A new tax credit is available this year for certain Pennsylvania residents as part of the state’s current budget.
The credit, known as the ALICE Tax Credit, or the Working Pennsylvanians Tax Credit, provides eligible taxpayers with a credit equal to 10 percent of their federal Earned Income Tax Credit.
Eligibility for the credit is based on household income and the number of dependents claimed by the taxpayer. The program is intended for working residents who qualify for the federal Earned Income Tax Credit.
Taxpayers who qualify for the federal credit may also be eligible for the new state credit when filing their Pennsylvania tax returns.
More information about the program and eligibility requirements is available through the state’s website at PA.gov.
