Philadelphia Introduces Simplified Refund Process for Non-Resident Workers’ Wage Tax

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The City of Philadelphia has unveiled updated guidelines impacting non-resident workers seeking refunds for the Wage Tax, applicable from tax years 2023 onward. This move aims to streamline the refund process for those who worked remotely due to employer requirements. The revisions underscore the city’s commitment to fair and transparent tax policies.

Photo from: Phila.gov

Wage Tax Overview

Philadelphia’s Wage Tax applies to income earned within the city limits, affecting both residents and non-residents working in Philadelphia. Typically withheld by employers, it becomes the responsibility of the employee to file and pay the Earnings Tax if not remitted by the employer.

The new instructions mandate an Employer Certification Letter on the employer’s letterhead, signed without alterations. Both employer and employee signatures are required on refund petitions, considered legal documents.

Petitioners must submit a detailed record of remote work or travel through a Dates and Locations worksheet. The provided worksheet in the guidelines ensures accurate capture of essential details, aiding the city in verifying workdays outside Philadelphia.

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Online Submission Encouraged

Including the W-2 form with the refund request is crucial for verifying Social Security Number, employer’s Federal Identification Number, compensation, and tax paid to Philadelphia.

Philadelphia encourages taxpayers to submit refund requests online via tax-services.phila.gov, offering a mobile-friendly platform with a “Where’s my refund” tracking service. Paper filers should allow 30 days before checking their refund status.

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