Eligible taxpayers can receive substantial financial relief for child and dependent care expenses thanks to Governor Shapiro’s work to expand the tax credit

Harrisburg, PA — With the deadline to file personal income tax returns less than three weeks away, the Department of Revenue is encouraging eligible Pennsylvanians to take advantage of the Child and Dependent Care Enhancement Tax Credit.

This credit puts money back into the pockets of working families with children in daycare and others who are caring for a family member. Governor Josh Shapiro was instrumental in expanding the credit to ease child and dependent care costs for Pennsylvanians.

“Last year, this credit delivered $136.3 million to around 219,000 working families. 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,” said Secretary of Revenue Pat Browne. “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.”

Who Qualifies & How Much is Available?

The state Child and Dependent Care Enhancement Tax Credit is based off the federal Child Care Tax Credit. The state credit was expanded thanks to the work of Governor Shapiro, who pushed for the state credit to be equal to 100% of the federal credit. Here’s what that amounts to for eligible Pennsylvanians:

• Maximum credit: $1,050 (one child/dependent) or $2,100 (two or more).
• Minimum credit: $600 (one child/dependent) or $1,200 (two or more), provided expenses are at least $3,000 per child/dependent.
• The credit cap decreases as income levels increase.

To claim the Pennsylvania Child and Dependent Care Enhancement Credit, 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.

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.

Filing Available Through myPATH

Eligible Pennsylvanians can claim the Child and Dependent Care Enhancement Tax Credit when filing their Pennsylvania Personal Income Tax Return (PA-40). When filing, they will need to complete the PA Schedule DC form to report information based on their dependents and the expenses incurred for their care. Additionally, completed versions of Federal Form 2441 and 1040 Schedule 3 must be attached to the PA-40.

You can easily file your PA-40 form for free using myPATH, the Department of Revenue’s free online filing system. Many taxpayers can file the PA-40 without the need to create a username or password. myPATH also allows taxpayers to make income tax payments and check the status of their refunds.

The deadline to file 2024 personal income tax returns is April 15, 2025.