The Working Pennsylvanians Tax Credit (WPTC) is a refundable Pennsylvania tax credit for taxpayers who qualify for the federal Earned Income Credit (EIC). Eligible taxpayers may receive a credit based on their federal EIC, even if they do not owe Pennsylvania income tax.
Pennsylvania Return > Credits > Working Pennsylvanians Tax Credit
Who Qualifies for the Working Pennsylvanians Tax Credit?
To qualify for the WPTC, the taxpayer must:
- Have earned income.
- File both a federal income tax return and a Pennsylvania tax return.
- Qualify for the federal Earned Income Credit (EIC).
If all eligibility requirements are met, Pennsylvania may calculate and issue the credit.
How Is the Credit Calculated?
The Working Pennsylvanians Tax Credit is based on the federal Earned Income Credit claimed on the taxpayer's federal return.
Because the credit is refundable, eligible taxpayers may receive the credit even if they do not owe Pennsylvania income tax.
What Information Is Needed to Claim the Credit?
The information used to determine eligibility for the Working Pennsylvanians Tax Credit is generally obtained from the taxpayer's federal and Pennsylvania returns.
Taxpayers should ensure that:
- Earned income is entered correctly.
- The federal Earned Income Credit has been calculated accurately.
- All qualifying dependent information has been entered, if applicable.
Special Processing Information
For tax years in which Pennsylvania processes the credit separately from the Pennsylvania return, eligible taxpayers should file their return as usual.
Depending on the taxpayer's situation:
- Taxpayers expecting a refund should file their return normally.
- Taxpayers with a balance due should pay the amount owed shown on the return.
- Taxpayers with no refund or balance due may still qualify for the credit.
Pennsylvania will determine eligibility, calculate the credit, and issue any applicable payment.
How Does This Affect My Return?
The Working Pennsylvanians Tax Credit may:
- Increase a Pennsylvania refund.
- Provide a refundable credit to eligible taxpayers.
- Reduce or eliminate Pennsylvania tax liability when applicable.
Important Information
- Taxpayers must qualify for the federal Earned Income Credit to be eligible for the Working Pennsylvanians Tax Credit.
- The credit is based on information reported on both the federal and Pennsylvania returns.
- Eligibility is determined by Pennsylvania based on applicable requirements.
- The credit is refundable, which means eligible taxpayers may receive the credit even if they do not owe Pennsylvania income tax.
Additional Information
For more information about the Working Pennsylvanians Tax Credit, visit the Pennsylvania DOR: Working Pennsylvanians Tax Credit