Although the School income tax has been in force for at least the last 30 years, it often is ignored by taxpayers and at times, the City.

Based upon a few recent calls, it is a good time to review the Philadelphia School District’s School Income Tax (Form S-1).  The enforcement of this unpopular tax on City Residents tends to reappear after a prolonged period of hibernation.

Usually the resurgence coincides with a time when the School District has budget issues. If you are a City resident you should be filing Form S-1 annually. We suggest filing even when the liability is zero so the statute of limitations begins to run. There is no statute running on an unfiled tax form.

The S-1 taxes certain investment income such as some classes of interest; dividends; short term capital gains(Less than 6 months); rents and pass thru income from partnerships and S Corporations.

(.038907 is the tax rate or $389.07 per $10,000 of taxable income)

If you recently relocated to Philadelphia, you should be aware of this additional income tax.

If you aren’t filing, you should start. Why run the risk of receiving a letter 3-4 or 5 years from now and paying taxes, plus years of penalties and interest?

Stan Wielgus, CPA

swielgus@stephanoslack.com

610-710-4052

Visit Stephano Plus