Local Income Tax in Pennsylvania - What qualifies as Earned Income?

user17673716559 · ‎January 02, 2026

I am a resident of Upper Makefield Township in Pa which has a 1% tax on Earned Income. Would payments from an Unqualified Pension Plan be considered Earned Income? The information I have found on line is not conclusive and I am having trouble getting a definitive answer on this. And neither the township or the tax collector has been of help.

Thanks.

Bsch4477

Pension plan income is not earned income.

xmasbaby0

@user17673716559 And...to make sure you know---TurboTax does not prepare local tax returns for PA. You are on your own to obtain the forms from your local taxing authority and prepare your local return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**