Dear Employer,

The City of Philadelphia requires employers to notify their employees about the programs and tax credits listed below. This notification can be an electronic or printed copy but must be distributed to employees no later than February 1, 2024.

The Federal Earned Income Tax Credit (EITC)

The City of Philadelphia wants every qualifying Philadelphian to receive the federal Earned Income Tax Credit (EITC). This federal credit is for low-to-moderate-income individuals and families. They can claim the credit when filing a federal tax return and receive a credit of up to $7,430. Despite its availability, thousands of hard-working eligible Philadelphians are not claiming the EITC credit, which can provide a needed financial boost to individuals, families, and the local economy. As we enter the 2024 tax season, we again count on your cooperation in raising awareness about EITC among your employees.

The Federal Child Tax Credit (CTC)

In addition, the federal Child Tax Credit gives parents and guardians up to $2,000 per qualifying dependent, regardless of their working status. Both federal programs represent millions of dollars in the pockets of Philadelphians. Since this incentive doesn’t count as an income, receiving the Child Tax Credit (CTC) won’t affect their eligibility or participation in programs like SNAP, Medicaid, or most other benefits.

How should your business promote EITC?

The City provides a notice that explains how employees can claim EITC and requires you to give workers this notice while providing them with W-2s, 1099s, or comparable forms. You can do this electronically or give them a printed copy. The notice is available for download at phila.gov/revenue/eitc.

The City of Philadelphia Income-based Wage Tax Refund Program

The City also reduces the Wage Tax and Net Profit Tax rate to 1.5% for taxpayers eligible for Pennsylvania Special Tax Forgiveness. Eligible employees must complete the Pennsylvania Special Tax Forgiveness schedule ("Schedule SP") when submitting their Pennsylvania Personal Income Tax return. After filing the PA Income Tax return, eligible Philadelphia taxpayers may request a refund from the Philadelphia Department of Revenue by submitting an Income-based Wage Tax Refund Petition.

Employers may not reduce their employees' Wage Tax withholding. Eligible employees who file a petition can receive a refund of Wage Tax paid in excess of 1.5% for the 2023 tax year.

Paper versions of the 2023 Income-based Wage Tax petitions are now available for download on our website at phila.gov/revenue/wage-tax-petition.

Employees can now apply online for an Income-based Wage Tax Refund



Eligible employees can complete a 2023 Income-based Wage Tax petition electronically. They can access the forms directly from the Philadelphia Tax Center's homepage. A username and password are not required, and the process is fast and secure. Income-based petitioners will need their W-2s and copies of their A-40 Personal Income Tax Return and PA Schedule SP. They must first file these with the Commonwealth and upload copies along with their refund requests. Income-based refunds submitted without the required PA forms will be denied.

For questions, please email revenue@phila.gov or call us at (215) 686-6600. Please do not respond to this email, as this email box is not monitored.