What is deductible on PA state taxes?

Pennsylvania allows four deductions against income. Deductions are allowed for: Medical Savings Account contributions; Health Savings Account contributions; IRC Section 529 qualified Tuition Program contributions, and IRC Section 529A Pennsylvania ABLE Savings Account Program contributions.

What is LST deduction?

The Local Services Tax (LST) for cities in Pennsylvania is withheld on a mandatory basis from the salaries of employees whose duty stations are located in the cities listed below: City. State/City Codes. Biweekly Tax Amount. Annual Tax Amount.

Is LST tax deductible on federal return?

No, an LST is not considered a deductible local income tax using your W-2 box 14 LST category when you’re filing your federal return.

What is Box 14 LST on W-2?

Box 14 on a W-2 is where employer’s make notes for you. They don’t generally affect your tax return.

Is Pennsylvania local tax based on where you live or work?

The tax is based on the taxpayer’s place of residence (domicile) and NOT their place of employment. The EIT is separate from the Pennsylvania personal income tax (your state income tax).

Is mortgage interest tax deductible in PA?

Mortgage interest deduction: Your mortgage interest on both first and second liens is tax deductible. Any points you paid to obtain a lower interest rate are deductible. Private mortgage insurance payments are also deductible.

What states have LST tax?

(a) California’s only local income tax is a San Francisco payroll tax, while New Jersey’s is a Newark payroll tax, neither of which are included in Census data.

What does PA LST mean on W-2?

Local Services Tax
Local Services Tax (LST)

Are state taxes deductible?

Taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. The Tax Cuts and Jobs Act limits the total state and local tax deduction to $10,000.

Is PA LST reported on W-2?

Yes. Report LST withholding in Box 14 of the W2. DO NOT report LST withholding in Box 19, which is reserved exclusively for local earned income tax payroll withholding.

What tax deductions can I take in PA?

Deductions Allowed For Pennsylvania Tax Purposes. Pennsylvania allows four deductions against income. Deductions are allowed for: Medical Savings Account contributions; Health Savings Account contributions; IRC Section 529 qualified Tuition Program contributions, and IRC Section 529A Pennsylvania ABLE Savings Account Program contributions.

Can a municipality use LST revenue to reduce property taxes?

In addition, municipalities must use at least 25% of the tax revenues for emergency services. Municipalities, but not school districts, are specifically permitted to use LST revenues to reduce property taxes through a homestead or farmstead exclusion. Homestead or Farmstead Exclusion.

How do I claim PA tax credits for taxes paid to other states?

If a taxpayer claims a credit for taxes paid to other states, the taxpayer must complete PA-40 Schedule G-L. The taxpayer must also submit with the PA-40, Personal Income Tax Return a copy of the income tax return and W-2 (s) filed with the other state.

Can a political subdivision charge a tax to a taxpayer?

Upon request, a political subdivision must provide a taxpayer with a receipt for payment of the tax. The total tax levied by a municipality and school district remains limited to $52. Taxpayers are not subject to the payment of the LST at more than one place of employment during a payroll period. School Districts.