If box 14 says PA LST what do i choose for box 14 for the category that matches the total?

[sw33tharmon33]

The box is asking me to "review the drop down menu below to see if any of the categories match the dollar amount in box 14 of your W-2" I"m not sure if the letters next to the totals explain what categories I should be choosing.

[re2boys · Accepted solution]

The PA Local Services Tax is an employment related tax not based upon income amount.  Thus it is not a deductible local income tax.

In the past it could be deducted as a unreimbursed business expense and deducted as an itemized deduction subject to the 2% limitation.  However, with the 2017 tax reforms, one can no longer claim unreimbursed business expenses, thus, this tax is not deductible at all.

The maximum LST is $52 per individual per year.

[jastheimer]

that doesn't answer the question - what category do I choose??

[BillM223]

Since the LST is not a deductible tax, then you would use the category of Other, so TurboTax will not do anything with it (as it should not).

[QuintinaN2022]

Other State or Local Tax

[ErnieS0]

Use Other (not classified). The Pennsylvania Local Services Tax is not an employment-related tax based on income as Community member re2boys said. Therefore, it is not deductible on your federal return. That's why it's in Box 14, not in Box 19 of your W-2.

@QuintinaN2022 

[HappyHollow]

The PA LST is a fully deductible income tax. It just not a deductible EARNED income tax. It has no bearing on unreimbursed employee expenses etc. It should be placed under Local/Other taxes paid.

[Vanessa A]

Yes, you are correct.  The PA LST is a federally deductible tax for those who itemize their returns.  It falls under the exception to the general rule that allow for the deduction because it is used to pay for police and EMS services. Pub 17 Pg. 100