New Guidelines for Philadelphia Non-Resident Wage Refunds

Philadelphia has updated its guidelines for non-resident Wage Tax refunds which apply to tax years 2023 and beyond. The Wage Tax applies to all earnings made in Philadelphia, including salaries, wages, and commissions. Both residents and non-residents working in the city are subject to this tax, which should be collected and remitted by their employers.

Individuals who are not residents of Philadelphia but had Wage Tax deducted from their paychecks for days they were required to work remotely by their employer can claim a refund for those days. To request a refund for tax year 2023, follow these guidelines:

1. Employer Certification Letter: Use the provided template for an employer certification, transfer it to your employer’s letterhead, and have it signed by your employer. Submit this along with your refund petition. Any alterations to the template will result in rejection of your request.
2. Dates and Locations Worksheet: If your employer required you to work remotely or travel, provide a list of dates and places where work was performed outside of Philadelphia. Use the Dates and Locations worksheet included in the guidelines to capture these details.
3. W-2 Form: Submit your W-2 form showing local wages paid. This document is essential for verifying your Social Security Number, employer’s Federal Identification Number, compensation, and tax paid to Philadelphia.

For more details about the revised guidelines with complete instructions, visit the Philadelphia Department of Revenue website.

Source: www.phila.gov