Thousands of Pennsylvanians could be in for a nice surprise before the holidays as the state Department of Revenue has started to notify residents they may be entitled to refunds or state income tax reductions.
On Monday, the department announced that letters are going out to “tens of thousands” of low-income residents it considers eligible for refunds through the tax forgiveness program.
Those receiving letters should file a Pennsylvania personal income tax return (Form PA-40) to claim a refund.
Refunds can reach $1,000, but that depends on a filer’s income and number of dependent children.
“We want to reach as many Pennsylvanians as possible who are eligible for this program to let them know that their refunds are waiting for them,” said Pennsylvania Secretary of Revenue Dan Hassell in a statement.
The department said that the tax forgiveness program refunds about $240 million annually to more than 1 million Pennsylvanians, but that many more residents are eligible and do not file.
The letters bear the “R” and keystone logo of the department and provide a phone number to call for assistance. Form-40s can be filed at mypath.pa.gov.
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Who’s eligible?
Eligible filers who paid state income tax can be refunded all or a portion of the amount paid through the tax forgiveness program.
Low-income workers and retirees who did not have state income taxes withheld from any earnings can also receive tax forgiveness.
The department said about one in five households, mainly low-income workers and retirees, qualify for tax forgiveness. A family of four (two adults and two children) can earn up to $34,50 and still qualify for forgiveness.
A single parent with two children with an income up to $27,750 can also qualify for forgiveness.
More information on eligibility is available under the tax forgiveness page at revenue.pa.gov.
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Filing for a refund
Besides filing a Form PA-40, a Schedule SP is also required when seeking a refund.
Filers going to mypath.pa.gov should click the link for “Individuals” and then links to “File a PA Personal Income Tax Return for 2020” or “File a PA Personal Income Tax Return for 2019.”
Usernames and passwords are not required to file the forms, but filers will need their wage and tax information.
Additional help is available through the Revenue Department’s online customer support at revenue-pa.custhelp.com/.
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J.D. Prose is a reporter for the USA TODAY Network’s Pennsylvania State Capital Bureau. He can be reached at [email protected].
Read More: Pa. income tax refunds are available. Find out if you’re eligible