18490: PA - Philadelphia PHL 40 and PA PH RPSE

If Philadelphia Annual Reconciliation of Employee Earnings Tax ("PA PHL 40" in View/Print mode) or Philadelphia Wage Tax Refund Petition ("PA PH RPSE") is producing, check for the following entries:

• Federal screen 1 has either:
  • PL listed in the Resident city drop list
  • Philadelphia as the City in the mailing address is
    
•  Federal screen W2 has:
  
  • PA in box 15
    
  • An amount in box 18
  • A blank box 20 or PL selected
• PA screen PH40 has either of the following marked:
  
  • Generate the Philadelphia Tax return
  • Force print Philadelphia employee earnings tax page 1 even if not required
    

PA PH RPSE is only produced when a refund is calculated based on the withholding and calculated tax liability.

If the Philadelphia return is not needed, you can remove it by selecting the appropriate Resident city on federal screen 1 and taxing Locality on screen W2. You can also use PA screen PH40 to Suppress the Philadelphia return. The Philadelphia Tax ID is a required entry on the PH40 screen; if unknown, enter ten zeros (0000000000). Be sure to recalculate the return after making these entries. In some cases, you may also need to repair the file (CTRL + Shift + R).

Neither form can be e-filed in Drake Tax. If filing PA PHL 40 with an amount due, a voucher is produced along with mailing instructions. If filing PA PH RPSE, the form must be paper filed, and the refund will be issued via check.