Tuition Support

A tax credit is even more valuable to families than a tax deduction! It’s a dollar-for-dollar reduction in the taxes you owe. Some credits are refundable—reducing taxes otherwise owed to zero and paying a refund.

NEW federal tax benefits:

The American Rescue Plan Act enhanced the benefits of families with children and child care specifically. The details of the new benefits can be hard to understand, so we’re here to break it down.

Under current federal law, eligible families can claim 2021 child care tax credits up to the following maximum amounts:

• $2,000 per qualifying dependent under the age of 17. The credit is partially refundable. Some taxpayers may be eligible for a refund of up to $1,600 per child. The credit amount decreases if your modified adjusted gross income exceeds $400,000 (married filing joint) and $200,000 (all other filers).

There are rules for these federal tax credits, so please speak to your tax advisor about how they apply to your family. In the meantime, this child care tax credits calculator is a quick tool for a broad estimate.

State tax benefits:

Each state offers different tax credits to offset the cost of child care. See what benefits might be available to you in Pennsylvania

If your family needs help with child care tuition, state, local and specialized assistance programs may be available to help make care more affordable. Child Care Aware of America’s resource map is a great starting point for finding financial assistance resources available in your area.

Pennsylvania families may also explore Child Care Works, administered through the Early Learning Resource Center (ELRC), for help with child care costs. Military personnel and their families may qualify for additional child care support through Military Child Care in Your Neighborhood (MCCYN).

More and more employers are adding child care benefits to their employee compensation packages because it’s hard to do your job without reliable child care! Eligible employee child care discounts start at 50%, helping make quality care even more affordable for working families.

Talk with your employer or HR department to find out if they offer child care benefits, whether you qualify, and how to take advantage of your available discount.

Magic Memories is proud to offer a 5% child care discount to eligible families, including First Responders (Law Enforcement, Firefighters, EMS, Paramedics and Nurses), active U.S. Military members and Veterans, Teachers and qualifying faculty/support staff, and families with two children enrolled full-time. One discount may be applied per family. Contact us to learn more and see if you qualify.