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Instructions for PA W-2 RW
PA-40 W-2 RW IN (EX) 12-22 Interest Income
GENERAL INFORMATION GENERAL INSTRUCTIONS
PURPOSE OF SCHEDULE Column A reconciles the amount of federal wages in Box 1
Use the PA W-2 RW to provide supplemental information of the W-2 to the amount of Medicare wages reported in
regarding amounts reported on federal Form W-2, Wage Box 5 of W-2. Include those items of compensation, such
and Tax Statement, so that the department may reconcile as various types of retirement plan deferrals and any other
items of compensation that are not included in federal
the wages to determine if the proper amount of gross com-
wages but are included Medicare wages in Section II of the
pensation income is reported for Pennsylvania personal
W-2 RW. Include those items of compensation included in
income tax purposes. The W-2 RW may also be used to federal wages that are not included in Medicare wages in
provide additional information regarding nonqualified Section III of the W-2 RW.
deferred compensation distributions previously taxed.
Column B reconciles federal wages in Box 1 of the W-2 to
Pennsylvania wages in Box 16 or to what Pennsylvania
RECORDING DOLLAR AMOUNTS
wages should be (for wages earned by a Pennsylvania res-
Show money amounts in whole-dollars only. Eliminate any ident outside the state or by nonresidents). Include those
amount less than $0.50 and increase any amount that is items of compensation, such as various types of retirement
$0.50 or more to the next highest dollar. plan deferrals and any other items of compensation that
are not included in federal wages but are included
Pennsylvania wages in Section II of the W-2 RW. Include
WHO MUST COMPLETE
those items of compensation included in federal wages that
The W-2 RW must be completed by taxpayers when the are not included in Pennsylvania wages in Section III of the
amount shown as Medicare wages in Box 5 of the W-2 are W-2 RW.
greater than Pennsylvania wages shown in Box 16 and Column C reconciles Medicare wages in Box 5 of the W-2
there is insufficient information included on the W-2 to rec- to Pennsylvania wages in Box 16 or to what Pennsylvania
oncile the wages without the additional information repre- wages should be (for wages earned by a Pennsylvania res-
sented on the W-2 RW. The W-2 RW must also be complet- ident outside the state or by nonresidents). Include those
ed when a PA resident taxpayer works in another state and items of compensation, that are not included in Medicare
Pennsylvania tax is not withheld from the wages when wages but are included Pennsylvania wages in Section II of
the W-2 RW. Include those items of compensation included
insufficient information is included on the W-2 to adjust the
in Medicare wages that are not included in Pennsylvania
wages to the amount of world-wide wages a Pennsylvania wages in Section III of the W-2 RW.
resident would be subject to using Pennsylvania personal
income tax rules. NOTE: The most common differences between fed-
eral, Medicare and Pennsylvania wages are included
on Lines 1 thru 8 and Lines 10 thru 17. Other additions and
SCHEDULE INSTRUCTIONS
subtractions not listed may be reported on Lines 9 and 17,
IDENTIFICATION INFORMATION respectively.
NAME OF TAXPAYER ON W-2 IMPORTANT: If including the W-2 RW with a PA-40,
Enter the name of the taxpayer shown on the W-2. Personal Income Tax Return, all three columns of the
W-2 RW must be completed.
SOCIAL SECURITY NUMBER
Enter the Social Security number (SSN) of the taxpayer
LINE INSTRUCTIONS
shown on the W-2.
EMPLOYER’S IDENTIFICATION NUMBER SECTION I
Enter the federal employer identification number from Box STARTING POINT
b of the W-2 for the employer whose wages are being rec- Enter the amount of federal wages from Box 1 of the W-2
onciled. in the space above the headings for Columns A and B.
www.revenue.pa.gov PA-40 W-2 RW 1
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