may apply as a credit directly against local tax liability on those wages earned in the
other state. To claim this credit for income taxes paid to a local municipality in another state, income must be subject to both the out-of-
state municipal tax and the earned income tax where you reside.
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How do I receive local credit for income tax paid to another state?
You must first apply credit for income taxes paid to another state against your Pennsylvania state income tax (PA-40). You may use any
remaining credit against local earned income tax. You cannot be claim the same credit against liability for both state and local taxes in
Pennsylvania.
No credit is given for state earned income tax paid to states that reciprocate with the Commonwealth of Pennsylvania. For instance, if
you work in and pay tax to the State of New Jersey, you cannot apply credit for the New Jersey State tax against your home municipality
local tax. To recover tax paid to a reciprocating state you must apply to that state for a refund. Reciprocal states include: Maryland, New
Jersey, Ohio, Virginia, West Virginia and Indiana. No credit is allowed for tax paid outside of the United States.
To assist you in computing your out-of-state credit, Keystone provides a schedule (ITR-2) for download on the website.
Tax Withheld at Work
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My employer withholds the local earned income tax from my pay; do I still have to file a final return?
Yes. If you live in a Pennsylvania, the law requires you to file a final return.
