Someone mentioned this Tax in another thread. Can you provide futher info on it? I did not know anything about this tax. I was just assessed after being here 5 months, and my tax collector did not mention anything about it.

Just get off the sofa and DO IT!!!

First, you need to know WHO your local income tax collector is - most are Berkheimer, not all. This link will let you do a search:
 
http://munstatspa.dced.state.pa.us/MunicipalTaxInfo.aspx?H=1
 
 
If it is Berkheimer, here is the link to their website:
 
http://www.hab-inc.com/content/default.htm
 
 
Regardless of who the collector is, we are all responsible for paying a local income tax which is how the schools and/or townships get their taxes from our income. This is not to be confused with the REAL ESTATE tax that we are responsible for as property owners and is paid through our mortgage escrow.
 
I'll let Frank take it from here because I am not sure how the exemptions work if you are employed out of the area, but one way or the other this needs to be paid. Usuall it is 1%, but I have seen it at .5% and as high as 2% depending on where you live.
 
In the past I have posted a spreadsheet with information before tax season, if I have time I will do so again.

As wayne noted berkheimer is a tax collector not a tax.  many townships in the region use them as a collect versus having an individual (elected) do it.
 
you mention "and my tax collector did not mention anything about it."  sounds like your township is doing its own collections.
 
you might also want to check out a write up i did last year
http://pocono.commuterclub.org/forum/tm.aspx?m=90533
 
 

Frank,
I live in pocono twp, it says the eit is .5%.  What am I calculating this .5% based on ?  Sorry if some of the questioning seems stupide, it's just a little bit confusing for me. 

We received a tax bill somewhere in september (I think) or october, I sent this off to the mortgage company as taxes are escrowed.  I believe there is also paper work sent to us in March which I was told to also forward off to the mortgage company (lawyer at closing).  Since I work in PA, I had my job stop withholding nj taxes and I make my quarterly PA taxes (the 3.07% one).

The part where it confuses me is applying this tax on my gross ? and is this the same for my wife as well who works in nj too ?   I'm all confused, please point me in the right direction.
Thanks

M

don't worry about it being stupid or not - its sadly a reflection on the rules/laws that make it confusing.

EIT = Earned Income Tax.  The EIT is usually split between the Township and the School District.  in your case its .5% for the Township and .5% for the School District for a total of 1%.  If you were to look at the local EIT form or the berkheimer provided form it will only show the total tax due - ie 1%.  This is basically a flat tax.  Gross earning x 1%.

The Real Estate connected taxes are done twice a year.  The one in March is triggered by the township that generally is $300-$700 (wide scale do to different values).  The big one that is due in Sept (with discount) is triggered by the School district.
 
 
edited
if you work in pa and live here, your employer should be taking out both local and state taxes eliminating the need to file estimates.

Can the Local Tax (Berkheimer) be deducted on the Federal return?

http://www.stuffonmycat.com

No Shirt
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yes but remember its in the year you pay it.  so if you had a balance due in April 2006 (and paid it in 2006) you can deduct it when you are doing your taxes for 2006 Federal return.

A pal of mine asked me if anyone knows when the deadline is for a company to give your w2 info so you can file your taxes??? I always was thinking up until jan 31 but some say they have longer than that. 

Any person can be completely unbiased on any topic that dont affect his religion his prejudices or his pocketbook jerseybill

EIT?  Now I'm really confused.  So what is this new Personal Income tax they are talking about recently - has to do with Act 1 or something? 

jerseybill

W-2 must be furnished to the employees by January 31, 2008.  if you don't get it by then and you were to call the IRS to complain they would tell you to wait a couple of weeks then you can file a form to get it.
 
Vallygrl2000
EIT is Earned Income Tax.  PIT (Personal Income Tax) is related to Act 1.  where EIT only taxes what you earned (ie wages), PIT applies to more sources of income like interest, dividends and capital gains.

Thanks for the info will pass the word.

Any person can be completely unbiased on any topic that dont affect his religion his prejudices or his pocketbook jerseybill