JK Harris Encourages Parents to Take Advantage of 'Day Camp' Credit

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JK Harris and Company representative urges taxpayers to earn Child and Dependent Care Credit by sending children to summer day camp.

It's summer, you work full-time, and you don't have a babysitter for your children. Don't worry. Send your children to day camp and receive credit on your taxes.

"Send them to camp while you work or look for employment and you may be eligible to take a credit on your tax return," said Ralph Havens, Director of Professional Services for JK Harris and Company, the nation's largest tax resolution firm. "It is not a refundable credit, but it can reduce part of your tax liability."

The credit is known as the Child and Dependent Care Credit. It is available to people who, in order to work or look for work, have to pay someone to care for a child under age 13 or a qualifying spouse or dependent.

If an employer does not reimburse employees for childcare while the employees are at work, a deduction for up to $3,000 for one child and $6,000 for two or more children can be taken.
"By using Form 2441, you can figure your credit, which could range from 20 to 35 percent, depending on your income," Havens said.

The 35 percent rate will apply if the taxpayer's income is under $15,000 per year, while the 20 percent rate will apply if the income is more than $43,000.

Some points to remember when claiming the Child and Dependent Care Credit for day camp are:

  • The child must be under age 13 and the parent(s) must be working during the period the child is at camp.
  • You must have earned income from wages, salaries, tips or other taxable employee compensation, or net earnings from self-employment.
  • The payments for care cannot be paid to someone you can claim as your dependent on your return or to your child who is under age 19, even if that child is not your dependent.
  • Your filing status must be single, married filing jointly, head of household, or qualifying widow(er) with a dependent child. If married filing jointly, both parents must be working.

"Don't look for too much of a break from the kids, though," Havens said." Overnight camp is not included."

About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 450 locations nationwide by appointment only. The company also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, tax return preparation, and audit representation.

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