- 1 Tax Tips And Tools For The 2016 - 2017 Tax Season
- 2 Pennsylvania Sales Tax Guide for Businesses
- 3 Where do I find the Pennsylvania Revenue ID for a Corporation?
- 4 How to Prepare a Pennsylvania Inheritance Tax Return
Tax Tips And Tools For The 2016 - 2017 Tax Season
ONLINE TAX FILING
If the situation arises where you need to amend your federal income tax return, it's most likely with the changes on your federal return that you will need to amend your state tax return as well.
Failure to report all your income or unclaimed deductions or listing incorrect filing statuses are common reasons why tax returns are amended. Amending a state return can alter your tax liability which may result in owing additional taxes.
Amending Your State Tax Return
This collection of links to State government web sites will include useful information for individuals and businesses alike. Whether you are already in business, just starting, or expanding your business to a new state - there is something here for you!
Find information on doing business in the state your in as well as taxation information, links for employers, and more.
For information on how to correct your previously filed state tax return, click on your state tax agency link here or, better yet, follow our 3 Steps To Amending Your State Tax Return below.
Click on the state of your choice additional info:
First you need to complete Form 1040X and submit it to the Internal Revenue Service. You will need to mail a paper copy of the completed form to the IRS with payment of any taxes that are due. Submit this by mail since electronic filing is not accepted for amendments
You will then need to contact your State Department of Revenue to obtain the correct form for amending your state tax return. These state links are located in our list above to allow you to obtain the forms you need. These amendment forms may vary in title description for each state but most states do use the letter "X9quot; in their amendment forms titles.
Next you will need to complete the correct amendment form for your state, then submit it to your state's Department of Revenue. The form should list the corrections for annual income, deductions and filing status that should have been provided on your original tax return. Should the amendment results in you owing additional taxes, mail the tax payment with the amendment to your states Department of Revenue. Include a copy of your 1040X federal amended tax return form as well.
Amended Federal & State Tax Returns
If you amend your federal tax return you'll no doubt have to amend your state tax return as well if you owed income taxes to your state when you filed. When you file Form 1040X it's best to look into state requirements as they can vary widely from state to state. Typically though, they do follow federal IRS rules.
If you find that your taxes are not ready to be accurately filed, it is most likely a much better idea to file a tax return extension than to file your return as best you can and go back to amend it at a later date.
This happens sometimes when taxpayers get anxious and want to file early so they can get a refund, then they discover that their income may have been understated because a 1099-MISC form shows up late from an employer you may have contracted a small job for.
Wait until you get the original refund if you are you are in the process of filing a claim for an addition to your refund.
If you find you owe additional taxes after you filed, file Form 1040X and pay the tax as soon as possible. Form 1040X lists instructions and addresses for the service centers where you can send amended tax returns.
Remember to list the year of the return being amended on the front of Form 1040X.
File separate 1040X Forms for each year you are amending and mail each one in a separate envelope.
Pennsylvania Sales Tax Guide for Businesses
We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Pennsylvania, and if so, how best to tackle the sales tax situation in the Keystone State.
After reading this, you’ll know:
- Do you or don’t you need to collect Pennsylvania sales tax?
- Which customers do you collect from?
- How much do you collect?
- What do you do with all the sales tax you’ve collected?
- Way more than you probably ever wanted to know about Pennsylvania sales tax
Do you have sales tax nexus in Pennsylvania?
Good news! You only have to begin thinking about Pennsylvania sales tax if you have sales tax nexus in Pennsylvania.
“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.
Pennsylvania considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- An office or place of business
- An employee present in the state
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in Pennsylvania
- Independent contractors or other representatives in Pennsylvania
- Leasing property in the state
You can click here to read exactly what the Pennsylvania Department of Revenue (Pennsylvania’s taxing authority) has to say about what constitutes sales tax nexus in Pennsylvania.
Do you have sales tax nexus in Pennsylvania if you sell on FBA ?
If you sell on Amazon FBA , you may have sales tax nexus in Pennsylvania. Storing physical products in a state can create sales tax nexus, and Pennsylvania is home to nine operating or planned Amazon Fulfillment Centers.
To determine whether or not you have items stored in an FBA warehouse in Pennsylvania, you can do one of two things:
- Login to Amazon Seller Central and pull your inventory report
- Sign up for a 30-day free trial of TaxJar and find out from where your Amazon inventory ships with our Amazon badge feature
You may find that your inventory is stored in one or all of Pennsylvania’s Amazon fulfillment centers in this list:
Where do I find the Pennsylvania Revenue ID for a Corporation?
Oftentimes when preparing tax compliance forms for the state of Pennsylvania, such as Form RCT-101, the preparer may not know what to put on the form when they see a line like the following:
Preparers of Pennsylvania business returns oftentimes don’t know what the business’ revenue ID is.
If you’re confused about what the Pennsylvania Revenue ID for a corporation is or how to find it, read on.
What is a Pennsylvania Revenue ID?
What is a Pennsylvania Revenue ID anyway, and how do we know what it is? A Revenue ID, also called by Pennsylvania as a Corporate Tax Account ID, is a ten-digit number assigned automatically by the state when a corporation first files tax returns or other types of tax compliance filings with the state. If you haven’t been assigned a Pennsylvania Revenue ID yet, it’s probably acceptable to just enter the Federal Employer Identification Number (FEIN) on the return and leave the Revenue ID box blank.
Can I lookup a Pennsylvania Revenue ID online?
Presently, the Pennsylvania Department of Revenue does not offer a way to lookup a corporation’s Pennsylvania Revenue ID online. The quickest way to find a corporation’s Revenue ID is to check for the identification number on any correspondence received from the Pennsylvania DOR. If that option isn’t available, though, a call to the Pennsylvania Department of Revenue can be made and they’ll be willing to give you the number over the phone.  The representative will likely require you to confirm your FEIN and the name and address of the corporation before giving out the Pennsylvania Revenue ID number over the phone, however, so be ready with that information before calling them.
How to Prepare a Pennsylvania Inheritance Tax Return
In Pennsylvania, an inheritance tax applies to estates inherited under a will or the state's intestacy laws. The burden for filing the tax falls first on the estate executor or named representative, and then on the person inheriting if the executor doesn't file. For deceased residents of Pennsylvania, the tax applies to all tangible and real property located in the state at the time of death plus what is known as "intangible9quot; property, such as bank accounts, stocks and bonds, etc., no matter where they are held. For deceased non-residents, it applies only to real and tangible property located in the state.
Visit the Register of Wills Office at the county courthouse of the deceased; your local county courthouse, if you are a Pennsylvania resident; or call 1- 800-362-2050 to order REV- 1500 forms and instructions for deceased Pennsylvania residents or REV - 1737 for deceased non-residents.
Complete the cover sheet with all necessary information that will include information such as the deceased's address, the contact person for correspondence and questions, and the deceased's Social Security or Tax ID number. You will also blacken the ovals that apply. For example, this will probably be an "Original Return," which means you will blacken that oval.
Fill out Schedule A if the decedent held any real estate or a partial interest in real estate on the date of death. You will need to include an appraisal of the fair market value and county tax assessment. You will also need to include copies of deeds if the deceased owned only a portion of the property.
Include Schedule B if the decedent owned stocks and bonds, either individually or jointly with someone else. Most of the information you need will be available on the account statements for each investment. However, you will need to provide the date-of-death value rather than the most recent value. You can usually find this on the site of the transfer agent or on various financial websites. For weekends and holidays, take an average of the high and low price on the preceding and next trading days.
File Schedule C if the deceased owned a business, whether it was a corporation, partnership or sole proprietorship. The purpose is to value the company as closely as possible on the date of death so you might also need to include information on how any stock was valued along with corporate tax returns for the year of death and the four previous years. If the business was jointly owned, include a Schedule F.
File Schedule D only if the deceased held a receivable. This is money owed the deceased, not money the deceased owed. It would include the original amount of the loan and the amount owed. Follow that by completing Schedule E, listing all other property such as clothing, jewelry, valuable collections and bank accounts -- all valued at date of death. As of 2012, any individual item valued at more than $3,000, or any collection valued at $10,000, will require an appraisal.
List on Schedule F any property included on other schedules owned jointly with a right of survivorship. Don't include property the deceased owned jointly with her spouse.
Complete Schedule G for property that did not go through probate. This would be assets such as an IRA that passed directly to a named beneficiary. You would also include on this schedule any transfers of property within one year of the decedent's death that exceeded $3,000.
Deduct from the taxable inheritance allowable expenses listed on Schedule H -- Funeral Expenses and Administrative Costs; and Schedule I -- Debts of Decedent, Mortgage Liabilities, & Liens. Next, complete Schedule J, where you will list the beneficiaries of the estate along with their shares. You will also include any portions of the estate that would go into trusts.
Include Schedule K only if the decedent had assets that would need to be valued by an actuary. Examples would be term certain annuities. The remaining schedules would apply to special situations such as remainder trusts and spousal trusts.
Carry forward the "Recapitulation" amount on each of the schedules to the proper line on the Cover Page. Follow all instructions. Line 14 will be the amount of the estate subject to Pennsylvania Inheritance Tax. For the most part, spouses will not owe tax. As of 2012, lineal descendants pay 4.5 percent, siblings pay 12 percent and nonlineal descendants pay 15 percent. File the return in the county where the decedent lived. If the decedent was a non-resident, file in the county where the property was located or with the PA Department of Revenue.
- PA Form REV - 1500
- Investment and bank account statements
- Date-of-death values
- Written appraisals of required items, if applicable
- Copy of probated will
- Trust documents, if applicable
- There is a 5 percent discount for inheritance tax payments made within three months of the date of death.
- You might be able to claim a family exemption of $3,500.
- Include a copy of the decedent's will along with any trust documents and supporting documents or appraisals.
- Safe deposit boxes must be inventoried by the estate representative in the presence of an official of the financial institution before any items -- except wills and instructions -- can be removed.
- The return must be filed no later than nine months from the date of death. Late filings incur a penalty of 25 percent of the tax due or $1,000, whichever is less.
- It is strongly suggested that you contact a lawyer or accountant to determine if and when you need to file Pennsylvania Inheritance Tax and to assist you with the filing.
Nancy Cross is a certified paralegal who has worked as an employee benefits specialist and counseled employees on retirement preparation, including financial and estate planning. In addition to writing and editing, she runs a small business with her husband and is a certified personal trainer with the Aerobics and Fitness Association of America (AFAA).
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