Pennsylvania has made the following changes to the tax laws for the 2018 tax year:
- Taxpayers can now donate some or all of their income tax refund to the Pediatric Cancer Research Fund.
- Clarifying instructions were added regarding the deductible amount of contributions to Pennsylvania ABLE Savings Program Accounts.
- PA Schedule UE has been revised to include lines for reporting actual vehicle expenses as well as recording the Sales Tax License number when utilities are included in home office expenses.
- PA Schedule B was revised to include lines for reporting repatriated foreign income.
- PA Schedule E was revised to include additional questions and requests for information regarding Sales Tax License number, the property being rented, for how long and if it was located in Pennsylvania. Also, a line was added to require a net profit or loss from short-term rentals.
- PA Schedule SP for Tax Forgiveness has added a tip for first time filers and for those with dependents.
- The Use Tax instructions were advised for line 25 of the PA-40. Also, businesses are now required to withhold sales tax on internet purchases and/or report those purchases to the department. PA has also revised the use tax worksheet to remove the line for reporting use tax on commercial use of utilities billed as residential utilities.