HARRISBURG, PA — With the April 15, 2025, deadline to file 2024 personal income tax returns fast approaching, the Pennsylvania Department of Revenue is urging residents to take full advantage of the Child and Dependent Care Enhancement Tax Credit. This program, designed to reduce financial burdens on working families, provides significant relief for those with childcare expenses or dependents requiring care.
“This credit delivered $136.3 million to around 219,000 working families last year,” said Secretary of Revenue Pat Browne. “That is tremendous relief that is reaching Pennsylvanians because of Governor Shapiro’s efforts to secure bipartisan support for the legislation that expanded this credit. We strongly encourage all qualified taxpayers with dependents to take advantage of the credit when filing their tax returns this tax season. It can make a huge difference for working families across the Commonwealth.”
The tax credit program, expanded under Governor Josh Shapiro, matches 100% of the federal Child Care Tax Credit. This initiative ensures families receiving the federal credit also qualify for additional state funding. The credit is refundable, meaning eligible taxpayers will receive the full amount as a refund after covering any state tax liabilities.
Eligibility and Benefit Details
Eligible Pennsylvanians can claim the credit if they incurred expenses for dependent care for the following groups:
- A child under the age of 13.
- A spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
- Any physically or mentally incapable individual who lived with the taxpayer for more than half the year and either qualifies as a dependent or could qualify except for specific income or filing conditions.
The credit amounts are as follows:
- Up to $1,050 for one dependent or $2,100 for two or more dependents.
- Minimum credit levels of $600 (one dependent) or $1,200 (two or more) as long as care expenses totaled at least $3,000 per dependent.
The credit is tiered, with benefit amounts decreasing as household income increases.
Filing Process
Pennsylvania taxpayers can claim this credit by submitting the PA Schedule DC form when filing their state income taxes. They must also attach Federal Form 2441 and 1040 Schedule 3 to their Pennsylvania Personal Income Tax Return (PA-40).
The Department of Revenue encourages residents to use myPATH, a free online tax filing system, to submit their PA-40. The platform provides a straightforward filing process, eliminating the need for a username or password, and includes features for making income tax payments and tracking refund status.
Residents are reminded that the filing deadline for 2024 tax returns is April 15, 2025. The Department of Revenue continues to urge eligible taxpayers to seize this opportunity for financial relief.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.