Personal Income Tax

Tax Forgiveness

Depending on your income and family size, you may qualify for a refund or reduction of your Pennsylvania income tax liability with the state’s Tax Forgiveness program.

Retired persons and individuals that have low income and did not have PA tax withheld may have their PA tax liabilities forgiven.

For example, a family of four (couple with two dependent children) can earn up to $34,250 and qualify for Tax Forgiveness. And a single-parent, two-child family with income of up to $27,750 can also qualify for Tax Forgiveness.

Nearly one in five households qualify for Tax Forgiveness. See if you qualify for all or part of Tax Forgiveness when you file your state income tax return. Simply file your state income tax return and include PA Schedule SP.

For more information, see the department’s brochure on the Tax Forgiveness program.

Taxpayers who qualify for PA’s Tax Forgiveness program may also qualify for the federal Earned Income Tax Credit program. For more information, visit the Internal Revenue Service’s Web site at www.irs.gov or call the IRS toll-free, 1-800-829-1040.

Philadelphia residents who qualify for PA’s Tax Forgiveness program can get a partial refund of city wage tax withheld by their employer. Visit the City of Philadelphia Department of Revenue website for more information.

PA Schedule SP Eligibility Income Tables

If you are filing as Unmarried, use Table 1. If you are filing as Married, use Table 2.

Move down the left-hand side of the table until you come to the number of dependent children you may claim. Then move across the row to find your eligibility income. At the bottom of that column is the percentage of Tax Forgiveness for which you qualify.

ELIGIBILITY INCOME TABLE 1. Unmarried and Deceased Taxpayers
If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

YOU

 

 
$6,500$6,750$7,000$7,250$7,500$7,750$8,000$8,250$8,500$8,750
DEPENDENT CHILDREN
1$16,000$16,250$16,500$16,750$17,000$17,250$17,500$17,750$18,000$18,250
2$25,500$25,750$26,000$26,250$26,500$26,750$27,000$27,250$27,500$27,750
3$35,000$35,250$35,500$35,750$36,000$36,250$36,500$36,750$37,000$37,250
4$44,500$44,750$45,000$45,250$45,500$45,750$46,000$46,250$46,500$46,750
5$54,000$54,250$54,500$54,750$55,000$55,250$55,500$55,750$56,000$56,250
6$63,500$63,750$64,000$64,250$64,500$64,750$65,000$65,250$65,500$65,750
7$73,000$73,250$73,500$73,750$74,000$74,250$74,500$74,750$75,000$75,250
8$82,500$82,750$83,000$83,250$83,500$83,750$84,000$84,250$84,500$84,750
9$92,000$92,250$92,500$92,750$93,000$93,250$93,500$93,750$94,000$94,250

Your percentage of Tax Forgiveness and the Decimal Equivalent is:

 100%90%80%70%60%50%40%30%20%10%
 1.0.90.80.70.60.50.40.30.20.10

 

ELIGIBILITY INCOME TABLE 2.  Married Taxpayers
If your Eligibility Income from PA Schedule SP, Line 11, does not exceed:

YOU & SPOUSE

$13,000$13,250$13,500$13,750$14,000$14,250$14,500$14,750$15,000$15,250
DEPENDENT CHILDREN
1$22,500$22,750$23,000$23,250$23,500$23,750$24,000$24,250$24,500$24,750
2$32,000$32,250$32,500$32,750$33,000$33,250$33,500$33,750$34,000$34,250
3$41,500$41,750$42,000$42,250$42,500$42,750$43,000$43,250$43,500$43,750
4$51,000$51,250$51,500$51,750$52,000$52,250$52,500$52,750$53,000$53,250
5$60,500$60,750$61,000$61,250$61,500$61,750$62,000$62,250$62,500$62,750
6$70,000$70,250$70,500$70,750$71,000$71,250$71,500$71,750$72,000$72,250
7$79,500$79,750$80,000$80,250$80,500$80,750$81,000$81,250$81,500$81,750
8$89,000$89,250$89,500$89,750$90,000$90,250$90,500$90,750$91,000$91,250
9$98,500$98,750$99,000$99,250$99,500$99,750$100,000$100,250$100,500$100,750

Your percentage of Tax Forgiveness and the Decimal Equivalent is:

 100%90%80%70%60%50%40%30%20%10%
 1.0.90.80.70.60.50.40.30.20.10