I received a letter from Keystone Collections and it's confusing.

Submitted by pardman88 t3_10aa57p in Pennsylvania

Right now I'm living out of a motel place and I got a letter from Keystone Collections with no discernible information other than they want me to calculate and report tax information, but I have no idea what it is. Originally I was living in Lancaster up until April where I left to live with a friend for a while in Perkasie, then I moved back to Lancaster for a bit then moved to Harrisburg. I assume it's because of all of that, maybe my Perkasie location, that they're doing this but I was unemployed at that time and made no money at all. Anyone know what I can do about it?

I looked up other posts regarding Keystone, but I didn't find any information I found useful to my situation.

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BonusUpbeat t1_j43v9p7 wrote

It is most likely your local taxes. PA collects both an earned income tax (the rate is based on home and work locations) and LST (flat rate). Keystone collects these taxes for local municipalities. Usually, your employer withholds these taxes, and you just have to fill out the form stating you are not entitled to a refund, nor owe any taxes.

https://dced.pa.gov/local-government/local-income-tax-information/

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IamSauerKraut t1_j43yu6v wrote

Keystone letters contain contact info for Keystone. Call them. They will tell you exactly what you need to do.

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PsychoCelloChica t1_j444gfr wrote

Second this. Keystone had me listed as working in a different township than I actually work in and so they sent me a delinquent notice when I had already paid. I gave them a call and they reviewed my residency and job history and adjusted their records.

Yours might not be as quick and easy a resolution as mine was (you may need to pay separate taxes/ file separate returns in multiple jurisdictions), but they will help you figure it all out.

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xRarex0nex t1_j43v47u wrote

Welcome to the nightmare bruh

I don't even remember wtf happened with that but you just brought back a bad memory, iirc it wasn't a complete scam as in it was a (pretty small) bill I knew I didn't pay (while going thru a divorce, at the time)

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rogimonster t1_j44vqag wrote

In my experience keystone is wrong 100% of the time. Also 3rd party tax collection agencies are complete garbage and should be outlawed.

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Vast-Support-1466 t1_j45ohvi wrote

No income, no unemployment collection? Call them and tell them that - or just log on to their website and file the forms.

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cutiecat565 t1_j43y7xn wrote

Probably the local tax that is like $10

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photo_photographer t1_j476j0m wrote

Person who does payroll here!

When you file your yearly taxes, you should file a federal, state, AND local return. If you didn't file a local return with Keystone collects it could be why they're sending you a letter. Use this website to figure out your local tax district and rate based on where you lived https://munstats.pa.gov/public/findmunicipality.aspx

Then take a look at your W2 and see if your employer with held enough money. Most localities are 1% with bigger cities being higher.

If you don't respond to the letter and clear things up and they determine you owe money, they'll send a wage attachment to your current employer for them to with hold and remit the money for you, which they'll tack on any penalties and interest.

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