Please ensure Javascript is enabled for purposes of website accessibility Rep. Joe McAndrew | Childcare Tax Credit

 

I helped pass a transformative Childcare/Dependent Care Tax Credit this past year that triples the money parents can get back for their 2023 taxes. Pennsylvania's updated state tax credit can help ease child and dependent care costs for working families. Eligible Pennsylvanians must file a PA Schedule DC Form to claim the Child and Dependent Care Enhancement Tax Credit when filing their PA Personal Income Tax Return (PA-40). This credit can range between $600 and $2,100, depending on your income level and the number of your dependents.

The Child and Dependent Care Enhancement Tax Credit that is available to Pennsylvanians is based on the federal Child and Dependent Care Tax Credit. That means that taxpayers must receive the federal credit to also be eligible for the state credit in Pennsylvania. The state credit is equal to 100 percent of the federal credit, meaning: 

  • The maximum credit will be $1,050 (one child) or $2,100 (two or more children).
  • The credit cap phases down as income levels increase.
  • The minimum credit will be $600 (one child) or $1,200 (two or more children).

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.

This credit is refundable, meaning qualified taxpayers will not owe any state taxes on the amount they receive.

For more information on how to apply, please contact my office at 412-793-2448.