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Wolters Kluwer Tax & Accounting Highlights the Availability of the
Child and Dependent Care Credit for Summer Activities for the Kids

Wolters Kluwer Tax & Accounting:

What: Taxpayers with dependents should be relieved to know that
The Tax Cuts and Jobs Act (TCJA) preserved the Child and Dependent Care
Credit. The credit is available for the care of dependents under the age
13 or with a disability of between 20 and 35 percent of the expense,
applied to a maximum of $3,000 of qualifying expenses for one dependent
or $6,000 of qualifying expenses for two or more dependents. However, to
qualify, there are several requirements to consider. For example, the
expense must be related to permitting the parents to work or look for
work. While a day camp for the kids may be considered work-related, an
overnight camp is not considered work-related.

Why: To take maximum tax advantage, taxpayers should understand
how the Child and Dependent Care Credit applies to various care options
available during the summer. It's important to determine the following:

  • Who is a qualifying person?
  • What is the earned income test?
  • When is the expense work-related?
  • What are the qualifying expenses?
  • What information is required concerning the care provider?
  • How is the credit calculated?
  • How is the credit affected by any dependent care benefits received
    through your employer?

Who: Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal
Tax Analyst at Wolters Kluwer Tax & Accounting, is available to discuss
the requirements to qualify for the Child and Dependent Care Credit.

Contact: To arrange interviews with Mark Luscombe or other
federal and state tax experts from Wolters Kluwer Tax & Accounting on
this or any other tax-related topics, please contact:

  NICOLE YOUNG         BRENDA AU
347-931-1055 847-267-2046

N.Young@wolterskluwer.com

Brenda.Au@wolterskluwer.com

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