{"id":6117,"date":"2018-08-06T15:37:33","date_gmt":"2018-08-06T19:37:33","guid":{"rendered":"http:\/\/resources.evans-legal.com\/?p=6117"},"modified":"2018-08-06T15:37:33","modified_gmt":"2018-08-06T19:37:33","slug":"new-pennsylvania-income-tax-withholding","status":"publish","type":"post","link":"https:\/\/resources.evans-legal.com\/?p=6117","title":{"rendered":"New Pennsylvania Income Tax Withholding"},"content":{"rendered":"<p>The <a href=\"http:\/\/www.legis.state.pa.us\/cfdocs\/Legis\/LI\/uconsCheck.cfm?txtType=HTM&amp;yr=2017&amp;sessInd=0&amp;smthLwInd=0&amp;act=0043.\">Act of October 30, 2017, No. 43, P.L. 672<\/a>, amended the <a href=\"http:\/\/www.legis.state.pa.us\/cfdocs\/legis\/LI\/uconsCheck.cfm?txtType=HTM&amp;yr=1971&amp;sessInd=0&amp;smthLwInd=0&amp;act=002&amp;chpt=03\">Tax Reform Code of 1971<\/a> by adding new requirements for the withholding of Pennsylvania income tax from payments of Pennsylvania source income to nonresidents, and the Department of Revenue has recently published some guidelines regarding the new rules in its bimonthly newsletter,\u00a0<a href=\"https:\/\/www.revenue.pa.gov\/GeneralTaxInformation\/News%20and%20Statistics\/TaxUpdate\/Documents\/DPO-04%2007-18%20Tax%20Update%20197.pdf\">&#8220;Tax Update&#8221; (No. 197, June\/July 2018)<\/a>, and <a href=\"https:\/\/www.revenue.pa.gov\/GeneralTaxInformation\/Tax%20Types%20and%20Information\/NonresidentWithholding\/Pages\/default.aspx\">on its website<\/a>.\u00a0 Although the Department of Revenue describes these new withholding rules in very broad terms, it appears that these new rules do <span style=\"text-decoration: underline;\"><em>not<\/em><\/span> apply to distributions from estates and trusts to nonresident beneficiaries.<\/p>\n<p>Specifically, the Act adopted new withholding rules for the following:<\/p>\n<ul>\n<li>Payments of Pennsylvania source income for which a Form 1099-MISC is required.\u00a0 (See new Code \u00a7 316.2, added by Act \u00a7 13.)\u00a0 This would include payments made in the course of a trade or business for things like non-employee compensation for services performed in Pennsylvania, or royalties paid for mineral interests in Pennsylvania.<\/li>\n<li>Payments by lessees of Pennsylvania real estate to a nonresident lessor, but only for lease payments in the course of a trade or business.\u00a0 (See new Code \u00a7 324.4, added by Act \u00a7 25.)\u00a0 According to the Department of Revenue, this does not apply to residential leases.<\/li>\n<\/ul>\n<p>So these new provisions might apply to an estate or trust, but only if the estate or trust were conducting a trade or business and were making the kinds of payments described above.\u00a0 Even then, other exceptions might apply.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Act of October 30, 2017, No. 43, P.L. 672, amended the Tax Reform Code of 1971 by adding new requirements for the withholding of Pennsylvania income tax from payments of Pennsylvania source income to nonresidents, and the Department of &hellip; <a class=\"more-link\" href=\"https:\/\/resources.evans-legal.com\/?p=6117\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[29],"tags":[615],"class_list":["post-6117","post","type-post","status-publish","format-standard","hentry","category-news-items","tag-pennsylvania-personal-income-tax","pmpro-has-access"],"_links":{"self":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/6117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6117"}],"version-history":[{"count":2,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/6117\/revisions"}],"predecessor-version":[{"id":6119,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=\/wp\/v2\/posts\/6117\/revisions\/6119"}],"wp:attachment":[{"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/resources.evans-legal.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}