Randy Grossman likes numbers — a perfect pre-requisite for a volunteer tax preparer.

“I’ve always been interested in tax law and the tax system. If I were king, things would be different,” Grossman jokes. He works with the Volunteer Income Tax Service in Ephrata, Pennsylvania, a United Way program that helps middle and low income Pennsylvanians find all their eligible tax benefits.

There are five updates to tax policy and two continuing programs that Grossman sees impacting Pennsylvania clients in his work for 2026.

Working Pennsylvanian Tax Credit

The Earned Income Tax Credit at the federal level gives a refund to taxpayers that work, but earn less than ~$50,000 a year. The refund amount varies on income level and children, ranging from $4,000-$8,000 for households with kids.

Part of the four-month-late state budget, a new Working Pennsylvanian Tax Credit matches 10% of the federal credit.

“Even if you don’t pay taxes, its a credit so you still get a refund. Democrats like it because it serves people who are low to middle income. Republicans like it because you got to work in order to get it,” Grossman says.

The Pennsylvania Department of Revenue estimates over 940,000 Pennsylvanians will qualify for the state matching, ranging up to $804 additional on a tax return. An online tool helps commonwealth residents determine their eligibility.

Grossman warns that refunds are a little slow this year; the Pennsylvania state budget was passed so late last year (November 12) that it was too late to add the credit into tax software. Pennsylvania’s Department of Revenue is confirming Working Pennsylvanian Tax Credits in house.

Other Notable State Tax Policy

Pennsylvania continues its matching of the federal Childcare Tax Credit, which helps parents get a refund for their childcare expenses.

The Property Tax/Rent Rebate program is also still available for senior citizens and Pennsylvanians with disabilities. The program gives up to $1,000 refund for mortgage or rental payments for low and middle income qualifying Pennsylvanians; the qualifying income level was raised up to around $45,000 from $15,000 several years ago. Over 513,000 Pennsylvanians got $315 million in money back in 2025.

Federal Tax Policy

There are four major updates for the average personal income tax filing in effect from President Donald Trump’s One Big Beautiful Bill: no tax on tips, no tax on overtime, a tax credit for parents with children in college, and lower taxes for senior citizens.

“Especially the overtime. We’re seeing a lot of people with with overtime and, you know, and it helps,” Grossman said.

The Department of Revenue has received around 3 million tax returns so far—and are expecting 3 million more over the next three weeks.

Democratic Gov. Josh Shapiro is encouraging use of free tax clinics in several recent press conferences.

“A lot of times those folks would pay sometimes $500 to have a private tax preparer prepare their taxes for that,” Grossman said.

He likes numbers; but he says he does taxes for the people.

“It is a real delight to meet with people,” Grossman said. “You always end up with one or two stories that warm your heart.”

There are at least 36 tax credit programs that Pennsylvania businesses, organizations, and individuals can tap into this year.

Pennsylvania spent almost $1.2 billion on those tax credits last fiscal year.