Philadelphia taxpayers may be eligible for an additional tax refund.
The Philadelphia Department of Revenue is alerting residents that they may qualify for an Income-Based Wage Tax Refund if they meet certain eligibility requirements. Those who are eligible can benefit from a reduced Wage Tax rate and request a refund for any overpaid taxes. Refund applications are being accepted for tax years 2022, 2023, and 2024.
This program is meant to offer financial support for low-income individuals and families. To qualify, applicants must be approved for Pennsylvania Tax Forgiveness by filing a PA Schedule SP, have an income below the limit set by Pennsylvania for the relevant tax year (visit the Pennsylvania Department of Revenue’s website at revenue.pa.gov for the income guidelines), and not owe any taxes or fees to the City of Philadelphia.
Taxpayers can submit refund petitions online through the Philadelphia Tax Center at tax-services.phila.gov. Applicants will need a copy of the completed PA-40 form and PA Schedule SP (tax forgiveness) for each tax year for which a refund is being requested, as well as W-2 forms, showing Federal, State, Medicare, and Local wages and withholdings. (Taxpayers who receive a Form 1099-DIV are not eligible.)
“Although Revenue has made progress encouraging more people to request a refund, doubling the number of requests processed from 2023 to 2024, we know far more Philadelphians are eligible and leaving money on the table,” said Revenue Commissioner Kathleen McColgan.
More information and instructions are available online at phila.gov/revenue/income-
