Earned Income Tax


1. WHO MUST FILE: Every person with earned income, regardless of whether tax is due or not, or if tax has been withheld by employer. Joint Filing (i.e. combing income, etc.) is NOT PERMITTED.

2. To file this return, just simply fill out the return numbers 1 through 17 putting down the information that is requested. Be sure to attach copies of W-2s and all applicable forms.

3. Employees’ Deductions for Expenses Directly Connected with Employment. Any employees claiming expenses must attach a copy of PA Department of Revenue Schedule UE, plus Federal form 2106, and Federal Form 3903 for Moving Expenses.

4. Effective with tax year 2009, pursuant to PA Act 32, business losses cannot be used to offset earned income (W-2 wages). A loss from one business, however, can be used to offset net profits from another business.

5. New for 2003; Act 166 Act 166 amends the definition of earned income as defined in Act 511, known as the Local Tax Enabling Act. Earned income shall be determined by the PA Dept. of Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2) known as the “Tax Reform Code of 1971” and regulations in 61 PA Code Pt. 1 Article V (relating to personal income tax).


Employer withholding for tax years 2011 and prior only. 2012 and forward should be filed with HA Berkheimer.

Under the existing legislation which applies to the City of Scranton, it is mandatory that an employer located within our boundaries withhold tax payments for all residents and non-residents of Scranton and remit these withholdings to the Collector of Taxes for the City of Scranton. It is therefore illegal for an employer within our boundaries to remit withholdings for non-residents to any collector other than the Collector of Taxes for the City of Scranton.

a. Withhold 3.4% for all Scranton residents
b. Withhold 1.0% for all non-residents

These amounts are to be withheld and remitted on a semi-monthly, monthly or quarterly basis – according to the schedule explained in your blue booklet. PLEASE SEE THE INSTRUCTIONS FOR PROPER FILING BELOW. At the end of every year, the employer must supply the Scranton Single Tax office with a year-end reconciliation (Form W3), W2 information for all employees including name, address, Social Security number, gross wages and amount of earned income tax withheld and all 1099M forms issued by your company. (Actual W2 forms, print-outs or magnetic filings are acceptable – see specs.) This information is due to the Scranton Single Tax Office by February 28.