Earned Income Tax and Residency Certification Information

Keystone Collections Group is the appointed Earned Income Tax (EIT) collector for all Chester County municipalities. Residents who are self-employed, who work out of state, or who work in Philadelphia, will continue to be responsible for making estimated quarterly EIT payments. Quarterly voucher forms, as well as other EIT return forms, are available at Keystone’s web site under Taxpayer Forms Download. 2015 tax returns will be due by April 18, 2016.

Click here for information how and when to file your annual EIT return with Keystone.

Earned income of less than $12,000 per year is exempt from Pocopson’’s EIT. However, employers must withhold the 0.5% up front, and then those who earned less than $12,000 may request a refund on their local tax returns the following year. The exemption, which mirrors that of the Local Services Tax, applies specifically to Pocopson. If you earn less than $12,000 but work in a municipality that does have an EIT, you will likely still be subject to their non-resident EIT rate on the full amount of your pay.

Act 32  requires that all Pennsylvania employers (with the exception of those in Philadelphia) withhold the local Earned Income Tax (EIT) for employees (effective January 1, 2012). Chester County was an early implementer of Act 32, so many Pocopson residents saw EIT withholding begin in January 2011.

Your employer may ask you to complete a Residency Certification form to identify the municipality for which the EIT is to be collected. The Residency Certification form include spaces for “Resident PSD Codes” (PSD = political subdivision code) and “Total Resident EIT Rate.”

Pocopson’s PSD code is 151105 
Pocopson’s Resident EIT Rate is 0.5% (or 1/2 of 1%) effective 1/1/2015

If the municipality in which you work has a higher EIT rate than Pocopson (most do), your employer will withhold at that higher rate. Keystone, as tax collector, will distribute the tax appropriately. For example: You work in West Goshen Township, which has a non-resident EIT rate of 1%, and earn $50,000/year. Your employer will withhold $500 for the year. Keystone will allocate $250 to Pocopson and $250 to West Goshen.

For EIT rates, PSD Codes and tax collector info for an address, use this link. For more information on Act 32, go to this link.