What Is a PA-40 Tax Return?


Quick Answer

Qualified Pennsylvania residents file a PA-40 tax return to pay their yearly state income taxes, reports Taxhow. Such residents have to use a PA-40 form to file their taxes whether they earned their income in state or out of state. Part-year residents also use the PA-40 form to file taxes owed to the state. Taxpayers who live outside of the state and earn income in Pennsylvania are required to pay state income taxes but do not use the PA-40 form.

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Full Answer

Pennsylvania residents need to consult the Pennsylvania Personal Income Tax Return Booklet as a guide on how to fill out the PA-40 form or to determine whether they meet prerequisites to not fill out the form, explains Taxhow. Residents should also be aware that along with a 3.07 percent rate of state income taxes as of 2014, they may also need to pay local and school taxes. Low-income residents may apply for a tax forgiveness credit. Part-time residents need to fill out a PA-40 form for any income earned in and out of state while they were residents of the state, and other forms to pay taxes on income earned in the state when they were not residents.

The Pennsylvania Personal Income Tax Return Booklet contains entire sections on how part-time residents should file taxes. Pennsylvania residents earning income outside of the state also need to file state income taxes using the PA-40 form, according to Taxhow. Such taxpayers are credited for taxes paid to other states.

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