Wage taxes paid to Philadelphia may apply as a credit directly against local tax liability. This credit is entered on Line 12 of the Declaración final anual del impuesto sobre la renta del trabajo local. This credit will be denied if taxpayers fail to provide supporting documentation, including a W-2 and/or other verification of tax paid to Philadelphia. No refund or credit will be allowed for any overpayment made to Philadelphia. Credit cannot exceed local tax liability. Credit may not be transferred to spouse or next year’s tax liability