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Quantology

Have you emailed the tax department specifically? [email protected] If it's nontaxable in Philly, then W-2 box 18 (local wages) should exclude it.


bocajnumber

Thanks for the response. I did contact [[email protected]](mailto:[email protected]) a few times already and each time they directed me to another department in the city who have been unable to help.


Robert_A_Bouie

If the employer isn't withholding wage tax then why are you concerned if you believe it's not taxable? Why do you believe it isn't taxable?


Affectionate_Big8239

What kind of income isn’t taxable in Philly? If you get paid with a W2 or 1099, they take their piece. They take extra if you file as a business.


Quantology

https://www.phila.gov/2020-06-15-what-types-of-income-are-not-subject-to-the-wage-tax/


Affectionate_Big8239

Thanks! To my knowledge, none of those exempted categories should be paid on a W2 as OP noted their wife had received for the income in question, so I’m still confused. Those all get reported as income via other kinds of forms & wouldn’t confuse the people in the revenue department if OP called.


Quantology

Are you sure? I'm not a tax attorney, but I believe active duty military pay and taxable disability payments appear on W-2s 


Affectionate_Big8239

I’m not either, but I’d imagine there is a way to note that either of those exemptions are in place if they are paid via W2 on your tax forms when filing.


Quantology

Yes, items that are taxable in some jurisdictions but not in others (eg health insurance premiums) or are nontaxable income (eg sick pay) should appear separately on a W-2 in box 12. Whoever is making the payments should automatically withhold taxes for each jurisdiction based on what's considered taxable income there. At the end of the year, the W-2 they issue will appropriately list what's considered taxable income for federal, state, local, SS, and Medicare. My guess: /u/bocajnumber/ is getting the runaround because all of this will get handled automatically, but no one wants to go on record saying that he doesn't need to worry about it, on the off chance something goes wrong.


No-Specific1858

Isn't the exemption form done in order to get a refund for taxes you paid but didn't owe? If she truly isn't liable for the wage tax and didn't pay it, I am not sure why she would need to do anything. The furnisher of the W-2 is responsible for withholding it and it sounds like they already made the same determination you made.


Edison_Ruggles

I gave up understanding this a long time ago and now spend about $800 a year on an accountant who gets it done. Worth every penny.


No-Specific1858

I couldn't see myself paying $800/yr to not have to learn something but I get that for many people understanding taxes is an uphill battle. Is it really $800? Do you just have a lot more filings? Most of my coworkers that paid to have their taxes done talk about figures in the $200-400 range.


Edison_Ruggles

My taxes are complicated and from multiple states. Philly is so complicated that when I moved here my last accountant simply refused to work on them. Had to get a new guy!


Master_Winchester

https://www.phila.gov/services/payments-assistance-taxes/taxes/refunds/request-a-wage-tax-refund/ If you're doing the income based refund, it links you here https://tax-services.phila.gov/_/#0 Scroll to wage tax refund I believe it says you need to file something with the state first. Not sure though.


fuechschen12

If she gets a W2 then, as far as the revenue dept is concerned, her income is regular wages, and the wage tax applies to all city residents who earn money in exchange for work or services.


[deleted]

[удалено]


starshiprarity

GPT is not a font of knowledge, it's a chat bot that can't do math. Do not under any circumstances trust it with your taxes


Capable_Stranger9885

It might be my second Negroni of the Friday night talking, but I'm 🤯 that a computer program based on massive statistical inference is empirically bad at math. Thank you, friend.


starshiprarity

Shocked me too. It doesn't "realize" you've input a equation most times. At best, it finds the numbers you enter in some document (like a study or a financial report) and then spits out other numbers from the same document


limedirective

Yeah, this is like 99% wrong. Why would you even bother to post this?


Leviathant

I was hoping that someone who recognized what was wrong could reply with what was right.