The Wage Tax must be filed quarterly and paid on a schedule that corresponds with how much money is withheld from employees' paychecks. Tax filing and payment details for people who work in Philadelphia but don't have City Wage Tax withheld from their paycheck.Do I report that tax withholding on Line 10? No. Enter Philadelphia credits on Line 12. The makeup of this levy has changed, with proportionally more of the tax coming from Philadelphians and proportionally less from nonresidents. If you are a New Jersey resident with income from sources outside New Jersey, you may be eligible for a credit on your New Jersey tax return.