2344 West Ingomar Road Pittsburgh, PA 15237-1619
Earned Income Tax Collector: Donna Roche (Ext. 304)
Earned Income Tax Clerical Assistant: Mary Jo LeDonne (303)
Office Hours: Monday - Friday 8:00 a.m. to 4:30 p.m.
 

Under Borough Ordinance No. 48-66 an Earned Income Tax of 1% is levied on the gross earned income of residents. 1/2% of this tax goes to the Borough and 1/2% to North Allegheny School District. Earned Income is construed as income received as wages, or income from a business, profession or farming. It does not include interest or dividends received.

The tax is due quarterly, during the months of April, July, October and January for quarters ending on the last day of March, June, September and December respectively. Forms are mailed to residents early in the "due" months for use in paying tax on actual or estimated earnings for the previous quarter. In January, the fourth quarterly payment is due. The WT-40 form is due by April 15th along with proof of earnings for the year.

Exemption of quarterly payments are only for taxpayers earning $5000.00 or less, which they may chose to pay when filing the final return. Earned income tax payers must still file even if there was no income for that year to keep their employment record up to date.

Every employer with a place of business in Franklin Park must deduct wage tax from employees who are residents of the Borough. Some employers voluntarily withhold from residents who are employed outside the Borough. If tax is not withheld, it is your obligation to remit 1% of the gross earnings quarterly. All returns must be verified with proof of earnings at years end. You owe 1% tax only on earnings received during your residency in the Borough of Franklin Park.

IMPORTANT EARNED INCOME TAX CHANGE FOR 2009
PA Act 32 of 2008, which amends Act 511 of 1965 (the "Local Tax Enabling Act"), changes the way business losses are treated. In the past, taxpayers filing a local earned income tax return were permitted to deduct a loss from an unincorporated business (for which services are rendered) against earned income (such as wages). This offset was allowed based on the PA Supreme Court decision in the O'Reilly vs. Fox Chapel School District case, decided March 16, 1989. Alternatively, a taxpayer could not offset losses from one business against profits from another, as decided in the Aronson vs. City of Pittsburgh case (Pa. Cmwlth. 1985).

Effective with tax year 2009, pursuant to PA Act 32, business losses cannot  be used to offset earned income. A loss from one business, however, can be used to offset net profits from another business. Tax returns will be modified to reflect this change.

Please see examples below, which are taken from the "Frequently Asked Questions" section of the PA Governor's Center for Local Government Services webpage on Act 32:
 
 * If  a taxpayer has a $40,000 net loss from a business selling garden supplies and $20,000 of earned income from his job at the local grocery store, the business loss may not be used to offset his earnings and so taxes will be due on the full $20,000 of earned income.
 * If a taxpayer has a net loss of $30,000 from a business selling garden supplies and a net profit of $50,000 from a business selling used cars, and earned income of $60,000 from his job as an accountant, the taxpayer's local income tax liability will be based on $20,000 of net profits and $60,000 of earned income because the taxpayer can offset one business loss against the second business profit.
 * If a taxpayer has a net loss of $50,000 from his garden supply business, a profit of $30,000 from his used car business and income of $60,000 from his job as an accountant, the taxpayer's local income tax liability will be based on $60,000 of earned income. The loss from the first business may be used to offset the gain from the second but the net loss from the combined businesses cannot be used to offset earned income.

To see the complete Resolution No. 968-2009/Page 17 No. W click the EIT Rules and Regulations.

Click Here to View or Download EIT Rules and Regulations

Click Here to View or Download EIT Resident Quarterly Form

Click Here to View or Download Employer Quarterly Form

Click Here to View or Download WT-40 Form