Philadelphia Double-Taxed Wages, Taxpayer Tells State High Court

Philadelphia owes resident Diane Zilka a refund of some of the city and state income taxes she paid while working in another state, she told the Pennsylvania Supreme Court.

Zilka, who lived in Philadelphia while working in Wilmington, Del., sought a refund under the Philadelphia wage tax for income taxes paid to Delaware between 2013 and 2016 that exceeded her Pennsylvania state tax credit. The case raises an issue that the state high court has never addressed.

A January appeals court ruling upholding denial of the refund “injected confusion and uncertainty into Pennsylvania law by misinterpreting the legal analysis ...