What is Tax Forgiveness?
Tax Forgiveness is a credit that allows eligible taxpayers to reduce all or part of their PA tax liability.
• Gives a state tax refund to some taxpayers; and
• Forgives some taxpayers of their liabilities even if they have not paid their PA personal income tax. Who is Eligible for Tax Forgiveness?
You, and your spouse if applicable, are eligible if:
1. You are subject to PA personal income tax. You and/or your spouse are liable for PA tax on your income (or would be liable if you earned, received, or realized PA-taxable income);
2. You are not a dependent on another person's federal tax return; and
3. You meet the eligibility requirements.
For more information, see the department’s brochure on the Tax Forgiveness program.