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if you are filing a paper return, make sure that you have completed lines 1 through 18 of your pa-40, pa personal income tax return, before completing pa schedule sp. ask the person who may claim you if he/she is eligible for pa tax forgiveness. eligibility income is the total amount of pennsylvania-taxable and nontaxable income that is used to determine the percentage of tax forgiveness. enter the amount of the pa tax liability from line 12 of the pa-40, personal income tax return. at the bottom of that column is the percentage of tax forgiveness for which you if your eligibility income from pa schedule sp, line 11, does not exceed: you. a pa personal income tax return (pa-40) and complete schedule sp.
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