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Level 1
March 29, 2020
Question

Philadelphia Local tax withheld

  • March 29, 2020
  • 3 replies
  • 23 views

A client's son attending U of Penn had $ 24 withheld from a work study job for Philadelphia local tax. How do I file a return to get him a refund?

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3 replies

sjrcpa
Level 15
March 29, 2020

You don't. It won't be refunded. The withholding = the amount of tax due. 

The more I know the more I don’t know.
Level 2
March 29, 2020

Philly employers are required to withhold taxes from anyone who works in Philly  - a non-resident earned income tax.  The only reason to file is if the employer withheld at the wrong rate.

NJ residents, however, can take a credit against NJ taxes for taxes paid to Philly, just like they would with taxes paid to a non-resident state.

Accountant-Man
Level 13
March 29, 2020

Nothing to do.

BTW, many PA localities also withhold a local earned income tax, from 0.5% up to 2%. Philadelphia's is the highest.

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