So far, states have been focusing on sending direct relief to families via stimulus checks. Now, it seems that states have shifted focus to child tax credits (CTC). Many states have already implemented new child tax credit programs, and the latest to join the list is Pennsylvania. This new child stimulus check from Pennsylvania is part of the state’s new $45.2 billion budget. Under the new program, families can claim thousands of dollars in benefits.
New Child Stimulus Check From Pennsylvania: What Is It?
Gov. Tom Wolf approved the new budget, including the new child tax credit program, in early July. The budget allots $24.6 million for the program. The program aims to help working families by reducing their tax liability.
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Pennsylvania’s new CTC program will allow filers to claim up to 30% of childcare-related expenses on their federal return. The new CTC program, called the Child and Dependent Care Enhancement Program, is modeled after the federal Child Tax Credit.
Talking about the eligibility, taxpayers with one or more dependents and those meeting the income eligibility will be able to claim the new child stimulus check. Those with one dependent can claim up to $3,000 in expenses, while those with two or more dependents can claim a maximum of $6,000.
Moreover, the percentage of expenses that a taxpayer can claim would also vary on the basis of their income level. A point to note is that the authorities have yet to finalize all the details of the program. It is believed that the rules will be similar to the federal tax credit. Last year, couples with income of up to $150,000 (up to $75,000 for single filers) were eligible to claim the full federal tax credit.
Taxpayers will be allowed to claim the new child stimulus check from Pennsylvania by filing state taxes in 2023. The credit amount will be used to reduce the filer’s tax liability. In case the credit amount is more than the amount of taxes owed to the state, the balance credit will be refunded to the taxpayer.
Pennsylvania Boosts Property Rebate As Well
Along with the new child tax credit program, the budget also boosts the state’s Property Tax/Rent Rebate Program. So far, eligible Pennsylvanians have been allowed to claim rebates of between $650 to $975 depending on the filer being a renter or homeowner.
This year’s budget, however, allots $140 million more to boost the rebate for the current year by 70%. So, if a person got $650 last year, he or she will get $455 more in a rebate this year.
Pennsylvanians 65 or older, widowed people over 49 years, and people with disabilities age 18 and older, are eligible for this benefit. Talking about income eligibility, homeowners with annual income less than $35,000 and renters with annual income under $15,000, are eligible for this rebate.
