What documentation is required to dispute a delinquent earned income tax notice? How do I submit the documents?

Documentation required to dispute a delinquent earned income tax notice varies from case to case. Review the criteria below to determine which documents are required for your specific situation. Taxpayers who meet any of the criteria can submit the required documents online using Keystone’s e-Pay. Access our uploading documentation FAQ for step by step instructions.

Local income tax withholding reported to a Pennsylvania community on a W-2

• Is “PA” shown in W-2 Box 15?
• Is local tax withholding indicated in W-2 Box 19?

If yes to both: send a legible copy of W-2 along with a copy of your delinquent notice

Local income tax withheld to an out-of-state taxing authority

• Is a state other than “PA” listed on your W-2 in Box 15?
• Is state income tax withholding indicated in W-2 in Box 16 (or local withholding in Box 19)?

If yes to both: upload a legible copy of your W-2, PA Schedule G-L and a copy of your delinquent notice

Note – Credit for income tax paid out of state is applicable only to income subject to tax in both states. Analysts will review your information and send you a notice indicating if your out-of-state credits satisfy your local tax liability.

Income reported on your state tax return may not be taxable locally because it represents:

• Non-taxable income from a qualified pension, 401(K) or IRA
  • Provide income documentation, such as 1099-R, 1099-MISC, W-2, etc.
  • Type of income taxable at the local level includes but is not limited to:
    • Early distribution from an IRA or 401(K)
    • Certain distributions from a non-qualified pension plan
    • Stock option income
    • Deferred compensation
• Active-duty military pay (provide copy of W-2 and Orders, Leave and Earnings Statement)
• Clergy housing allowance (provide copy of W-2)
• Third-party sick pay (provide copy of your W-2)
• Unearned passive income and/or unearned income from a Subchapter S Corp. (provide a copy of K-1 or RK-1)

If you did not live in the community for all or part of any year(s) listed on the delinquency notice:

• Submit the required documents to dispute the claim online using Keystone’s e-Pay or fill out the non-resident form on the back of the voucher and include acceptable proof of residency
• Acceptable proof of residency includes: deed, lease, utility bill or pay stub(s)

Taxpayers who meet the above criteria can submit the required documents to dispute a claim online using Keystone’s e-Pay. Access our uploading documentation FAQ for step-by-step instructions.