Is the split of jointly owned income resulting in a error in calculating your PA income tax??? PA calculates the income tax on a per person basis, printing out separate Schedules allows each person to follow how their PA income tax is calculated and for the income tax laws to be implemented correctly. For example, PA does not allow the capital gains from one person to offset the losses incurred by their spouse. Nor can the gains from rental property activities be used to offset losses by their spouse. Each person's PA personal income tax must be calculated independently of the other person, following the PA income tax laws. To quote from the PA instructions: Joint Income - Joint Returns
Married taxpayers can file a joint tax return for convenience only. If you
and your spouse jointly own income-producing property, you must each
report your share of the income (loss). Income-producing property
includes savings accounts, businesses, securities, and real estate.
Spouses usually equally divide income from jointly owned property.
