What is the Working Pennsylvanians Tax Credit?
The Working Pennsylvanians Tax Credit is a new refundable credit for Pennsylvania based on the federal Earned Income Tax Credit. The credit is available to individuals who have earned income in Pennsylvania AND who are claiming the Earned Income Tax Credit on their federal return. It will be calculated as 10 percent of your federal EITC.
Due to the timing of the legislation enacting the new credit, the Working Pennsylvanians Tax Credit will not be included on the PA-40 forms or instructions for tax year 2025. Instead, the PA Department of Revenue will be automatically calculating the credit when your tax return is processed and issuing the credit to you by adjusting your refund or tax due amount. There should be no delay with the processing of your refund.
If you mail in your Pennsylvania tax return, you will need to attach a copy of your federal tax return so that the Pennsylvania DOR can determine that you qualify for the Working Pennsylvanians Tax Credit and calculate the correct credit amount based on your federal EITC.
If you are already receiving a refund, you will receive a larger refund with the new credit amount included. If you owe a balance of tax due on your Pennsylvania tax return, Pennsylvania asks that you pay the full amount of tax due owed with your filed return and if you qualify for the credit, the PA DOR will issue you a refund of the credit amount.
If you have any questions or concerns about your Working Pennsylvanians Tax Credit, you can call the Pennsylvania Department of Revenue at 717-787-8201.
Due to the timing of the legislation enacting the new credit, the Working Pennsylvanians Tax Credit will not be included on the PA-40 forms or instructions for tax year 2025. Instead, the PA Department of Revenue will be automatically calculating the credit when your tax return is processed and issuing the credit to you by adjusting your refund or tax due amount. There should be no delay with the processing of your refund.
If you mail in your Pennsylvania tax return, you will need to attach a copy of your federal tax return so that the Pennsylvania DOR can determine that you qualify for the Working Pennsylvanians Tax Credit and calculate the correct credit amount based on your federal EITC.
If you are already receiving a refund, you will receive a larger refund with the new credit amount included. If you owe a balance of tax due on your Pennsylvania tax return, Pennsylvania asks that you pay the full amount of tax due owed with your filed return and if you qualify for the credit, the PA DOR will issue you a refund of the credit amount.
If you have any questions or concerns about your Working Pennsylvanians Tax Credit, you can call the Pennsylvania Department of Revenue at 717-787-8201.
