TAXPAYER ANNUAL

LOCALEARNEDINCOME TAXRETURN

A.GeneralInstructions

INSTRUCTIONS

1. WHENTOFILE: IfyoufileaFederalorStateApplicationforExtension,checktheextensionboxonlineoronthe frontoftheformandsubmitalongwithyourestimatedpayment.Ifyouuseaprofessionaltaxpreparer,confirmthatthetaxpreparer timelysubmitsyourfinalreturn.

2. WHERETOFILE:Remit to e-Collect+, LLC at 804 Fayette Street, Conshohocken, PA 19428

3. EFFECTIVEDATES:January1throughDecember31,unlessotherwisenotedonyourlocalearnedincometaxreturn.

4. AMENDED RETURN: IftaxpayeramendstheFederalincometaxreturn,taxpayermustaccordingly amendandre-filethelocal earnedincometaxreturn.

5. RECEIPT/COPY:Yourcancelledcheckoronlineconfirmationissufficientproofofpayment.

6. PENALTY, INTEREST & COST OF COLLECTION: Ifforanyreasonthetaxisnotpaidwhendue,penaltyandinterestwillbecharged. Lateorincorrect filing/paymentmayresultinadditionalcostsofcollection. A copy of cost of collection fee schedule is available upon request.

7. ROUNDOFFCENTStothenearestwholedollar.Donotincludeamountsunder50cents.Increaseamountsfrom50to99centsto thenextdollaramount.

8. USEBLACKORBLUEINKONLYwhencompletingform.

9. Resident PSD Code - The DepartmentofCommunityandEconomicDevelopment(DCED)providesawebpagefortaxpayerstolocatetheirPSDcodesandother taxrateinformationat

B.Regulations/LinebyLineInstructions

LINE1:GROSSEARNINGSFORSERVICESRENDERED

Documentation Required: EncloseFormsW-2,1099andanyotherformindicatingcompensationreceived(submiteachW-2 and1099onaseparatesheet).

TAXABLE INCOME INCLUDES: Salaries, Wages, Commissions, Bonuses, Tips, Stipends, Fees, Incentive Payments, EmployeeContributionstoRetirementAccounts,Compensation DrawingAccounts.Ifamountsreceivedasadrawingaccount exceed thesalaryorcommission, thetaxispayable ontheamount received. Iftheemployee subsequentlyrepaystothe employeranyamountnotinfactearned,adjustthetaxaccordingly.Benefitsaccruingfromemployment,suchas:annualleave, vacation,holiday,separation,sabbaticalleaveandcompensationreceivedintheformofpropertyshallbetaxedatitsfairmarket valueatthetimeofreceipt. Jurydutypay,payments received fromweekend meetings (unittrainingassembly) forNational GuardorReserveUnits,sickpay(ifemployeereceivedaregularsalaryduringperiodofsicknessordisabilitybyvirtueofhis agreementofemployment),andtaxesassumedbytheemployer.Taxpayershouldreferto thePA DepartmentofRevenue regulationsregardingtaxablecompensation. Thislistisnotexhaustive;contactyourprofessionaltaxpreparerorlocalearned incometaxcollectorifyouhaveanyquestions.

NON-TAXABLE INCOMEINCLUDES: SocialSecurityBenefits,Unemployment Compensation, pensions,PublicAssistance, deathbenefits,gifts,interest,dividends,boardingandlodgingto employeesfor convenienceofemployer,lotterywinnings, SupplementaryUnemployment Benefits(subpay),capitalgains(capitallossesmaynotbeusedasadeductionagainstother taxableincome.),disabilitybenefits(periodicalpaymentsreceivedbyanindividualunderadisabilityinsurance plan),active militaryserviceoutsideofPAincludingannualtraining,personaluseof companycars,cafeteriaplans,andclergyhousing allowance.Someformsofpaymentsfromindividualretirementprograms,suchasKeogh,TaxShelterAnnuity,IRA,and401K arenottaxable.TaxpayershouldrefertothePADepartmentofRevenueregulationsregardingtaxablecompensation.Thislist isnotexhaustive;contactyourprofessionaltaxpreparerorlocalearnedincometaxcollectorifyouhaveanyquestions.

LINE2:ALLOWABLEUNREIMBURSEDEMPLOYEEBUSINESSEXPENSES

DocumentationRequired:PennsylvaniaformPA-UEmustbeenclosed(legiblephotocopiesareaccepted).

LINE3:OTHER TAXABLE EARNEDINCOME:Include income from work or services performed, which has not been included on line 1 or line 5. Do not include interest, dividends or capital gains.

LINE4:TOTALTAXABLEEARNEDINCOME:Subtractline2fromline1andaddline3.

LINES5and6:NETPROFITS/NETLOSSESFROMBUSINESS:Useline5forprofitandline6forloss.

Documentationrequired:1099(s),PAschedulesC,E,F,orK-1mustbeenclosed(legiblephotocopiesareaccepted).

Rule:AtaxpayermayNOToffsetabusinesslossagainstwagesandothercompensation(W-2earnings--line1)."Pass- through"incomefromanS-Corporation isNOTtaxableandlossisnotdeductible.Ataxpayermayoffsetalossfromone businessentityagainstanetprofitfromanotherbusinessentity.

LINE7:TOTALTAXABLENETPROFIT:Subtractline6fromline5;iflessthanzero,enterzero.

LINE8:TOTALTAXABLEEARNEDINCOMEANDNETPROFIT:Addlines4and7.

LINE9:TAXLIABILITY:Multiplyline8by1%.

LINE10:EARNEDINCOMETAXWITHHELD:YoumayclaimcreditforlocaltaxwithheldasshownonyourW-2form,butonlyuptothe amountofyourlocaltaxliabilityasshownonLine9ofthisreturn.Donotclaimentireamountoftaxwithheldifitisgreater thanthetaxliabilityforyourresidenttaxingjurisdiction,unlessitalsoexceedsthenon-residenttaxliabilitywhereyouwork(by lawyouremployermustwithholdthehighestratebetweenthePAjurisdictionwhereyouresideandthePAjurisdictionwhere youwork).

LINE11:QUARTERLY ESTIMATEDPAYMENTS/CREDITS FROMPREVIOUSTAXYEAR:Listanyquarterlyestimatedpayments madetodateforappropriatefilingyear.Donotincludeanypenaltyandinterestamountsthatmayhavebeenmadewiththe quarterlypayments.Also,includetaxcreditfromtheprevioustaxyear.

LINE12:MISCELLANEOUS CREDITS

GeneralRulesApplicabletoLine12Credits:

(1) CreditsforincometaxespaidtootherstatesmustfirstbeusedagainstyourPennsylvaniastateincometaxliability;any creditremainingthereaftermaybeusedagainstyourlocalearnedincometaxliability.

(2) CreditsforincometaxespaidforwagetaxespaidtoPhiladelphiamaybetakendirectlyagainstyourlocalearnedincome taxliabilityforthosewagesactuallyearnedinPhiladelphia.

(3) Incalculatingyourcreditforincometaxespaidtoanotherstateortoapoliticalsubdivision,notethatthesameitemsof incomemustbesubjecttobothyourlocalearnedincometaxandtheout-ofstatetax.

(4) Nocreditforincometaxespaidtoanotherstateorpoliticalsubdivisionmayexceedyourtotallocalearned incometaxliability (including Philadelphia).

CreditforTaxesPaidtoOtherStates:Youmaytakeacreditbaseduponthegrossearningstaxedbothinanotherstateand inPennsylvaniathatisinexcessofPennsylvaniastatepersonalincometaxrate.THISCREDITWILLBEDISALLOWEDIFTHE NON-RESIDENTORFOREIGNUSSTATERETURNANDYOURW-2FORMSHOWINGSTATEINCOMETAXWITHHELDIS NOTPROVIDED.

Nocredits aregiven forstate incometaxespaidtostates thatreciprocate withPennsylvania. These statesare: Maryland,NewJersey,Ohio,Virginia,WestVirginiaandIndiana.

CreditforTaxesPaidtoPoliticalSubdivisions OutsideofPA:Youmaytakeacreditbaseduponthegrossearnings taxed in both another political subdivision and where you live in PA. THIS CREDITWILLBEDISALLOWEDIFTHEFOREIGNCITYRETURNANDORYOURW-2FORMSHOWINGCITYINCOMETAX WITHHELDISNOTPROVIDED.

CreditforTaxestoPhiladelphia: YoumayuseanywagetaxpaidtoPhiladelphia asacredittowardyourlocalearned incometaxliabilityonthesamewagestaxedbyPhiladelphia. Youmustcomplete theLocalEarned IncomeTaxReturn. ENCLOSEA COPYOFYOURW-2AND/ORVERIFICATIONOFTAXESPAIDWITHTHEFORMORCREDITWILLBE DISALLOWED. NorefundsorcreditswillbeallowedforanyoverpaymentmadetoPhiladelphia.Multiplywagesearnedand taxedinPhiladelphiabyyourlocaltaxrateandentertheamountonline12ofthetaxreturn. Yourcreditcannotexceedyour localtaxliability.

LINE13:TOTALPAYMENTSANDCREDITS:Enterthesumoflines10,11and12.

LINE14:REFUND: Iftax(line9)islessthanyourcredits(line13),enteramountofrefund.Ifyouhaveanoverpayment oftaxesin excessof$1.00,youmayelecttoreceivearefund,orreceiveacreditagainstthenextyear'staxliability.A1099willbe issuedtotheFederalGovernmentforanycreditorrefundinexcessof$10.00.

LINE15:CREDIT:Iftax(line9)islessthanyourcredits(line13)enteramountofcreditandchecktheapplicableboxforcreditto spouseorcredittonextyear.A1099willbeissuedtotheFederalGovernmentforanycreditorrefundinexcessof$10.00.

LINE16:AMOUNTOFTAXDUE:Iftax(line9)islargerthanyourcredits(line13),enteramountoftaxdue,iflessthan$1.00, ENTERZERO.

LINE17:INTERESTANDPENALTIES:Ifforanyreasonthetaxisnotpaidwhendue,interestandpenaltyoftheunpaidtaxfor eachmonthshallbeaddedandcollectedat the rate of one percent (1%) per month of the unpaid principal balance from the due date until payment is made. Returnsreceivedaftertheduedatemaybechargedadditionalcostsofcollection.

LINE18: Late Fee: (10% of Line 16 plus Line 17) plus an additional $45.

LINE19: TOTAL AMOUNT: Sum of lines 17 and 18.

Note:Allaccountsaresubjecttoauditandreview.LocalorcitycopyofW-2and/orsupportingschedulesmustbeenclosed withtaxreturn.

(SubmiteachW-2and1099ona separatesheet.)