Kenise's Tax & Business Services, LLC

News You Can Use
IRS TIPS

Child and Dependent Care tax credit can help offset summer day camp expenses

WASHINGTON – The Internal Revenue Service today reminded taxpayers that summer day camp expenses may count towards the Child and Dependent Care tax credit.

Many working parents arrange for care of their younger children under age 13 during the summer. A popular solution is a day camp program, which can sometimes also lead to a tax benefit. Taxpayers who pay for the care of a child, or other qualifying person, so they could work or look for work may be able to take the credit for child and dependent care expenses.

Unlike overnight camps, the cost of day camp may count as an expense towards the Child and Dependent Care credit.

How it works

Taxpayers must have earned income to claim this credit. The credit is calculated based on income and a percentage of expenses incurred for the care of qualifying people to enable taxpayers to work, look for work or attend school.

Depending on income, taxpayers can get a credit worth up to 35% of their qualifying childcare expenses. At minimum, it’s 20% of those expenses. For 2024, the maximum eligible expense for this credit is $3,000 for one qualifying person and $6,000 for two or more.
Reimbursed expenses, such as from a state social services agency, must first be deducted as work-related expenses used to calculate the amount of the credit.
The amount of work-related expenses used to figure the credit generally cannot be more than earned income for the year if single, or the smaller of a spouse’s income, if married.
Taxpayers who claim it must list the name and address of the day camp on their return, along with the taxpayer identification number unless an exception applies.

Happy Father’s Day!💪🏾

FYI: Hot off the Press
IRS Announces the Official Start of the 2024 Filing Season

WASHINGTON — The Internal Revenue Service has announced Monday, Jan. 29, 2024, as the official start date of the nation's 2024 tax season when the agency will begin accepting and processing 2023 tax returns.

Many different factors can affect the timing of a refund after the IRS receives a return. Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer. The easiest way to check a refund's status is by using Where's My Refund? on IRS.gov or the IRS2Go app.

Under the federal Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds before mid-February. Where's My Refund? should show an updated status by February 17 for most early EITC/ACTC filers.

The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by February 27 if they chose direct deposit and there are no other issues with their tax return.

FYI: Got off the press...
Happy Tax Time!!!
1/16/24 - Customer Information links emailed
1/18/24 - KTBS start filing Tax Returns
1/26/24 - Earned Income Tax Credit Awareness Day
1/29/24 - Tax Official Start Day/IRS processing Tax Returns
3/15/24 - Deadline for filing a calendar-year S corporation or Partnership return or extension
4/15/24 - Deadline for filing a 2023 personal return or extension
4/15/24 - Deadline for filing a 2023 calendar-year C corporation or calendar-year estates/trusts tax return or extension
7/17/2024 - Deadline for filing a 2023 personal return for U.S. citizens or residents living and working abroad, including military duty
9/23/24 - KTBS close for current year filing
10/15/24 - Final deadline to file your 2023 personal tax return if you filed an extension

If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you can expect to get your refund by February 27 if: You efile your return and you choose to get your refund by direct deposit and the IRS found no issues with your return.
Estimated 2024 IRS Income Tax Return Chart attached

Happy Thanksgiving… Be thankful grateful and blessed…

Happy Memorial Day

WASHINGTON − The Internal Revenue Service announced today that the nation's tax season will start on Monday, Jan. 23, 2023, when the tax agency will begin accepting and processing 2022 tax year returns.

The January 23 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly.

While the IRS will begin accepting returns Jan. 23, the IRS cannot issue a refund that includes the Earned Income Tax Credit or Additional Child Tax Credit (ACTC) before mid-February. This is due to the 2015 PATH Act law passed by Congress, which provides this additional time to help the IRS stop fraudulent refunds from being issued.

May your 2022 come joyfully and prosperously to an end, and may we start a wonderful, successful new year.

Happy New Year!

Thank you for being an outstanding client!

FYI for South Carolina Residence
The state of South Carolina has started funding a first round of Income Tax Rebates to SC taxpayers who filed a 2021 SC income tax return prior to October 17, 2022. The rebate checks are calculated based on the taxpayer's 2021 SC return tax liability with a max amount of $800 and will be disbursed in the same way that the original SC return was filed. If a bank product was used for the original SC refund method, the rebates will be issued as such.

EPS and Refund Advantage - EROs can print and mail checks to their clients for any federal or state fundings received through November 30th. Beginning December 1st, the bank will print any remaining unprinted checks, as well as checks for any subsequent fundings. Note - Bank product disbursements are subject to a funding fee, to be collected by the bank.

Santa Barbara TPG - EROs will not receive these fundings and will not need to print the checks. Santa Barbara TPG will print the checks and mail them directly to the taxpayer. Note - Bank product disbursements are subject to a funding fee, to be collected by the bank.

News You Can Use:

Gov. Kemp: Georgia Department of Revenue to Begin Issuing Special, One-Time Tax Refunds Atlanta, GA – Governor Brian P. Kemp and the Department of Revenue (DOR) announced today that DOR will begin issuing special, one-time tax refunds this week. This initiative is a result of House Bill 1302, which the Georgia General Assembly recently passed, and Governor Kemp signed into law. This ...

FYI

Important Dates:

STARTING January 18 Customer Information Email Packets will go out from our office

January 24th - Start of e-File
Second half of February: PATH Act payments (EIC) - dates to be announced!
April 18th - deadline for 2021 tax returns