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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

A resident return is required to be filed when the taxpayer lives in a taxing municipality, regardless of which municipality they work in. While withholding on Form W-2 is required to be withheld at the higher of the nonresident tax rate of the working city, or the resident tax rate of the city in which they reside, the tax rate used on the return should be the resident city tax rate. If they work in a different municipality and the nonresident tax rate where the taxpayer works is higher than the resident tax rate of where the taxpayer lives, the application will automatically reduce the withholdings from the W-2 to match the tax calculated using the lower resident tax rate. A statement will print with the Local EIT Not Required statements to show the calculated reduction.

A nonresident return is required to be filed with the work city when the taxpayer lives out of the state of Pennsylvania but works in a taxing municipality within the state. If the taxpayer lives in a non-taxing city in Pennsylvania and works in a taxing city, a nonresident return is also required to be filed with the work city. The nonresident tax rate of the taxing city is used on the return.

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