2018 Pennsylvania Tax Refunds

In July Pennsylvania begins issuing refunds for PA 40 individual tax filings with refunds requested that include an EITC tax credit.  The state delays the refunds until the start of their fiscal year to do the first compliance check which is to make sure the refund is authorized and included properly on your tax return and a properly filed 1123 form was submitted which is done by our charity in April.  If your refund has not cleared this compliance check you will have received a notice by now.  If the notice mentions form 1123 send the notice to us and we will help you get this compliance form answered quickly.  

In order to get to the top of the list for refund processing in July you can make one request of the state using this method. 

SUBMIT A QUESTION website.  Here are the steps:
1.  Click submit a question tab.
2.  Log in using user name and password or set one up.
3.  Select a catagory "individual taxpayers"
4.  Subject 2018 PA 40 tax refund with a PA EITC tax credit on a K-1
5.  Question - my refund is listed as delayed.  My name is XXXX and the last 4 digits of my social security number are XXXX.
Can you please submit my refund for final review?

PA Department of Revenue takes 60 days to issue the refund after this inital contact and they will respond in 48 hours to your question by email telling you they are working on your refund.  After 45 days you can verify that the refund is coming by entering information in the PA where is my refund? website or you will receive a letter letting you know a refund is coming.  If you do nothing your refund will still arrive in September typically but if you contact the state multiple times it will continue to reset your 60 day wait.  

If there are other issues with your PA 40 filing your accountant can help or your state representative can get involved.  This delay in refunds related to Pennsylvania EITC tax credits is frustrating but the delay is justified so the state makes sure they send the correct refund to the correct person.  

​Each SPE member is strongly advised to consult their tax advisor for the advice applicable to their specific circumstances.  This article does not constitute tax advice.

We did two blog posts in July so if you want the new law post the link is here. Alternatively you can hit the previous button below.