Child and Dependent Care Enhancement Tax Credit

Pennsylvania offers a state tax credit that can help ease child and dependent care costs for working families. Eligible Pennsylvanians can claim the Child and Dependent Care Enhancement Tax Credit when they file their Pennsylvania 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. Amounts may be less if limited by childcare expenses of less than $3,000.

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 it will be:

The maximum credit will be $1,050 (one child/dependent) or $2,100 (two or more children/dependents)

The credit cap phases down as income levels increase.

The minimum credit will be $600 (one child/dependent) or $1,200 (two or more children/dependents), provided expenses are at least $3,000 per child/dependent.