West Chester, Pa (Diciembre 20, 2023) – More than 200,000 Pennsylvania families will see a boost in their 2024 tax returns thanks to an expansion of the Pennsylvania Child and Dependent Care Enhancement Tax Credit, state Senator Carolyn Comitta said today.
“As a mother, a grandmother and a former public school teacher, I know just how important quality childcare is in setting our children up for future success, while also giving parents the chance to return to the workforce, advance their careers, or pursue new job, educational, or entrepreneurial opportunities,” Comitta said. “This investment will provide welcome relief to families in Chester County and is expected to spur economic growth for years to come.”
Based on the federal Child and Dependent Care Tax Credit, the Pennsylvania Child and Dependent Care Enhancement Tax Credit was previously capped at 30 percent of the value of the federal credit. That provided caregivers with a maximum of $315 annually for a single dependent under 13 or $630 for two or more children, depending on income level.
Under the new law, the state credit is now equal to 100 percent of the federal credit, meaning families are now eligible for up to $1,050 for one dependent under 13 and $2,100 for two or more, depending on income. The minimum credit is $600 for one child or $1,200 for two or more children.
“Research has shown that a similar tax credit on the federal level significantly reduced childhood poverty, addressed food insecurity, and helped many families secure their finances. It was the right decision to expand our Pennsylvania credit to take another step toward making our Commonwealth a better place to live and raise a family,” Pennsylvania Secretary of Revenue Pat Browne said.
According to data from the Department of Labor, the median expected cost of childcare for younger children in 2022 ranged from $8,310 to $17,171. These costs have forced many women to leave the workforce, impacting their careers and financial stability.
The credit is refundable, meaning qualified taxpayers will earn the full amount of the credit in a refund, after accounting for any tax obligation due.
In order to claim the credit on your PA Personal Income Tax Return (PA-40), you must have incurred care expenses for:
- A dependent child under age 13.
- A spouse who was physically or mentally incapable of self-care and lived with you for more than half the year.
- An individual who was physically or mentally incapable of self-care, lived with you for more than half the year, and either:
- Was your dependent; or
- Could have been your dependent, except that he or she received gross income of $4,400 or more, filed a joint return, or could have been claimed as a dependent on another taxpayer’s return.
For more information, visit revenue.pa.gov.
###