Pennsylvania HB1514 amends the Tax Reform Code of 1971 to allow a tax credit for taxes paid on tipped wages.

Pennsylvania HB1514 amends the Tax Reform Code of 1971 to introduce a tax credit for taxes paid on tipped wages. This credit is equal to the amount of income in the form of tipped wages multiplied by the tax rate. Tipped wages are defined as voluntary payments made by customers to employees, not set by employers. The credit is calculated using information provided by the employer and is incorporated into the standard PA 40 form. The tax credit is fully refundable and cannot exceed the proportion of the tax otherwise due. The Department of Revenue is responsible for administering this credit.

Pennsylvania HB1514 amends the Tax Reform Code of 1971 to allow a tax credit for taxes paid on tipped wages.

Pennsylvania HB1514 amends the Tax Reform Code of 1971 to introduce a tax credit for taxes paid on tipped wages. This credit is equal to the amount of income in the form of tipped wages multiplied by the tax rate. Tipped wages are defined as voluntary payments made by customers to employees, not set by employers. The credit is calculated using information provided by the employer and is incorporated into the standard PA 40 form. The tax credit is fully refundable and cannot exceed the proportion of the tax otherwise due. The Department of Revenue is responsible for administering this credit.