by Danielle Smith, Keystone State News Connection
Pennsylvania families facing challenges with child and dependent care expenses may now benefit from a significant state tax break.
The expansion of the Child and Dependent Care Enhancement Tax Credit is expected to directly benefit almost 210,000 working families in Pennsylvania by providing them with additional financial support when they file their income taxes.
Gillian Kratzer, deputy director of the advocacy group Better Pennsylvania, said the tax credit expansion is a substantial benefit, as it increased from $600 to $2,100.
“Anybody who has experienced the cost of child care and dependent care for folks with intellectual or physical disabilities is extraordinarily expensive,” Kratzer pointed out. “And often out of reach for many families.”
To claim the enhanced tax credit on your personal income tax return, you must have incurred care expenses for a dependent child under 13 or a spouse or dependent adult who was incapable of self care. She added the credit is refundable, meaning you would not owe any state taxes on the amount you receive.
Kratzer noted the state’s tax credit amount is based on the federal Child and Dependent Care Tax Credit, income levels, and the number of dependents.
“It does vary based on the number of dependents,” Kratzer pointed out. “For one child, the max is $1,050; for two or more, the max is $2,100.”
She recommended people visit the website revenue.pa.gov for information about the tax credit and filing process.
Her group applauded Gov. Josh Shapiro’s administration for the tax credit, which she emphasized demonstrates its commitment to supporting working people.
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Source: bctv