HARRISBURG — Many Pennsylvanians who may be eligible for a refund or reduction of their Pennsylvania personal income taxes will receive letters in the mail in the coming weeks.
The Department of Revenue announced on Monday if you receive this letter, you must take action to claim your refunds.
The letters (see attached example) are being sent to Pennsylvanians who the department believes may be eligible for refunds through the commonwealth’s Tax Forgiveness program. The recipients of the letter will be encouraged to file a Pennsylvania Personal Income Tax Return (PA-40) to claim their refunds.
Refunds available through the Tax Forgiveness program can be up to $1000, depending on a resident’s income and the number of dependent children.
“We want to reach as many Pennsylvanians as possible who are eligible for this program to let them know that their refunds are waiting for them,” Revenue Secretary Dan Hassell said. “If you have a neighbor, friend or family member whom you think may be eligible for this program, please encourage them to check their eligibility and file a tax return with our department.”
According to the most recent data, the Department of Revenue estimates there are tens of thousands of Pennsylvania taxpayers who would qualify for Tax Forgiveness but do not file an income tax return with the commonwealth to claim the benefit.
How to File a PA-40 and Claim Tax Forgiveness
One easy way to file your Pennsylvania Personal Income Tax Return (PA-40) and the required additional form, Schedule SP, is by using myPATH, the Department of Revenue’s free, online tax filing system.
Click HERE and look at the links under the “Individuals” section on the homepage. You can click on either “File a PA Personal Income Tax Return for 2020” or “File a PA Personal Income Tax Return for 2019” to file a return for the appropriate year and claim a refund through Tax Forgiveness.
Taxpayers do not need to create a username or password to file the PA-40 and Schedule SP. Prior to filing your return, you will need your wage and tax information. The system will walk you through a series of steps to file your return and determine your eligibility for Tax Forgiveness.
Other free electronic filing options are available to file state and federal returns using software from a reputable vendor. Click HERE for more vendor information.
Background on Tax Forgiveness
Through Tax Forgiveness, eligible working families who paid income tax throughout the year may be refunded some or all of that tax paid. Retired persons and low-income individuals who did not have PA income tax withheld from earnings may have PA income tax liabilities forgiven.
About one in five households qualify for Tax Forgiveness, and it is a benefit commonly received by retirees and low-income workers. A family of four (couple with two children) can earn up to $34,250 and qualify for Tax Forgiveness. Meanwhile, a single-parent, two-child family with income of up to $27,750 can also qualify for Tax Forgiveness. Click HERE for further eligibility information, including eligibility income tables.
People who are claimed as a dependent of another taxpayer are not eligible to receive Tax Forgiveness. There are additional instructions available in the Tax Forgiveness section of the Department of Revenue’s PA Personal Income Tax Guide.
Taxpayer Service and Assistance
Those with questions on Tax Forgiveness can finds answers through the department’s Online Customer Service Center. The Online Customer Service Center allows taxpayers to securely submit a question to the department through a process that is similar to sending an email.