PA-40 Schedule DC: 2025 PA Schedule DC - Child and Dependent Care Enhancement Tax Credit (PA-40 DC) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-40 Schedule DC is used to claim Pennsylvania’s Child and Dependent Care Enhancement Tax Credit for care expenses paid. It reports care provider information, amounts paid, qualifying persons and expenses, and the credit amount to enter on your PA-40.
Who files this form
Pennsylvania residents use Schedule DC to claim the Child and Dependent Care Enhancement Tax Credit for care expenses paid. You must receive the federal credit under section 21 of the Internal Revenue Code and must also claim the 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 unable to care for themselves and lived with you for more than half the year.
- Another person who was physically or mentally unable to care for themselves, lived with you for more than half the year, and was your dependent or could have been your dependent except for gross income of $5,050 or more, filing a joint return, or being claimable as a dependent on another taxpayer’s return.
Married taxpayers generally must file jointly. The instructions treat someone legally separated under a decree of divorce or separate maintenance as unmarried.
If you are married and file separately, you can generally claim the credit only if you maintained a home that was a qualifying person’s principal home for more than half the tax year, paid more than half the cost of maintaining it, and your spouse was not a household member during the last six months of the tax year.
What you'll need
Include completed copies of your federal Form 2441 and Form 1040 Schedule 3 with Schedule DC when filing your PA-40.
Have these details ready:
- Your name and Social Security number as shown first on the PA-40, plus your spouse’s name and Social Security number if 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, birth date, Social Security number or Individual Taxpayer Identification Number, and relationship to you.
- Qualified expenses for each person from federal Form 2441, Part II, Line 2(d).
- The credit amount from federal Form 2441, Line 9a.
Use additional Schedules DC if you have more than five care providers or more than five qualifying persons.
How to file
Complete Schedule DC and include it with your PA-40 filing, along with completed copies of federal Form 2441 and Form 1040 Schedule 3.
- In Section I, list each care provider’s information and the amount paid. Mark the oval for the provider’s ID type.
- In Section II, list each qualifying person and their qualified expenses. Enter birth dates as MM/DD/YYYY and mark the appropriate ID type.
- On Section III, Line 1, enter the total number of qualifying persons from all your Schedules DC.
- On Section III, Line 2, enter the amount from federal Form 2441, Line 9a. Also enter this amount on PA-40, Line 23.
If you file as married filing separately and meet the eligibility requirements, mark the eligibility oval on Schedule DC.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out federal forms. The instructions warn that failing to include completed federal Form 2441 and Form 1040 Schedule 3 will result in the credit being removed or deducted from PA-40, Line 23.
- Claiming expenses only on the Pennsylvania schedule. You must also claim them on your federal Form 1040.
- Claiming the credit while married filing separately without meeting the exception. Check the eligibility requirements before claiming it.
- Not adding schedules when needed. Additional schedules are required for more than five care providers or more than five qualifying persons.
- Exceeding the credit limit. The instructions say the credit cannot exceed the chart amount based on the number of dependents and Pennsylvania taxable income.
Questions people ask
Is this credit refundable?
Yes. Qualified taxpayers receive a refund if the credit exceeds their Pennsylvania tax liability.
How much in care expenses can be used to calculate the credit?
The expense limit is $3,000 for one qualifying person or $6,000 for two or more qualifying persons. The instructions describe a credit calculation starting at 35% of those expenses and decreasing to 20% at higher income levels. The Pennsylvania credit is 100% of that calculated amount.
What if my child was born and died in 2025 without a Social Security number?
Enter “Died” in the Social Security number or ITIN field.
Which ID oval should I mark if a qualifying person only has an Adoption Taxpayer Identification Number?
Mark the SSN oval if the person only has an ATIN.