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stefan_stefanov_
New Member

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

for more details see Section 402 definitions from PA Tax Act 511
https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1965/0/0511..HTM
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re2boys
Level 9

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

Per this tool:  https://apps.irs.gov/app/IPAR/endsession/IPAR_1/en-US?user=guest&cancelURI=%2finvestigate%2fIPAR_1%2...

it appears that you can not deduct an occupation tax.  The result implies that it may have been deductilbe as an occupational expense subject to the 2% limitations similar to the 2% unreimbursed employee business expense in the past but that deduction is not allowed for 2018 per the 2017 tax reforms.

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4 Replies
re2boys
Level 9

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

Per this tool:  https://apps.irs.gov/app/IPAR/endsession/IPAR_1/en-US?user=guest&cancelURI=%2finvestigate%2fIPAR_1%2...

it appears that you can not deduct an occupation tax.  The result implies that it may have been deductilbe as an occupational expense subject to the 2% limitations similar to the 2% unreimbursed employee business expense in the past but that deduction is not allowed for 2018 per the 2017 tax reforms.

View solution in original post

stefan_stefanov_
New Member

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

Thank you for the answer but I think that tool is for Federal taxes not State ones which this "Occupation tax" is I believable, because in it's description said to not to be mistaken with the occupational one.
 "Occupation tax."  A tax based upon an assessed valuation of
     a particular trade, occupation or profession. The term includes
     a tax imposed on a flat rate on all trades, occupations or
     professions. The term does not include a tax upon persons
     employed in a taxing district, commonly known as an occupational
     privilege tax.
:(
re2boys
Level 9

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

The PA local occupation tax was deductible as a misc deduction subject to 2% limitations of a federal return, provision is now defunct. The tool is to determine if that SALT  can be deductible on a federal return. It is NOT deductible on a PA state return at all.  Thus, your question was where to report. The answer is --nowhere.
stefan_stefanov_
New Member

Where should I report the "Occupation tax" I paid last year? I am talking about the "Occupation tax" from PA Tax Act 511 which is different than the Occupational tax?

Thank you for the clarification.
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