Thousands of Wage Taxpayers may qualify for refunds

Did you have a job in the last few years and pay Philadelphia's Wage Tax? You may get back some of your 2021, 2022, and 2023 payments if you qualify! The Department of Revenue recently sent letters to more than 113,000 taxpayers. We're notifying them that they may be eligible for income-based refunds. Data-sharing agreements helped us match taxpayers' information with eligibility requirements. If you received one of our letters, here's what you need to know:

Get your money back

The amount of this refund depends on your income and family size. For example, you can get up to $770 back if you're married with two dependents. You may even get bigger refunds if you qualify for unclaimed money for all three years. But you've got to act fast because deadlines are approaching. February 28, 2025, is the last day to claim 2021 Wage Tax refunds. By law, taxpayers have up to three years to claim tax credits or refunds.

These are the requirements

You won't get a refund check automatically. Eligible taxpayers must file a petition to get their money back. Be sure you meet these requirements before you apply:

• You must be approved for tax forgiveness by Pennsylvania's Department of Revenue.
• You don't owe anything to Philadelphia (taxes, fees).
• You don't make more than the State's income limit for the tax year you're claiming a refund.
• Also, your family size is within the State's limits.

Here's what you'll need

If you meet the requirements, you should fill out a refund form for the applicable tax year and submit it. You'll need copies of your PA-40 Personal Income Tax Return and PA Schedule SP for each tax year you're claiming a refund. You must file these forms with the Commonwealth and then upload copies to your Philly refund petition. We can't process your petition without these Commonwealth of Pennsylvania forms.

You'll also need your W2. The W2 must show taxes, wages, and withholdings from the federal, state, and local governments. It must also show Medicare withholdings.

If you are a non-resident petitioner, we encourage you to review our recent guidelines carefully before starting your request.

If you've got everything you need, here's the next step

Visit tax-services.phila.gov, scroll to the "Refunds" panel, and select "Request Employee Wage Tax Refund." Read the instructions carefully and enter your information, including your mailing address.

Choose "I qualify for the income-based PA tax forgiveness rate" on the "Tax filing information" screen. Pick the correct year for the refund you're requesting.

If you prefer, you can submit a paper petition, but online is faster, safer, and more secure. Online submission speeds up processing and reduces errors. You don't even have to worry about postage. Best of all, you can track your refund using the Philadelphia Tax Center's "Where's My Refund?" tool. You don't need a username and password to submit or track refunds online.

Did you get this letter in error?

There's a chance you won't be eligible for an income-based Wage Tax refund because of your work situation or earnings. Talk to a tax professional to see if you qualify for this credit in 2021, 2022, or 2023. Our network partners can help you for FREE.

A quick look at Philly's Wage Tax

Salaries, wages, commissions, and other compensation earned in Philadelphia are subject to the City's Wage Tax. Employers withhold and remit this tax to the city on behalf of employees. You're eligible for a refund if:

• You're a nonresident salaried or hourly employee required to work remotely or outside the City.
• You're a commissioned or salaried employee with stock options and/or business expenses.
• You're a low-income taxpayer who qualifies for Pennsylvania tax forgiveness. OR,
• You're a Philly resident who paid taxes in another jurisdiction.

Visit our website to learn more about this and other City taxes.

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