What Is the PA-40 Tax Form Used For?


Quick Answer

The PA-40 tax form is used to file personal income tax returns in the state of Pennsylvania. Full-time residents, part-time residents and non-residents earning taxable income in Pennsylvania exceeding $35 must file a PA-40 tax form. The form is available online or at government offices, post offices and public libraries.

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Full Answer

Taxable income in Pennsylvania includes compensation by means of wages, dividends, interest, estates and trusts. It also includes income from royalties, rents, copyrights, patents, and lottery and gambling winnings. Partnerships, business trusts, S corporations, limited liability companies and farms must pay income tax on their net profits. Income exempt from taxation includes alimony, child support, gifts and inheritances, and capital gains from selling a primary residence. Pensions, Social Security benefits, and unemployment and workers' compensation are also not subject to income tax.

The tax rate for personal income in Pennsylvania is 3.07 percent as of 2015, without personal exemptions or standard deductions. Pennsylvania has a reciprocal personal income tax agreement with certain other states so that work performed in Pennsylvania is not doubly taxed. Pennsylvania also offers a tax reduction or refund through its tax forgiveness program based on income and family size. Other deductions are allowed for contributions to medical savings accounts, expenses directly related to occupation or employment, or contributions to Internal Revenue Service section 529 tuition programs.

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