Families will now be able to claim more with the Child Tax Credit than before.
This is thanks to Pennsylvania’s new budget.
Homeownership: 3 things to consider when purchasing a home in 2022
Child care tax credit
Part of Pennsylvania’s new $45.2 billion budget, an additional permanent child care tax credit. If you’re looking to claim the updated Child Tax Credit, it starts in 2023. When you file your state taxes, it will be deducted from the residents taxes owed to the state, unless the state owes you money.
The child care tax credit is modeled off of the federal Child Tax Credit. This program allows taxpayers to get back up to 30% of child care expenses. The program aims to help working families.
$24.6 million went into the Child and Dependent Care Enhancement Program. Now, this is a permanent part of Pennsylvania’s tax code.
Eligibility requitements are still being adjusted by the House budget committee. Reports indicate that the rules will likely be similar to those for the federal child tax credit.
Taxpayers who care for one dependent can’t claim more than $3,000 in expenses each year. People caring for two or more dependents cannot claim more than $6,000.
It is estimated that individuals will have to have an income below $75,000 to qualify and below $150,000 for joint filers.
Tax relief in Massachusetts: Who is eligible and how much?
