Good News: PA Tripled the Child and Dependent Care Tax Credit for Working Families!

It may be tax season again, but this year there is good news for local families.

It may be tax season again, but this year there is good news for local families.

Pennsylvania tripled the amount of its Child and Dependent Care Tax Credit! Now it matches the eligibility requirements and amount of the federal tax credit.

Child care can be one of the most expensive items in the household budget, but it is an absolute necessity to many Pennsylvania workers. This tax credit will help families offset a part of the burden of rising child care costs.

This year, more than 210,000 families across Pennsylvania – almost 28,000 right here in Philadelphia -- qualify for the tax credit, which can be claimed by families who paid for child care OR for dependent care for a family member who was physically or mentally unable to care for themself in 2023.

This credit can range between $600 and $2,100 depending on your income level and the number of your dependents.

  • The maximum credit will be $1,050  for one child or dependent or $2,100 for two or more children or dependents.?
  • The minimum credit will be $600 for a family with one child or dependent or $1,200 for a family with two or more children or dependents as long as the expenses are at least $3,000 per child or dependent.

This is great news for families, but also for businesses and employers who depend on workers having safe, reliable child or dependent care so employees can go to work.

To receive the tax credit a family must file a 2023 tax return. And an easy way to file your state personal income tax (PA-40) and the Schedule DC (an additional form to receive the tax credit) is to use myPATH, which is the PA Department of Revenue's free online filing system. This system is user-friendly and walks?? the taxpayer through all the necessary steps for filing your PA return.

This newly enhanced tax credit is just one example of a state programs that I am working to improve to help Pennsylvanians of all ages cut costs,  balance their budgets, and thrive in our community.

Since 2023 when House Democrats started leading the state House, we’ve expanded the Property Tax/Rent Rebate Program, offered free breakfast to every public school student, invested $175 million in repairing school buildings and removed barriers to recruiting more police officers.  

For questions about these initiatives and others, call 215-748-6712 or stop by my office at 149 S. 60th St.; we’d love to help.

PA Speaker of the House Joanna McClinton represents the 191st District, which includes portions of Philadelphia and Delaware County.