Pennsylvania’s Child and Dependent Care Enhancement Tax Credit was expanded under a law passed by the PA state legislature.
This credit provides financial relief to taxpayers with child or dependent care expenses. It matches 100% of the federal Child Care Tax Credit, offering a maximum of $1,050 for one child or dependent and $2,100 for two or more, with minimums of $600 and $1,200, respectively. Eligibility includes expenses for children under 13, spouses, or other dependents who are physically or mentally incapable of self-care. The credit is refundable, meaning taxpayers can receive a full refund after meeting their tax obligations.
To claim the credit, taxpayers must file a PA-40 form along with PA Schedule DC, Federal Form 2441, and 1040 Schedule 3. The PA Department of Revenue encourages filing through myPATH, Pennsylvania’s free online tax filing system.
Learn more about this tax credit HERE.