When am I required to send in a copy of my PA-40 to support my return?

Earned income tax is assessed on earned income and net profits. Earned income matches, with very few exceptions, compensation taxable at the state level. Similarly, taxable net profits match except for passive or investment net profits, such as those of a subchapter S corporation. The Tax Officer may request your PA 40 to verify the income or credit figures you report on your local earned income tax return.