What is "Local Earned Income Township Tax" and do I have to pay it?
I live in Pennsylvania and am a freelancer/self employed. Every year I get something in the mail from the tax administrator Berkheimer telling me that I owe them money.
I do my taxes through Turbotax and pay both my state and federal taxes through them.
My question is what is this local/district/township tax and am I required to pay it?
Thanks
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I don't live in Pennsylvania and I don't know anything about this particular tax, but just the name says that it is a "local" tax. TurboTax covers federal and state taxes, not local taxes. Many places have city, township, and/or county taxes that you are required to pay in addition to state and federal taxes.
Pennsylvania is one of the states that divide the land up in to thousands of jurisdictions all of which have the power to tax.
Where you live (or work) is located in either a county, city, township or borough. They can tax you based on either your income, your property. You can also be taxed by the school district which can encompass multiple jurisdictions.
You should get local tax help to make sure that all the appropriate taxes are being covered.
PA local taxes are a little tricky at times, but they do have resources to help taxpayers out. The link below is a good place to start, it provides a step by step guideline to go about your local taxes.
The Address search application will tell you which locals you would need to file returns with as well as the tax rates.
There are links at the bottom of the page with links to the forms and instructions. The forms are relatively easy to fill out.
Act 32 For Employees/Self-Employed
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