What are the qualifications for this credit?
The qualifications for the Tax Forgiveness Credit are as follows:
- You are subject to Pennsylvania personal income tax. You and/or your spouse are liable for Pennsylvania tax on your income (or would be liable if you earned, received, or realized taxable income)
- You are not a dependent on another person's federal tax return; and
- You meet the eligibility requirements*
Can I qualify if I am a full-time student?
Individuals who are considered full-time students, and are listed as dependents on his/her parents' federal return cannot claim the Tax Forgiveness Credit, regardless of income, unless the parents are also eligible for the Tax Forgiveness Credit.
If the parents are eligible, then the student must file his/her own tax return, along with PA Schedule SP.
Can I claim my dependent for this credit?
A dependent child may be eligible if he or she is a dependent on the Pennsylvania Schedule SP of his or her parents, grandparents, or foster parents and they also qualify for tax forgiveness.
You may NOT claim a dependent child on PA Schedule SP if:
- The dependent is not your child
- You cannot claim the child on your federal return
- You are unmarried and your former spouse can claim your child as a dependent for federal or PA purposes
For more information, see Pennsylvania Schedule SP - Tax Forgiveness Credit in our Knowledgebase.
For complete instructions for PA Schedule SP, visit the PA website.
For additional information about tax forgiveness, see the brochure on the PA website.