There are three different types of refunds for Wage Taxes:
- Wage Tax refund for employees who are salaried
- Wage Tax refund for employees who are commissioned
- Wage Tax refund for taxpayers who meet certain income requirements
Refunds for salaried or commissioned employees
Only non-resident employees are eligible for a Wage Tax refund based on work performed outside of Philadelphia. Resident employees are taxable whether working in or out of Philadelphia. However, resident employees may use these forms to apply for a refund based on deductible, non-reimbursed business expenses.
Effective January 1, 2014, all employee Wage Tax refund petitions require documentation to verify any time worked outside of Philadelphia. Telework employees must provide a copy of their Telework Agreement.
Use the forms linked on this page to apply for the Wage Tax for salaried or commissioned employees.
If you requested a refund on your return, you do not need to fill out these forms.
Income-based Wage Tax refunds
If you file for Pennsylvania tax forgiveness through PA Schedule SP and are approved, you may be entitled to receive a refund of 0.5% of employer-withheld City Wage Tax.
Eligible applicants receive a rate reduction, which is then applied to the calculation of their refund. Full instructions, along with a schedule of eligible income amounts and rate reductions, are included in the refund petition form.
Philadelphia employers are required to give an income-based Wage Tax refund petition form to employees by February 1. In most cases, employers provide the refund petition at the same time they provide employee W-2’s or comparable forms. You may also download a copy of the form online.
If you’re approved, you should receive your refund in July of the year in which you apply.