Questions
1)  Who Must File?
2)  What is the filing deadline?
3)  How can I request a timeline extension to file later than April 15th?
4)  Where do I file my Local Tax Return?
5)  What are the taxable income items?
6)  What are the non-taxable income items?
7)  Explain net profits and losses.
8)  Am I required to make quarterly tax payments?
9)  Tell me about local filing compared to the PA Personal Income Tax Return.
 
Answers
1)  Q Who Must File?
A
Any resident of Boggs Township, Burnside Township, Howard Borough, Howard Township, Huston Township, Milesburg Borough, Port Matilda Borough, Snow Shoe Borough, Snow Shoe Township, Union Township, Unionville Borough, and Worth Township who is at least 18 years of age or who has taxable earnings and/or net profits must file even if no tax is due. Failure to file a return will subject you to a $500 fine for each offense plus costs, and in default of payment thereof, to be imprisoned for a period not exceeding (30) days.
2)  Q What is the filing deadline?
A
Tax returns are due on or before April 15th of the succeeding year for which the return is filed.
3)  Q How can I request a timeline extension to file later than April 15th?
A
A copy of your Federal Tax Extension request form (Form 4868) must be received in the Tax Office by April 15 with a check for any estimated taxes due.
4)  Q Where do I file my Local Tax Return?
A

As of 2012, all tax returns should be filed with the Centre Tax Agency, 243 S. Allen Street, State College, PA 16801 (814) 234-7120.
5)  Q What are the taxable income items?
A
Wages, salaries, tips, commissions, bonuses, fees, net profits from self employment, severance pay, premature retirement or other deferred payment plan distributions not rolled over into another federally qualified retirement plan, cafeteria plan benefits to the extent the employee could have elected taxable benefits, employee contributions to 401(k), 403(b), 457 and other types of deferred payment programs, taxes assumed by the employer, clergy housing and auto allowance, incentive payments, fellowships, stipends paid to graduate students, National Guard or Reserve pay, fair market value of noncash fringe benefits including employer provided vehicles, and other forms of compensation for an employee's services.
6)  Q What are the non-taxable income items?
A
Interest, dividends, subchapter "S" income, passive income from limited partnerships, social security benefits, pensions, annuities, and retirement pay received after retirement from employment and upon reaching a specific age or years of service or upon death or disability, IRA benefits, third party sick pay, capital gains, death benefits, life insurance proceeds, gifts or bequests, public assistance, active military duty, unemployment compensation, income from trusts, rental income by individuals not licensed (or conducting a business) as realtors by the Commonwealth of Pennsylvania.
7)  Q Explain net profits and losses.
A
Net profits of a business are to be determined with reference only to the gross income and expenses of that business, without mixing the income of one business activity with the expenses of another. A LOSS incurred from a profession, business activity or venture, regardless of the nature, MAY NOT BE DEDUCTED from the net profits of any other business activity.
8)  Q Am I required to make quarterly tax payments?
A
If you are self-employed or your employer does not withhold Local Earned Income Tax, you are required to pay the tax quarterly using Form 521. If you have not received From 521 by April 1st, please contact our office immediately and the forms will be sent to you. Failure to comply will subject you to interest, penalty, and a possible fine.
9)  Q Tell me about local filing compared to the PA Personal Income Tax Return.
A
The Tax Office participates in a matching program with PA Department of Revenue for compensation and net profits. If, by audit, tax items are changed by either the IRS or State Income Tax Bureau, you must file an amended local return to reflect such changes. If you have Subchapter "S" income, it is suggested that you include a copy of your Federal Schedule K-1 (Form 1120S) with your return for information purposes only. A "discrepancy" letter will be sent for income items that do not match or are not explained.