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PA local EIT return with schedule C and 2 localities

John8290
Level 1

Does anyone know if there is any way to split income from schedule C between 2 different local taxing jurisdictions for the EIT returns?

 

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3 Comments 3
PA John
Level 1

EIT is filed for the city, town or borough where the taxpayer lives.  If the taxpayer lived in more than one location than split all income based on either days lived at each location or income earned during the time lived in each location.

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John8290
Level 1

Thank you for the response.

The issue here is that the client lived in one locality for 7 months and the other for 5. In order to get the local returns right I will have to create 2 different schedule C's, both of which will be wrong for federal and PA because they will only be for part of the year. 

 

I was wondering if there is a way to do this in Lacerte that doesn't involve having to make a copy of the return and/or doing the schedule c 3 different ways in screen 16.

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PA John
Level 1

I don't know Lacerte, I use proseries.  I would not create two schedule Cs.  There is a worksheet where you can allocate to both local returns.  You report 100% of income and than reduce it by the months not domiciled in each locality (you do the calculation manually).  

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