2018 School Income Tax Return General Filing Information

The School District of Philadelphia imposes a tax on different classes of net income.  Examples of taxable income are dividends, certain interest, certain
rents, and royalties.  All residents of Philadelphia who receive these types of income must pay the tax.
Who should file - Only Philadelphia residents with taxable income.  Review the instructions on Page 2 for a list of taxable income.
Interest on bank savings accounts, checking accounts and certificates of deposit issued by banks is not taxable.
If you were a resident of Philadelphia for only a portion of 2018, indicate your period of residency in the space provided on the return.  Certain taxable
income should be pro-rated based on your period of residency.  Fox example, if you owned a stock for the entire year and received a dividend of $1,000, but
moved to Philadelphia on July 1, 2018, only $500 of the dividend would be taxable.  If this was your only taxable dividend, you would enter $500 on Line 1 of
the tax return.
If income was realized on a specific date, your residency on that date will determine its taxability.  In the above example, if you had a short-term capital gain
(held six months or less) that was realized on June 1, 2018, none of that gain is taxable since you were not a Philadelphia resident on that date.  For further
information, contact the Technical Staff at   revenuetaxadvisors@phila.gov.
Filing status - A husband and wife may file a combined return.  However, losses from one spouse cannot be offset against gains from the other spouse.
   
Social Security Numbers - This return contains provisions for Social Security numbers.  If these spaces are blank, complete them.  Disclosure of Social
Security numbers is required pursuant to the provisions of Title 19 of the Philadelphia Code and regulations promulgated thereto.  Social Security numbers
are used to identify taxpayers and to ensure compliance of all City tax laws.  Social Security numbers are treated as confidential, except in the course of
Department of Revenue official business.
Change Form - If the preprinted information listed on the return is incorrect, use a Change Form to make the necessary corrections.  Find a Change Form
at   www.phila.gov/tax-change.  For example, if your spouse is deceased but the preprinted information pertains to your spouse, use a Change Form to
indicate your name and Social Security number.
When to file - This return is due on or before April 15, 2019.    Failure to file and pay by this date will result in the imposition of interest and penalty.
Where to file - Sign the return and mail to:  Philadelphia Department of Revenue, P.O. Box 389, Philadelphia, PA   19105-0389.
Internet Filing - To file this return online, go to  ework.phila.gov/revenue.   After submitting the return you must print the resulting confirmation page
for your records.
Payment of tax - If the tax due on Line 14 of the School Income Tax return is $1 or more, make a check payable to "City of Philadelphia".  Do not remit tax
due if less than $1.  Internet filers can pay the tax due via debit card, credit card or e-check.  A user fee is added of 2.45% when paying by credit card  and
$5.95 when paying by debit card. Paying by E-Check is   FREE.
To pay in person, come to the Municipal Services Building, Concourse Level, 1401 John F. Kennedy Boulevard.  Non-cash payments may also be made at
7522 Castor Avenue and at 2761 North 22nd Street (Hope Plaza).
ACH Debits and Credits are accepted for payment of tax.  For more information or to enroll in this program go to   www.phila.gov/tax-change.  Contact the

Returned Checks. If your check is returned unpaid for insufficient or uncollected funds, (1) you authorize The City of Philadelphia or its agent to make a
one-time electronic funds transfer from your account to collect a fee of $20; and (2) The City of Philadelphia or its agent may re-present your check
electronically to your depository institution for payment.
Termination of School Income Tax filing responsibility - If you no longer have income subject to School Income Tax, use a Change Form to indicate the
termination of School Income Tax filing responsibility.  If the School Income Tax filing responsibility terminated prior to 2018, mail a Change Form indicating
the date of termination but   do not complete and mail the 2018 School Income Tax return.  Find a Change Form at   www.phila.gov/tax-change.
Contact information:  Send e-mail to   revenue@phila.gov or call   215-686-6600.  Additional returns and the Change Form can be downloaded from
www.phila.gov/revenue in the "Tax Forms & Instructions" section and require Adobe Acrobat Reader.

                                                          Interest, Penalties and Costs

     Effective January 1, 2014 - All taxes (except Real Estate) bear simple interest.  The annual rate shall be the
     Federal Short-Term Rate effective January 1 of such calendar year (26 § USCA 6621 et. seq.) plus five (5)
     percentage points.

     Penalty will be at the rate of 1¼% of the unpaid tax for each month or fraction thereof.

     For current interest rates, see the Department of Revenue's website at   www.phila.gov/revenue.

                                                                                                                               2018 SIT Inst.  9-19-2018
                                                                   Page 1

            INSTRUCTIONS FOR PREPARING THE SCHOOL INCOME TAX RETURN
Read these instructions carefully to determine if you have income subject to the tax.  Income from Federal
Schedule "C" business income and W-2 income should not be reported on the School Income Tax return.

Beginning with tax year 2016, proceeds from the Pennsylvania Lottery are now taxable.
Any net losses on Lines 1 through 8 of the return should be entered as "0".  Losses may not be used to offset other types of income.
Print your numbers legibly and boldly within the spaces provided to ensure efficient and accurate processing of your return.  Photocopies of
this return are not acceptable.
Line 1.    All dividends are taxable unless they are a return of capital on a life insurance policy, from common stock of a National Bank, or from United
States government obligations.    All other dividends are taxable regardless of the source.  You cannot reduce this income by reinvested
dividends.
Line 2.  Interest income on the Federal or State tax return may be included.  Examples of taxable interest include, but are not limited to:  interest income
from securities, mortgages, private loans, insurance policies, bank notes, repurchase agreements, Fannie and Ginnie Mae obligations, and other
sources.
The following are examples of   non-taxable interest income:
           A.  Direct obligations of the Federal Government
           B.  Bonds or debt obligations of Pennsylvania or its political subdivisions
           C.  Interest on savings, checking, escrow and money market savings accounts that are deposited in:
                               1.  Private Banks                             4.  Credit Unions
                               2.  Building and Loan Associations            5.  Savings Banks
                               3.  Savings and Loan Associations             6.  Bank and Trust Company or Trust Companies
Line 3.  The distribution of income from a "Subchapter S" Corporation.  For more information see Worksheet "S" on   www.phila.gov/revenue.
Line 4.  The pro rata share of any limited partnership income not otherwise subject to Philadelphia Net Profits Tax is taxable.  If this is a net loss, enter
"0".
Line 5.  Income from estates and trusts is taxable only if it is received by or credited to the beneficiary and is the type of income that would normally be
subject to this tax.    For example, if the income from a trust consists of interest and dividends, the amount taxable would be determined as in
Lines 1 and 2 above.
Line 6.  Net gains and losses are taxable from the sale of tangible and intangible personal property and real property held for six months or less.    Note:   
This holding period differs from the 12 months or less period used by the Federal Government to identify short term capital gains.  If this is a
net gain, enter the gain on Line 6.  If this is a net loss, enter "0".
Line 7.  Net rental income received from the ownership of real or personal property is taxable unless the income is subject to Philadelphia Business
Income & Receipts and/or Net Profits taxes.  If this is a net loss, enter "0".  For School Income Tax purposes, report the net rental activity from a property
which meets all of the following three criteria:
           1.  It is the principal residence of the owner;
           2.  It is totally residential;
           3.  It consists of 3 rental units or less.

Owners of properties with 4 or more rental units must file the Business Income & Receipts and/or Net Profits tax returns.  Rental units do not
include the unit occupied by the owner.  (See BIRT Regulations Section 101 D. 8.).
Line 8.  Report the following income:  1) royalty or copyright, 2) an award of punitive damages, 3) the monetary value of any prize or award, 4)
income from any annuity under a policy of insurance unless payable from a contract of employment as a part of retirement or pension plan,
and 5) net proceeds from gambling (including Pennsylvania Lottery Cash Prizes).  If this is a net loss, enter "0".
Line 9.  Add Lines 1 through 8.
Line 10.  You may include all reasonable expenses directly incurred in the production of taxable income if they were paid solely for the
production of that income.  Examples of allowable expenses are:  1) safe deposit box rentals, 2) margin account interest, and 3) any fee paid
in 2018 for the preparation of the School Income Tax return.
Line 11.  Subtract Line 10 from Line 9.
Line 12.  Gross Tax Due.  Multiply Line 11 by 3.8809%.
Line 13.  Enter here any credits from prior years and/or tax previously paid.
Line 14.  TAX DUE.  If Line 12 is greater than Line 13, enter the tax due on Line 14 and in the "Tax Due" box of the payment coupon.
Line 15A.  If Line 13 is greater than Line 12, enter the amount of tax overpaid to be   REFUNDED.
                                                             
Line 15B.  If Line 13 is greater than Line 12, enter the amount of tax overpaid to be   APPLIED to the 2019 School Income Tax.
                                  For more on filing the School Income Tax Return go to   bit.ly/sitvideo.

                                                                                                                    2018 SIT Inst.  4-15-2019
                                                                      Page 2