Form PA-40

• Regardless of whether you live in Pennsylvania or not, the state requires anyone who receives income from Pennsylvania sources, such as employment wages from a company within the state, in excess of $33 to file a state income tax return on form PA-40. This is the main form where you report your Pennsylvania taxable income; even if the end result is that you don't owe Pennsylvania income tax. But this may not be the only form you send to the Department of Revenue.
  
  

PA Schedule A

• For Pennsylvania taxpayers who earn more than $2,500 of taxable interest income during the tax year, a PA Schedule A must accompany your state tax return. In addition to the ordinary interest payments, such as earnings from a savings account or bond investments, the state requires you to report the distributions you take from a health savings account that you fail to use for qualified medical purposes. You must also report the withdrawals you make from tax-free 529 education plans if you use the funds for purposes other than the education expenses of the account's beneficiary.
  
  

PA Schedule E

• The Schedule E attachment to your Pennsylvania tax return serves a similar purpose as the federal Schedule E for reporting the income and deductions from your rental activities during the year. The schedule requires you to report the location of each rental property you own, regardless of which state it's in. The form further requires you to report the gross amount of rental income you earn during the year before listing each of your expenses. Some of the rental expenses the state allows you to deduct include commission payments, fees to advertise the rental, cleaning and maintenance, personal car expenses for driving that relates to the properties, insurance, mortgage insurance and interest and the cost of making repairs.
  
  

W-2 Forms

• If you earn employment income during the year that is not subject to Pennsylvania income tax, the amounts on your W-2 forms will not match amounts you report as being taxable in Pennsylvania. In this case, in addition to filing the state copy of your W-2 form or a legible photocopy of it, you must draft a note that explains why the total earnings on your W-2 are different than the taxable income you report on your state tax return.