What is Tax Forgiveness?
Tax Forgiveness is a credit that allows eligible taxpayers to reduce all or part of their Pennsylvania tax liability. Tax Forgiveness:
Who is Eligible for Tax Forgiveness?
- Gives a state tax refund to some taxpayers; and
- Forgives some taxpayers of their liabilities even if they
have not paid their Pennsylvania Personal Income Tax.
You, and your spouse if applicable, are eligible if:
How Do I Claim Tax Forgiveness?
- You are subject to Pennsylvania Personal Income Tax. You and/or your spouse are liable for Pennsylvania tax on your income (or would be liable if you earned, received, or realized Pennsylvania taxable income); and
You are not a dependent on another person's federal tax return, and
You meet the eligibility requirements.
A dependent child may be eligible if he or she is a dependent on the PA Schedule SP of his or her parents, grandparents, or foster parents.
To claim Tax Forgiveness, complete and submit a PA Schedule SP, and:
IMPORTANT: There is no advantage to filing separately because married claimants must report their Joint Eligibility Income on PA Schedule SP.
Determine your Eligibility Income. If married, whether filing jointly or separately, you must determine your total (your Eligibility Income plus your spouse's Eligibility Income) joint Eligibility Income in Part C.
Determine your Filing Status in Part A.
Calculate your Tax Forgiveness Credit, using the applicable Eligibility Income Table, in Part D.