Reasons Your Refund May Be Denied

  • The Local Services Tax cannot be used as credit against your Earned Income Tax liability.
  • Federal Income Tax cannot be used as a credit towards Local Earned Income Tax liability.
  • PA State Tax cannot be used as credit towards Local Earned Income Tax liability.
  • Social Security/Medicare Tax cannot be used as credit towards Local Earned Income Tax liability.
  • PA Unemployment Compensation cannot be used as credit towards Local Earned Income Tax liability.
  • Employee-directed contributions to retirement plans are taxable.
  • Stock Options are taxable.
  • The non-resident rate of the municipality in which you work is higher than your resident tax rate, therefore the additional tax withheld remains in the jurisdiction you work.
  • Losses from a business cannot be used to offset wages – for 2009 and forward.
  • Earnings reported on Schedule K-1 Sub-Chapter S (Form 1120-S) are not taxable on the local level and therefore should not be used in the calculation of your Final Earned Income Tax liability.
  • The taxing jurisdiction in which you work taxes residents and non-residents; therefore the additional tax withheld remains in the jurisdiction you work.
  • Incorrect tax rate used on your final return.
  • Incorrect figure from W-2 used
  • Rounding of figures were incorrect.
  • Difference in payments from what is indicated on your return and what was received.
  • Cost and/or Penalty & Interest previously paid cannot be used as credit towards tax liability.
  • Your Out of State credit cannot exceed your total liability.
  • Your Philadelphia credit cannot exceed your total liability.
  • State Taxes withheld in OH, NJ, VA, WV, MD, cannot be credited towards a refund of your local tax.
  • Local Earned Income Tax withheld on your return differs from the tax withheld on your W-2.

Reasons Your ACH Refund May Be Delayed

  • An incorrect account and / or routing number was entered.
  • The account and routing numbers are for a closed or inactive account.

If we are unable to verify the account, an email will be sent to the email address used to sign into your e-File account.

If the banking information is not corrected, a paper check will be mailed.

 

If you have additional/specific questions that are not addressed above, please click on the link to send an inquiry to our customer care department.

 

Please note that these are general frequently asked questions. If you have a specific questions, please use the Customer Care Department link above to contact us with your specific question(s).

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