Review your PA return to see how this works. Visit the Internal Revenue Services web-site wwwirsgov for more information. Https Njcpa Org Docs Default Source Stay Informed Pa Nj Tax Reciprocity Q A Pdf Sfvrsn 0 Forgives some taxpayers of their liabilities even if they have not paid their Pennsylvania personal income tax. Pennsylvania special tax forgiveness credit . You can download or print current or past-year PDFs of Form PA-40 SP directly from TaxFormFinder. Use PA-40 Schedule SP to claim the Tax Forgiveness Credit for taxpayers who meet the qualifications to reduce all or a part of their Pennsylvania Tax Liability. Tax relief can be a big help because it can reduce or even completely negate the taxes you owe. What is Tax Forgiveness. The Resident Credit is a credit for gross or net income taxes paid to other states or foreign countries by Pennsylvania residents. Taxpayers eligible for PA Tax Forgiveness may also qualify for the federal earned income tax credit. ...