Guide to Tax Credits

Discover vital childcare tax credit opportunities for families in Pennsylvania 

This guide is your comprehensive resource for maximizing tax savings. Explore valuable credits like the Earned Income Tax Credit (EITC), providing relief for low- to moderate-income workers. Delve into the Child and Dependent Care Credit, offering significant savings for childcare expenses. Learn about VITA, offering free tax assistance for eligible families. Additionally, discover the New PA Child Care Tax Credit, providing relief for working families with dependents. With insights on eligibility, benefits, and filing procedures, this guide equips you with the knowledge to make the most of available tax credits and ease your financial burden.

Employer Child Care Contribution Tax Credit Program

The Employer Child Care Contribution Tax Credit Program encourages Pennsylvania businesses to support their employees who have children in eligible child care or early learning programs. Employers can receive a state tax credit when they make contributions toward their employees’ child care costs. The program also ensures that licensed child care providers can easily participate.

Earned Income Tax Credit

The CONNECT Helpline assists in locating resources and finding information The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and their families get a tax break. If employees qualify, they can use the credit to reduce the taxes they owe – and maybe increase their refund. Share this link to the IRS EITC overview and guidelines to determine if employees qualify.
 

Child and Dependent Care Credit

Employees who had to pay someone to care for their child, dependent, or spouse in order to work, look for work, go to school, or because of a disability can receive a tax credit. The Child and Dependent Care Credit is 20-35% of costs up to $3,000 for care-related costs for a child under 13, an incapacitated spouse or parent, or another dependent (and up to $6,000 of expenses for two or more dependents).

VITA

VITA (Volunteer Income Tax Assistance). Many working families qualify for free income tax assistance through the VITA program. Trained volunteers are available to assist individuals earning up to approximately $57,000 compete their tax return. They are also skilled at helping families with children claim the Child and Dependent Care Credit, Earned Income Tax Credit and the Child Tax Credit Cost savings like these can help families better afford quality child care!

New PA Child Care Tax Credit (2022)

Discover Pennsylvania's Child and Dependent Care Enhancement Tax Credit, offering relief for working families. Ranging from $600 to $2,100, this credit eases care expenses, aligning with federal guidelines. Qualifying expenses cover dependents under 13 or those physically or mentally incapable of self-care. Refundable and accessible via PA Schedule DC, it's easily claimed alongside federal credits. Utilize myPATH, the Department of Revenue's online platform, for seamless filing.