PA-40 Schedule DC: 2024 PA Schedule DC - Child and Dependent Care Enhancement Tax Credit (PA-40 DC) (2024)

Who files this form

Use the 2024 PA Schedule DC to claim Pennsylvania’s Child and Dependent Care Enhancement Tax Credit. Pennsylvania residents who receive the federal credit under section 21 of the Internal Revenue Code may claim this credit. You must also have claimed the care expenses on your federal Form 1040.

The care expenses must be 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 was your dependent or could have been your dependent except that they had gross income of $5,050 or more, filed a joint return, or could have been claimed as a dependent on another taxpayer’s return.

Married taxpayers generally must file jointly. The instructions provide exceptions for people who are legally separated or meet all the requirements for married people living apart.

What you'll need

Include completed copies of federal Form 2441 and federal Form 1040 Schedule 3 with your PA Schedule DC and PA-40 filing.

Have the following information ready:

• The name and Social Security number shown first on your PA-40, plus your spouse’s name and Social Security number where applicable.
• Each care provider’s name, full address, Social Security number or Federal Employer Identification Number, and amount paid.
• Each qualifying person’s first and last name, date of birth, Social Security number or Individual Taxpayer Identification Number, relationship to you, and qualified expenses from federal Form 2441, Part II, Line 2(d).

Submit additional Schedules DC if you have more than five care providers or more than five qualifying persons.

How to file

File PA Schedule DC with your PA-40 return, including completed copies of federal Form 2441 and Form 1040 Schedule 3. The supplied text does not give a mailing address or e-filing directions.

To complete the schedule:

1. Enter your identification information, using the name and Social Security number shown first on the PA-40.
2. In Section I, list each care provider, their full address, identification number and ID type, and the amount paid.
3. In Section II, list each qualifying person and their information. Enter dates of birth as MM/DD/YYYY and qualified expenses from federal Form 2441, Part II, Line 2(d).
4. In Section III, Line 1, enter the total number of qualifying persons from all your Schedules DC.
5. On Line 2, enter the amount from federal Form 2441, Line 9a. Also enter that amount on PA-40, Line 23. The instructions say the credit cannot exceed the chart limit based on the number of dependents and Pennsylvania taxable income.

Common mistakes

• Leaving out federal attachments. The instructions warn that failing to include completed federal Form 2441 and Form 1040 Schedule 3 will cause the credit to be removed or deducted from PA-40, Line 23.
• Claiming expenses only on the Pennsylvania return. You must also claim the expenses on your federal Form 1040.
• Claiming the credit while married filing separately without meeting the exception. If you meet the eligibility requirements, check the oval provided on the schedule.
• Not adding extra schedules. Additional Schedules DC are required for more than five care providers or more than five qualifying persons.
• Confusing expense limits with the credit amount. Expenses used to calculate the credit are capped at $3,000 for one qualifying person or $6,000 for two or more. The credit calculation uses 35% to 20% of those expenses, depending on income.

Questions people ask

Is this credit refundable?

Yes. Qualified taxpayers receive a refund of the credit amount that exceeds their tax liability.

Can I qualify if I am married filing separately and living apart from my spouse?

You are treated as unmarried for this credit if all these conditions apply: you are married, file a separate return, maintain a home that is a qualifying individual’s principal home for more than half the tax year, pay more than half the cost of maintaining that household, and your spouse is not a member of the household during the last six months of the tax year. If you meet all these requirements, you can generally take the credit and should check the exception oval on the schedule.

What if a child was born and died in 2024 without a Social Security number?

Enter “Died” in the qualifying person’s Social Security number or ITIN field.

Which ID oval should I select for someone who only has an Adoption Taxpayer Identification Number?

Fill in the SSN oval if the qualifying person only has an ATIN.

Official sources

• https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/pit/documents/2024/2024_pa-40dc.pdf