Refund Process via PA Department of Revenue
The following is the typical timeframe for processing these specific refund requests due to the supporting documentation that the department needs to verify the credit amounts.
Even if the individual donor’s PA-40 is filed prior to the April filing deadline, the department cannot process the allocation of the tax credit to the individual taxpayer until it has received the following information related to the entity awarded the tax credits:
-EITC or OSTC award from the PA Department of Community & Economic Development
-REV-1123 allocating the entity credit to the individual taxpayers; and
-The tax return, filed by the awardee, electing to passthrough credit
Regarding the final point above, approximately 70% of Educational Tax Credit-related donations come through pass-through entities.
Often these entities do not file their tax returns until the fall, either on extension or after the department has reached out because of a compliance check.
Although there should be no expectation that the individual will receive their refund prior to the fall, the department will pay the applicable interest on the amount of the refund owed.
Even if the individual donor’s PA-40 is filed prior to the April filing deadline, the department cannot process the allocation of the tax credit to the individual taxpayer until it has received the following information related to the entity awarded the tax credits:
-EITC or OSTC award from the PA Department of Community & Economic Development
-REV-1123 allocating the entity credit to the individual taxpayers; and
-The tax return, filed by the awardee, electing to passthrough credit
Regarding the final point above, approximately 70% of Educational Tax Credit-related donations come through pass-through entities.
Often these entities do not file their tax returns until the fall, either on extension or after the department has reached out because of a compliance check.
Although there should be no expectation that the individual will receive their refund prior to the fall, the department will pay the applicable interest on the amount of the refund owed.