Last updated: June 20, 2026
Bottom line
Pennsylvania now has a state tax credit tied to the federal Earned Income Tax Credit. It is called the Working Pennsylvanians Tax Credit, or WPTC. For tax year 2025, the credit equals 10% of your federal EITC, up to $805. You must have Pennsylvania earned income, qualify for the federal EITC, and file both a federal Form 1040 and a PA-40.
Working parents should also check the Child Tax Credit, child care credits, Pennsylvania Tax Forgiveness, and any Philadelphia Wage Tax refund if city tax was withheld.
This guide is general tax information, not tax advice. Filing status, custody facts, Social Security numbers, child care records, income, and tax letters matter. Use official tax tools or free help before you file.
If you need urgent help now
Tax credits can help, but they are not same-day emergency aid. If you are behind on rent, food, utilities, diapers, or child care, also check ASMOM’s emergency help, SNAP in Pennsylvania, TANF in Pennsylvania, and housing help pages for help that may be available during the year.
If you received an IRS letter, a Pennsylvania Department of Revenue notice, or a Philadelphia Wage Tax notice, do not ignore it. Read the deadline first. If you do not understand the letter, ask a VITA site, a Low Income Taxpayer Clinic, the Taxpayer Advocate Service, or the Pennsylvania Department of Revenue for help before the deadline.
Where to start
Start with the federal return. Pennsylvania’s new WPTC depends on your federal EITC, and the Pennsylvania child care credit depends on the federal care credit. ASMOM’s tax help guide can help you understand the bigger tax picture, but use the official IRS and Pennsylvania links in this article before you file.
1. Check federal EITC
Use the EITC Assistant if you worked in 2025 and your income was low or moderate. The answer affects both federal EITC and Pennsylvania WPTC.
2. File PA-40
Use PA filing options to file your Pennsylvania return. myPATH can file a PA return for free and may reduce errors.
3. Add state forms
Use PA Schedule DC for the state child care credit and PA Schedule SP for Tax Forgiveness when they fit your case. Do not skip these just because income is low.
4. Get help early
Use the IRS VITA locator or PA 211 VITA if you want free filing help. Ask whether the site can handle Pennsylvania and local tax questions.
For a wider list of benefits and local help, use ASMOM’s Pennsylvania grants guide. It covers help beyond tax season.
Quick credit table
| Credit or refund | What it may help with | Where to claim it | Reality check |
|---|---|---|---|
| Federal EITC | Refundable credit for many workers with low or moderate income | Federal Form 1040; Schedule EIC if claiming children | You need earned income and must meet IRS child, SSN, income, and filing rules. |
| Pennsylvania WPTC | State credit based on your federal EITC | PA-40 after claiming federal EITC | For 2025, it equals 10% of federal EITC, up to $805. |
| Child Tax Credit | Federal credit for qualifying children under age 17 | Schedule 8812 | SSN rules apply for the child and at least one filer. |
| Federal care credit | Child or dependent care costs that let you work or look for work | Federal Form 2441 | Provider information and receipts matter. |
| PA care credit | Refundable state credit tied to federal care credit | PA Schedule DC | You must qualify for the federal care credit first. |
| Tax Forgiveness | Can reduce or remove PA income tax for some low-income filers | PA Schedule SP | Eligibility income is not always the same as taxable income. |
Federal Earned Income Tax Credit
The federal EITC is for workers. Earned income can include wages, tips, self-employment income, gig work, and some disability pay before retirement age. It does not include child support, unemployment, Social Security, pensions, interest, dividends, or gifts. The IRS EITC page explains the basic rules.
For 2025 returns filed in 2026, the EITC tables list these maximum federal EITC amounts: $649 with no qualifying children, $4,328 with one qualifying child, $7,152 with two qualifying children, and $8,046 with three or more qualifying children. Your real credit may be lower.
| Qualifying children | 2025 federal EITC maximum | 2025 income limit, single or head of household | Possible PA WPTC maximum |
|---|---|---|---|
| 0 | $649 | $19,104 | About $65 |
| 1 | $4,328 | $50,434 | About $433 |
| 2 | $7,152 | $57,310 | About $715 |
| 3 or more | $8,046 | $61,555 | Up to $805 |
EITC rules that cause problems
- You and each child claimed for EITC generally need valid Social Security numbers issued by the return due date.
- A child usually cannot be claimed by two people for the same tax credit in the same year.
- The child must meet relationship, age, residency, and joint return rules.
- For 2025, investment income must be $11,950 or less to claim EITC.
- If the IRS denied EITC before, you may need Form 8862 before claiming it again.
Shared custody can be hard. The parent who receives child support does not automatically get the tax credits. If the child lived with both parents, get free tax help before filing. ASMOM also has a child support guide.
Pennsylvania Working Pennsylvanians Tax Credit
The old version of this article said Pennsylvania did not have a state EITC. That is now outdated. Pennsylvania created the Working Pennsylvanians Tax Credit for tax year 2025. The state says the credit is modeled after the federal EITC and equals 10% of the federal EITC, with a maximum of $805.
You may qualify if you have earned income in Pennsylvania, qualify for the federal EITC, and file both federal Form 1040 and a PA-40. The official Pennsylvania WPTC page also has an estimator, but the estimate is not a promise. Your final credit is based on your filed return.
The Department of Revenue says it will calculate the WPTC and apply it to reduce PA tax or increase your refund. If you file on paper, make sure you include a copy of your federal Form 1040 with your PA-40. If you e-file, your tax software may ask for your federal EITC amount.
Important WPTC note
Do not file a Pennsylvania return without first checking federal EITC. If the federal return is wrong, the state WPTC may also be wrong. If another parent may claim the same child, use VITA or another qualified tax helper before filing.
Child Tax Credit and ACTC
The Child Tax Credit is separate from EITC. You may qualify for one, both, or neither. The Child Tax Credit page gives the current IRS overview, and the Schedule 8812 instructions explain how the credit is figured.
For tax year 2025, the maximum Child Tax Credit is $2,200 per qualifying child. The maximum Additional Child Tax Credit is $1,700 per qualifying child. A qualifying child generally must be under age 17 at the end of the tax year and meet dependent rules.
For 2025, a valid Social Security number is required to claim the CTC or ACTC. On a joint return, one spouse must have a valid SSN, and the other spouse must have either an SSN or ITIN by the due date. ASMOM’s tax credits guide explains parent credits.
Refund delay warning
If your federal refund includes EITC or ACTC, the IRS cannot issue the refund before mid-February. This can hold the whole refund, not just the credit part. Use the IRS refund page after filing instead of sending a duplicate return.
Federal and Pennsylvania child care credits
If you paid for care so you could work or look for work, check the federal Child and Dependent Care Credit. The IRS Form 2441 instructions explain the rules for work-related care, qualifying people, and provider information.
For many families, the federal credit uses up to $3,000 of qualifying expenses for one qualifying person or $6,000 for two or more. The percentage depends on income. You usually cannot count care paid to your spouse, the child’s other parent when the child is under 13, or someone you can claim as a dependent.
Pennsylvania also has a refundable Child and Dependent Care Enhancement Tax Credit. The state says the credit can range from $600 to $2,100, depending on income level and number of dependents. It may be lower if your care expenses are lower. To claim it, file PA-40 and PA Schedule DC, and attach completed federal Form 2441 and federal Schedule 3. The official Pennsylvania care credit page explains this credit.
If child care costs are a problem right now, tax credits may not be enough because they come after you file. ASMOM’s Pennsylvania child care guide can help you look for help during the year.
Pennsylvania Tax Forgiveness
Tax Forgiveness is not the same as EITC, but it can reduce or remove Pennsylvania personal income tax for some low-income households. The Pennsylvania Department of Revenue says eligibility depends on marital status, family size, and eligibility income. It gives an example of a single-parent, two-child family qualifying with income up to $27,750.
To claim it, file PA-40 and complete PA Schedule SP. The official Tax Forgiveness page says you must file a state income tax return and include PA Schedule SP. Do not skip filing just because your income is low.
Tax Forgiveness uses eligibility income. This can include some items that are not taxed the same way on your PA return. If your income is mixed or unusual, ask a tax helper before guessing.
Philadelphia and local tax issues
Philadelphia income-based Wage Tax refund
If Philadelphia Wage Tax was withheld from your pay and you were approved for Pennsylvania Tax Forgiveness, you may be able to request an income-based Wage Tax refund. The City of Philadelphia says the 2025 Wage Tax rate was higher than the income-based rate, so some workers may get part of the withheld tax back if they qualify.
Use the Philadelphia wage refund instructions and the Philadelphia Tax Center to check how to file. This is only for people with Philadelphia Wage Tax withheld or paid. Keep copies of your W-2, PA-40, PA Schedule SP, and any city forms.
Free filing and free tax prep
IRS Free File is available for 2025 federal returns filed in 2026 if your adjusted gross income was $89,000 or less. Start from IRS Free File and read each partner offer carefully because state filing may be free with some offers and not with others.
For Pennsylvania, myPATH is the Department of Revenue’s free state filing system. The myPATH page can help you file returns, make payments, view notices, and manage accounts.
The Pennsylvania Department of Revenue lists Personal Income Tax help at 717-787-8201 and myPATH support at 717-425-2495, extension 72841. Use Revenue phone help to confirm the current number before calling.
Documents checklist
Bring records before you file. Missing paperwork can delay a refund or cause a credit to be denied. ASMOM’s documents checklist can also help you organize papers for benefits and aid applications.
| Bring this | Why it matters | Tip |
|---|---|---|
| Photo ID | Needed at many free tax sites | Bring a current ID if you have one. |
| SSN cards or letters | Needed for you and children claimed | Bring official proof, not just numbers. |
| W-2s and 1099s | Shows earned income and withholding | Ask the employer if a form is missing. |
| Child care receipts | Needed for Form 2441 and PA Schedule DC | Keep provider name, address, tax ID, and amounts paid. |
| Child residency proof | May be needed for EITC or CTC | School, doctor, child care, lease, or benefit records can help. |
| Tax letters | Shows what IRS, PA, or Philadelphia wants | Bring every page of the notice. |
If your income is not covering food, health care, or basic needs, tax credits are only one part of the plan. You may also need WIC in Pennsylvania or Pennsylvania health care during the year.
Common mistakes to avoid
- Using old Pennsylvania information. Pennsylvania now has WPTC for tax year 2025, so check the new state credit if you qualify for federal EITC.
- Not filing because income was low. Refundable credits usually require a filed return.
- Skipping PA Schedule DC. If you claim the federal care credit, check the Pennsylvania care credit too.
- Skipping PA Schedule SP. Tax Forgiveness may lower or remove Pennsylvania tax for some low-income filers.
- Claiming a child without checking custody rules. If another parent may claim the same child, ask for help before filing.
- Filing again because a refund is late. A duplicate return can create more delay.
- Ignoring tax letters. Open every letter and answer before the deadline when a response is required.
If your refund is delayed, denied, or offset
First, check official refund tools. If the IRS or Pennsylvania says a letter was sent, wait for the letter or sign in to your account when possible. The notice should say what happened, what to send, and by when.
If the IRS denied EITC, CTC, ACTC, or another credit, do not keep filing the same return. Read the reason and ask whether Form 8862, child residency proof, income records, or identity steps are needed. A Low Income Taxpayer Clinic can help some taxpayers with audits, collection, appeals, and tax court issues. Start with the IRS LITC map if a normal filing site cannot help.
If the problem is causing serious hardship and normal IRS steps are not working, contact TAS help for screening. If a benefits office, landlord, utility, or court deadline is part of the problem, ASMOM’s denied benefits guide and Pennsylvania legal help page can help you plan next steps.
Phone scripts you can use
Calling VITA or 211
“Hi, I am a parent in Pennsylvania and need free tax filing help. I may qualify for federal EITC, Pennsylvania WPTC, the Child Tax Credit, PA Schedule DC, and PA Schedule SP. Are you taking appointments, and what should I bring?”
Calling Pennsylvania Revenue
“Hi, I filed or need to file a PA-40. I have questions about the Working Pennsylvanians Tax Credit, Schedule DC, or Schedule SP. Can you tell me which form or notice I need to use?”
Calling a child care provider
“Hi, I am preparing my tax return. Can you give me a statement showing what I paid for child care in 2025 and your name, address, and EIN or taxpayer ID for Form 2441?”
Calling Philadelphia Revenue
“Hi, Philadelphia Wage Tax was withheld from my pay, and I may qualify for Pennsylvania Tax Forgiveness. Can you tell me how to request the income-based Wage Tax refund and what documents I need?”
Backup options if tax credits are not enough
Tax refunds can help, but they arrive after filing and can be delayed. If you need food, health coverage, child care, rent help, school meals, diapers, or cash assistance, do not wait for tax season. Check public benefits, county programs, schools, clinics, and local nonprofits too.
If child care costs are blocking work or school, apply for child care subsidy help. If a refund problem puts housing at risk, contact 211, legal aid, and your county assistance office.
Resumen en español
Si vive en Pennsylvania y trabajo en 2025, revise primero el EITC federal. Pennsylvania ahora tiene el Working Pennsylvanians Tax Credit. Para 2025, este credito estatal es 10% de su EITC federal, hasta $805.
Tambien revise el Child Tax Credit, el credito federal por cuidado de niños o dependientes, el credito estatal de cuidado, y Tax Forgiveness. Guarde sus W-2, 1099, numeros de Seguro Social, recibos de cuidado infantil y cartas del IRS o del estado.
Si no sabe como presentar, busque ayuda gratis con VITA, PA 211 o el Departamento de Revenue de Pennsylvania. Si trabaja o vive en Philadelphia, revise tambien el reembolso de Wage Tax basado en ingresos.
FAQ
Does Pennsylvania have a state EITC?
Pennsylvania has the Working Pennsylvanians Tax Credit for tax year 2025. It is modeled after the federal EITC and equals 10% of your federal EITC, up to $805.
Who qualifies for the Working Pennsylvanians Tax Credit?
You may qualify if you have earned income in Pennsylvania, qualify for the federal EITC, and file both federal Form 1040 and a PA-40 Pennsylvania return.
Can I claim child care costs in Pennsylvania?
Maybe. You must first qualify for the federal Child and Dependent Care Credit. Then you may be able to claim Pennsylvania’s refundable care credit on PA Schedule DC.
What if my child’s other parent claims the child?
Do not guess. Tax credits have rules about where the child lived, who can claim the child, and whether a release form applies. A VITA site, Low Income Taxpayer Clinic, or qualified tax preparer can review your facts.
How can I file for free?
Check IRS Free File if your income fits the current limit, use a VITA site if you qualify, or file Pennsylvania taxes through myPATH. Some VITA sites can help with federal, state, and local returns.
Why is my refund delayed?
Refunds with EITC or ACTC cannot be issued before mid-February by law. Refunds can also be delayed by missing forms, identity checks, wrong banking details, paper filing, or tax notices.
About this guide
This guide uses official federal, state, local, and other high-trust nonprofit and community sources mentioned in the article.
A Single Mother is independent and is not a government agency, benefits office, lender, law firm, medical provider, or tax advisor.
Program rules, funding, local availability, and eligibility can change. Always confirm details with the official program before you apply or make decisions.
Verification: Last verified June 20, 2026, next review September 20, 2026.
Corrections: If you see something wrong or outdated, email suggestions@asinglemother.org.
Disclaimer: This article is for general information only. It is not legal, financial, medical, tax, immigration, disability, safety, or government-agency advice.