COVID-19 and the Philadelphia wage tax: who can get a refund?

PHILADELPHIA (WPVI) – Many people are working from home during the pandemic and this can impact their taxes.

Normally, non-Philadelphia residents employed in the city can obtain an income tax refund for the days they worked outside of Philadelphia. So you might think that non-residents who worked from home during the pandemic would receive a big, fat check this tax season, but that is not necessarily the case for everyone.

Action News went straight to the Municipal Revenue Service for answers.

“If you were forced to work from home outside of Philadelphia, because of the pandemic or just because your employer requires you to work from home, you do not pay wage tax for the time you worked outside the city,” explained Rebecca Lopez Kriss , Philadelphia’s deputy revenue commissioner.

RELATED: Questions and answers about the Philadelphia wage tax applicable to COVID policies19

The keyword here is “required”.

If you chose to work from home, even if it is because of a problem with your children or because you did not feel safe to return to work, the city says that you must pay the wage tax and are not entitled to a refund.

“Okay, it’s their convenience. So, if for whatever reason they stay home because of their convenience, or because their employer doesn’t require it, they still have to pay wage tax,” she said.

Now, if you are entitled to a refund, it is at least easier to submit a petition.

RELATED: How Working From Home Can Affect Your Tax Account

“Therefore, the city is, for the first time, allowing companies or employers to petition for reimbursements on behalf of their employees,” she said.

The city said all forms will be available on the IRS website next week. (The week of February 1). If your employer does not send you a refund claim, there is a new option online where you can do it yourself.

“We are calling it the easy COVID form for people who have been sent home,” she said.

Kriss is also begging people to be patient. She said it usually takes six to eight weeks to process refunds. She said that this year, despite efforts to simplify the system and increase staff, it may take longer.