I have a few questions about the local income tax return for PA and thought this would be the best place to ask.
If you don't know the specifics, any general guidelines for my questions would be much appreciated, because unfortunately I cannot find specific instructions for the form besides https://keystonecollects.com/download/ITRInstructions.pdf which are not very detailed.
I am filling out the W2 and put in my W2 gross income. There is another section that asks for "Other Taxable Income" which you have to declare yourself without any forms to input. I have some sources of income that I would like to clarify:
1. I have rental properties that I rent. I received gross income from this activity, but in the end I cam out with a loss. When I declared this in my federal and state taxes, which go into detail, it correctly reported that I came out with a loss. But what do I do in the local return where this is no where to go into this details. Do i just not report it as income at all (I do not believe I can put in negative income)?
2. I sold a rental property this year. Again, when I reported in the federal and state returns, it went into the details and even though on the 1099-S form I received it reported I received the sale price of the house, on the federal and state returns the amount was much less after taking out the original purchase price, etc. On my federal return, this amount was reported as capital gains. In the instructions for the local income tax return I linked to above, it specifically says that capital gains are not considered taxable income for the purposes of the local return. So I am assuming I do not have to mention this on my local return at all. Am I correct? If I do have to, how much do I report, the 1099-S amount or the amount after original purchase price, etc.?
3. I received a 1099-G refund for local income taxes withheld that should not have been withheld. Is this taxable income for local income tax purposes? I am assuming not, as I this was money owed to me that was unfairly withheld, not money I earned during the course of employment. Am I correct?
Thank you for your help.
