Finance - Earned Income Tax - Frequently Asked Questions (FAQ)

I only lived here part of the year. How and where should I file?
You need to file each place you lived. Ex: If you lived in Lower Macungie Township 3 months and the City of Allentown 9 months, you would need to file for both places reporting 3/12 of your income and tax withheld to Lower Macungie Township and 9/12 to the City of Allentown. All amounts used should be prorated (wages, tax withheld, net profit/loss and employee business expense). You cannot prorate wages but used full taxes withheld. You would not receive a refund from our tax office and then pay Allentown. The City of Allentown would place a claim with us to get their portion of the tax if we received all of it based on your tax filing with them. If all income on a specific W2 or Net profit/loss schedule would be from the period of time you were living in Lower Macungie Township, then a brief note stating this should be included with the tax return specifying which income.

I don't have enough copies of the W2/1099.
If you are short copies, make a copy and remit that with your tax return. Verification must be remitted to verify all amounts used. If there is an odd situation where no 1099 or W2 was received, please attach a brief note explaining what the income represents. Appropriate schedules must also be attached to verify all net profits/losses and employee business expenses.

I filed electronically and don't have an employee expense form to submit. Can I still use the deductions?
No! YOU MUST SUBMIT a Pennsylvania state form PA UE to verify the employee expense deduction or the deduction will not be allowed. You MAY NOT substitute a Federal form 2106. If you did not receive this form from the state, it can be downloaded off the Internet by going to the website www.revenue.state.pa.us and clicking on Forms and Publications. All required state forms can be obtained through this website. STATE F ORMS must be used for net profits/losses also. Federal forms should not be used.

My child is still in school. Must they file?
If they have earned income regardless of where it is earned but are still a resident of Lower Macungie Township (EX: per drivers license) they must report their income and file a tax return. There is no age limit.

I live in Lower Macungie Township but work out of state. Do I report this income?
Yes. You must report all income regardless of where it is earned.

Can I pay the net amount if one spouse has tax due and the other has a refund due?
No! All records are kept as individual records which is why we do not allow the cross using of these amounts. One spouse s record would always show they had not paid the total due while the other would appear to have never been given their refund.

Are interest and dividends taxable?
No! Also not taxable are unemployment benefits, social security, capital gains, lottery winnings, inheritances and wages earned while on active military duty. See NON TAXABLE INCOME on the back of the tax return for full list.

What should I do if I can't file by the due date?
When you do file your return, be sure to attach federal extensions. Form 4868 is valid until August 15 and form 2688 is valid until October 15. If the extensions are not attached, the return will be deemed to have been filed late and a late filing fee will be assessed. The postmark on the envelope is what determines if the tax return was filed on time.

I didn't have any income but am not retired. Do I still need to file a tax return?
Every resident is required to file a local Earned Income Tax return. In one of the columns on the return, indicate 0- income and write the reason such as housewife, student, unemployed, disability, etc). If spouses are filing on the same return and one spouse does not have income, DO NOT just leave the column blank. Indicate 0- and the reason in the appropriate column. Failure to receive a tax form does not exclude your obligation to file.

Can we combine the amounts as spouses and only use one column?
No! Each spouse must list the amounts which apply to them in one of the columns. This is not a true joint return in the sense that amounts may be combined or cross used. If spouses are filing on separate returns, do not list the other spouse s social security on the return.