1040-PA: Political Subdivision (PSD) codes and taxing authority city code setup

Show expandable text

New (tax) year, new help!

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.

Taxing authority city code setup

You can create up to 900 user-defined cities for purposes of completing the Local Earned Income Tax return. Each city is assigned a numeric code in the range of 101 to 999 as well as the alphabetic code PGH (Pittsburgh) that determines the taxing municipality for the Local EIT return. A taxing authority city code is required on Screen PAEIT in order to create a Local EIT return.

Predetermined local earned income tax return defaults that are associated with the six-digit Political Subdivision (PSD) codes are included in the setup. To set-up a user defined city, follow the steps below:

  1. Choose Setup > 1040 Individual > Pennsylvania tab > Local cities.
  2. Click the Add button.
  3. Enter a City code in the range of 101 to 999, or PGH.
  4. Enter, or select from the drop-down menu, a PSD code for the proper taxing municipality.

Upon entry, the default information for the taxing municipality will populate the rest of the setup screen. Note that the default PSD Code information can be overwritten.

For detailed information on the fields in this dialog, see 1040-PA Local Cities setup dialog.

Notes:
  • There is an option to print a listing of PSD codes that are already associated with city codes entered. In the Local cities dialog, click the Print button found in the lower left-hand corner to open the Print City Information dialog. In this dialog, mark the checkbox next to the item(s) you want to print, or click the Select All button to select all items. You can also specify the sorting order for the items in the report by selecting an option in the Sort by group box.
  • There is an option to sort the PSD code and City code views alphabetically (PSD Code in PA local Cities Setup and City Code in Ultra Tax). In the Local cities dialog, click the Other EIT Options button found in the lower middle section of the window to open the Other EIT Options dialog.

Determining the PSD code

Political subdivision (PSD) codes are six-digit numbers that uniquely identify each taxing authority in the State of Pennsylvania. If you do not know the PSD code that is associated with the municipality, follow the steps below:

  1. Within Pennsylvania input screens, select Help > Tax Subject Index (or the Tax Subject Index icon found on the toolbar).
  2. Select the Web Form Instructions radial button.
  3. Select the PSD code and tax rates based on home and work addresses link.
  4. Select Go to.
  5. Enter the home address and work address of the employee.
  6. Select View information to review or print the local withholding tax rates and PSD codes for both the home and work addresses entered.

Related articles 1040 Pennsylvania frequently asked questions

Was this article helpful?

Thank you for the feedback!