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Tax Forgiveness

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Many Pennsylvanians who may be eligible for a refund or reduction of their Pennsylvania personal income taxes will be receiving letters in the mail encouraging them to take action to claim their refunds.

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.

Visit 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.

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 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’s wage tax refunds website for more information and a refund form.