The Philadelphia Department of Revenue has issued a press release stating that resident personal income taxpayers with unearned income must file and pay the School Income Tax (SIT) every year. SIT is due at the same time as the personal federal income tax return, on April 15.
The release further clarified that unearned income includes, among other things, dividends from stocks, royalties, S-Corp distributions, gambling winnings including Pennsylvania Lottery cash winnings, some types of interest and capital gains from the sale of property (including stocks and bonds) held for less than 6 months. No SIT is due from interest earned on savings or checking accounts. Capital gains from government issued bonds are also exempt from the SIT. Funds collected through the SIT go directly to the School District of Philadelphia. SIT makes a big difference to the success of public school students across Philadelphia. Taxpayers are urged to file and pay SIT through the Philadelphia Department of Revenue’s eFile/ePay website. Taxpayers may also choose to file a paper return and mail it to the Department with their payment. The release also contains an informative video with line-by-line instructions to file SIT.
The full text of the press release is available at https://www.phila.gov/2019-03-13-school-income-tax-time-to-make-the-grade/. Press Release, Philadelphia Department of Revenue, March 13, 2019
