Pennsylvania Taxable Income

Article ID: 59925  

Question
Pennsylvania Taxable Income

Answer

The PA-40 line number on which to report the income follows each item. Classify means report the income in the appropriate PA income class based on all facts and circumstances. See PA PIT Guide for more information.


 - Employer provided fringe benefits, unless excludable (Line 1a)
 - Sick pay and disability benefits that represent regular wages, such as sick leave pay (Line 1a)
 - Allowances and reimbursements in excess of allowable employee business expenses (Line 1a)
 - The value of property received as payment for services (Line 1a)
 - Delay damages received in connection with a court judgment or settlement to the extent that the payments represent back wages (Line 1a)
 - Honoraria (Line 1a)
 - Compensation as fees for performing services as an executor or an administrator of an estate or a director of a corporation (Line 1a)
 - Severance pay (Line 1a)
 - Incentive payments received for terminating employment before reaching normal retirement age (Line 1a)
 - Awards and gifts given in recognition for, or given as a transfer of cash or property, in payment for past, present, or future service as an inducement to perform future services (Line 1a)
- Jury fees (Line 1a)
- Expert witness fees (Line 1a)
- Cash reimbursements for personal expenses, such as commuting and day care (Line 1a)
- A discharge of indebtedness, unless specifically excludable from taxable income (Classify)
- Damage awards and settlements to the extent that the payments represent back wages or another uncollected entitlement to PA taxable income (Classify)
- Covenants not to compete, or for refraining from the performance of services (Classify)
- Other income described in the PA income classes (Classify)
- Income for performing services as an executor or director when such services are undertaken as part of your business or profession (Line 4)


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