JK Harris' Rivera Speaks Out On Child and Dependent Care Credit

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JK Harris and Company Enrolled Agent reminds taxpayers they may be eligible for Child and Dependent Care Tax Credit.

On Wednesday Mary Rivera, Enrolled Agent and Licensed Taxpayer Representative at JK Harris and Company, LLC, the nation's largest tax resolution firm, reminded taxpayers they may qualify to claim child care expenses or care for a qualifying spouse or dependent when filing their income tax return.

"The credit is available to many taxpayers and if allowed will reduce the amount of tax owed on their federal return," said Rivera, an Enrolled Agent who has been with JK Harris since 2004. Enrolled agents are individuals who have demonstrated technical competence in the field of taxation in order to represent taxpayers before all administrative levels of the Internal Revenue Service. EAs are the only professionals who receive their license to practice from the federal government.

Rivera added that if someone paid for a care provider over 19 years of age to care for their child(ren) under the age of 13, a child older than 13 that requires care for a medical condition, or a qualifying spouse or dependent, they may be able to claim credit on their tax return. This credit may apply if the care was given so that the taxpayer could work or so that they could look for work.

The Internal Revenue Service says you may use up to $3,000 of the expenses paid in a year for one qualifying individual, or $6,000 for two or more qualifying individuals. The dollar amount is reduced by the amount of dependent care benefits provided by the your employer and is excluded from income.

The IRS has set certain conditions you must meet to qualify for the credit:

  • Income - you must have earned income from wages, salaries, tips, other taxable employee compensation, or net earnings from self-employment
  • Payee - the payments for care cannot be paid to someone claimed as your dependent on your tax return or to your child who is under age 19, even if he or she is not your dependent
  • Filing Status - your filing status must be single, married filing jointly, head of household, or widow(er) with a dependent child
  • Care - the care must have been provided for one or more persons
  • Home - the qualifying person must have lived with you for more than half of 2007

"It's important to note that there are limitations to the amount of credit you can claim on your tax return," says Rivera. "If you are claiming the credit, you will need to list the name and Social Security number or EIN of the care provider."

More information on the Child and Dependent Care Credit can be found on the IRS' website at: http://www.irs.gov/newsroom/article/0,,id=106189,00.html.

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 425 locations nationwide by appointment only. The company also provides services for student loan debt, fee-based financial planning, tax return preparation, and audit representation.


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