A $25 million program will give hundreds of thousands of inflation-weary Americans up to $630 in cash.
The Pennsylvania plan provides child tax credits for families trying to make ends meet as fuel and food prices continue to rise.
Pennsylvania Gov. Tom Wolf has released new details about the program to improve care for children and dependents.
The plan benefits working families who pay for their children’s day care and already qualify for the federal program.
Qualifying Pennsylvania families will be able to claim the state tax filing credit starting in 2023.
Households earning less than $43,000 can receive $315 for one child or $630 for two or more children.
While families earning more than $43,000 can get $180 for one child and $360 if they have two or more children.
The Pennsylvania Senate first approved the budget earlier this month.
It is estimated that nearly 221,000 families in the state will benefit from the refundable tax credit.
“Cost should never be a barrier to parents looking for an educational, safe, supportive and fun environment for their children while they are at work every day,” Gov. Wolf said in a recent press release.
He continued, “I wanted to create this State Child Care Tax Credit to support our hard working families, our workforce, our children and our mutual success in this Commonwealth.”
The state childcare tax credit is 30% of the expenditure approved by the federal government.
What is the federal child allowance in 2022?
Millions of American taxpaying parents across the country will see the child tax credit fall back to $2,000 per child this year.
This is consistent with the program President Biden offered prior to the implementation of the expanded 2021 expansion to provide pandemic relief to hard-hit families.
In 2021 alone, the child tax credit was $3,600 for children under the age of six and $3,000 for children between the ages of six and 17.
For the 2022 tax year, federal funds will be distributed in the form of a single year-end tax credit under the previous Internal Revenue Service (IRS) program.
Here is more from The Sun on federal child tax credits and how they differ from last year.
We also explain what parents who have joint custody of children need to know about paying the child tax credit.
Hundreds of Thousands of Americans Get Up to $630 in Payments Thanks to the $25 Million Pot – Are You Eligible?