Hoffman was born in Rochester, New York, the son of Marilyn L. O'Connor, a family court judge, lawyer and civil rights activist, and Gordon S. Hoffman, a former Xerox executive. He has two sisters, Jill and Emily, and a brother, Gordy Hoffman, who scripted the 2002 film Love Liza, in which Philip starred. Hoffman has Irish ancestry; his father was Protestant and his mother was Catholic, but Hoffman was not raised with a deep commitment to either religious tradition. Hoffman's parents divorced when he was nine years old. His first acting role was as Radar O'Reilly in Fairport High School's production of MASH directed by Marjorie Marshall in 1982.
Hoffman attended the 1984 Theater School at the New York State Summer School for the Arts. He received a BFA in drama in 1989 from New York University's Tisch School of the Arts. At NYU, he was a founding member of the notoriously short-lived and volatile theater company the Bullstoi Ensemble with actor Steven Schub and director Bennett Miller.
He was college roommates at NYU's Tisch School of the Arts with actor Steven Schub (lead singer of ska band The Fenwicks) and Jimmie Corrieri (guitarist of The Fenwicks). Soon after graduating, he went to rehab for drug and alcohol addiction and has since remained sober.
Hoffman is in a relationship with costume designer Mimi O'Donnell. They met while working on the 1999 play "In Arabia We'd All Be Kings," which Hoffman directed. They have a son, Cooper Alexander, born in March 2003, and a daughter, Tallulah, born in November 2006. In September 2008, it was announced that Hoffman and O'Donnell were expecting their third child together Hoffman is also a fan of the New York Mets baseball team.
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