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rogalts
New Member

Where do I enter occupational tax. I pay $490 a year in occupational tax to Dauphin county PA. Every person who works in PA has to pay occupation tax.

 
2 Replies
re2boys
Level 9

Where do I enter occupational tax. I pay $490 a year in occupational tax to Dauphin county PA. Every person who works in PA has to pay occupation tax.

You can deduct occupational taxes as an itemized deduction, misc. deduction subject to the 2% limitation.  From Pub 17, page 200:

Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you can't claim them as a deduction for taxes elsewhere on your return.

By the way, while this archaic tax is still on the books in PA, it is rather rare.  I've lived in PA for 13 years and do not pay any such tax.  A search of this site:  http://munstats.pa.gov/Reports/ReportInformation2.aspx?report=taxes_Dyn_Excel

shows relatively few municipalities collect this tax.  In my county, only one borough has this tax on the books.

daguido
New Member

Where do I enter occupational tax. I pay $490 a year in occupational tax to Dauphin county PA. Every person who works in PA has to pay occupation tax.

Not sure why this person says it is archaic and not often collected.  This tax has been collected every year I have worked for the past 30 plus years.  I live in Allegheny County and work in Butler County.  Allegheny County has collected this tax for many many years.  Butler County did not until around 2009-2010.  But now they also collect it, it may be listed as Local Service Tax now.

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