Pennsylvania Employment Incentive Payments Credit (Form and Instructions)

Employment Incentive Payments Credit (Form and Instructions)
PA Schedule W - Employment Incentive Payment Credit (PA-40 W)
PA SCHEDULE W

6000019105

TAX YEAR ENDINGMM/DD/YYYY

Employment Incentive
Payment Credit

(Month
PA-40 W (EX+) 09-19 (FI)
PA Department of Revenue

Business Name

Year)

Corporation Tax Number

Revenue ID Number

SECTION I

Day

(INCLUDE WITH YOUR PENNSYLVANIA RETURN)

Federal Employer Identification Number

Social Security Number

EMPLOYMENT INCENTIVE PAYMENT CREDIT

Lines 1 through 18 are no longer applicable. See the instructions.

SECTION II

CALCULATION OF CREDIT

19b. Amount of carryover credit available from previous year’s return

19b.

19. Total available Employment Incentive Payment Credit for present tax year.
Enter the amount from Line 19b.

19.

20. Tax Liability
I. If filing Individual Income Tax return, enter amount from PA-40, Line 12.
II. If filing Fiduciary Income Tax return, enter amount from PA-41, Line 12.
III. If corporation filing form RCT-101, enter amount from Page 2, Section B, Line 15.
IV. If other organization, enter appropriate tax liability before application of credit on tax return.

20.

21. Other Credits against tax liability
I. If filing Individual or Fiduciary Income Tax return, enter amounts (if any) from PA-40 or PA-41;
(a) Line 22, PA-40 or Line 15, PA-41– taxes paid by PA residents
to other states

21a.

(b) Line 21, PA-40 – Tax Forgiveness claimed on PA-40 Schedule SP

21b.

(c) Total – If none, enter “0”.

21c.

or) II. If corporation, enter amount of Neighborhood Assistance Credit. If none, enter “0”.

21d.

22. Tax Liability to which credit may be applied (Subtract Line 21c or 21d from Line 20.)
If zero or less, enter “0”.

22.

23. Maximum allowable credit (Multiply Line 22 by .90.)

23.

24. Total credit to be allowed for present tax year. Enter lesser of Line 19 or 23.

24.

25. Amount of Employment Incentive Payment Credit available for use in subsequent years
(Subtract Line 24 from Line 19.) If none, enter “0”.

25.

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Pennsylvania Department of Revenue

Instructions for PA-40 Schedule W

Employment Incentive Payment Credit

PA-40 W IN (EX+) 09-19

GENERAL INFORMATION
VERIFYING THE EXISTENCE OF THE CARRYOVER
CREDIT AMOUNT
The Department will verify the amount of each carryover
credit claimed. To utilize any carryover credit in a subsequent
tax year, a complete copy of Schedule W must be provided
for the most recent tax year when an Employment Incentive
Payment Credit was previously utilized.

SECTION I
EMPLOYMENT INCENTIVE PAYMENT CREDIT
Section I of the PA Schedule W, Employment Incentive
Payment Credit, is no longer applicable because the credit
is no longer able to be awarded. The last credits awarded
were for tax years beginning before Jan. 1, 2010. Although
the credit can no longer be awarded, there may be unused
credits in existence that can be carried forward and used for
tax years beginning before Jan. 1, 2020. Therefore, Lines 1
through 19a of the previous version of the form are no longer
required and the form and instructions were revised to only
include the Section II section of the form and the instructions
for those lines.

SECTION II
CALCULATION OF CREDIT

LINE 19b
Amount of Carryover Employment Incentive Payment Credit
available from previous year’s return.
Include a copy of Schedule W for the most recent tax year
in which an Employment Incentive Payment Credit was
previously utilized that includes an amount on Line 25.

LINE 19
Total available Employment Incentive Payment Credit for
present tax year—Enter the amount from 19b. Also, the
amount of each partner’s or shareholder’s pro rata
distributive share of the partnership or PA S corporation’s
credits reported to them on their RK-1 or NRK-1 should be
entered here.

I.

Amount from Line 12 of PA-40, if filing individual
income tax return.

II. Amount from Line 12 of PA-41, if filing fiduciary
income tax return.
III. Amount from Page 2, Section B, Line 15 if corporation
filing form RCT-101.
IV. Amount of tax liability before application of any credit
on tax return, if organization is filing return other than
specified in I, II, or III.

LINE 21
OTHER CREDITS
I. Enter total amount of personal income tax credits:
a. From Line 22 of the PA-40 or Line 15 of the PA 41;
b. From Line 21 of the PA-40;
c. Total of Lines a and b; or
II. Enter the amount of Neighborhood Assistance Credit if
corporation has qualified for same.

LINE 22
Liability to which credit may be applied. Subtract Line 21c or
Line 21d from Line 20 and enter total. If zero or less, enter
“0”.

LINE 23
Maximum allowable credit. Multiply Line 22 by .90 and enter
total.

LINE 24
Total credit allowed for present tax year. Enter lesser of Line
19 or Line 23 here and on appropriate Pennsylvania tax
return or report.

LINE 25
Amount of Employment Incentive Payment Credit available
for use in subsequent years. Subtract Line 24 from Line 19.
If none, enter “0”.

LINE 20
Tax Liability. Enter one of the following:

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