The Federal Tax Credits Blog

Archive for the ‘Adoption’ Category

Where Darrell Moore stands on 9 key issues

Darrell Moore is running for Congress as a Republican Party candidate in Missouri’s 7th Congressional district. Moore answered questions about his positions on 9 public policy issues.

Question: Tax question in regards to foster care / adoption?

I keep getting mixed answers so I’m confused. We have custody of a child that is in foster care. We will have had custody for over a year by the end of ‘08. We are in the process of adoption. My question is- can we claim the child for the ‘08 tax period? The adoption is expected to go through in early ‘09. Are there any tax credits for adoption? Thank you in advance.

Answer: A foster child placed by the State or a State authorized placement agency is treated as your natural child for tax purposes. Since the child will have lived in your home for more than 6 months at the end of 2008, you can claim the child under the Qualifying Child rule as long as the CHILD did not provide more than half of their OWN support and meets the age requirements, i.e. under age 19 or under 24 if a full time student.

The stipend you receive from the state is not taxable income to you and is not treated as self-support provided by the child. It has no affect on your tax return at all.

Contrary to what another poster seems to think, the child is NOT the “dependent” of the State. Legal custody has never been a requirement under the Tax Code.

OmniVision Reports Financial Results for Fourth Quarter and Fiscal 2010

SANTA CLARA, Calif., May 27 /PRNewswire-FirstCall/ — OmniVision Technologies, Inc.

Senate Session 2010-04-19 (15:56:28-16:47:53)

Statement of Michael F. Mundaca Assistant Secretary (Tax Policy) Department of the Treasury Before Committee on Ways …

Good morning Chairman Levin, Ranking Member Camp, and members of the Committee. Thank you for inviting me to testify before your Committee today. I appreciate the opportunity to discuss the energy proposals in the President’s FY 2011 Budget.

House Session 2010-04-15 (10:00:54-11:07:11)

Question: Adoption Tax Credit and distribution from 401k?

O.k. my husband and I adopted/finalzed in 2008. In April we took $15K from 401k thinking that we would adopt and finalize the same year. The penalities and taxes we thought the $11650 from the Adoption Tax Credit would be used to offset that.

This is what I have been told.

Is this correct?

Will we end up owing?

Answer: Since the tax on the 401k should be about 5,000 the adoption credit of 11,650 should offset it very well. You will not owe. But the adoption credit is not refundable. Actual refund depends upon everything else. See calculator below.

http://www.hrblock.com/taxes/tax_calculators/index.html?calcIndx=1#top

Why more Americans pay no income tax

If “taxes are the price we pay for civilized society,” to quote Justice Oliver Wendell Holmes Jr., then April 15 is the day that bill comes due for every working American.

Davos Annual Meeting 2010 – CNBC The Next Global Crisis

Question: How does the 10,000 special needs adoption tax credit work?

I’ve read I get to claim the whole 10K without documentation. Is that true? Does anyone have experience with this? Any info would be appreciated.
You didnt even come close to answering my question. I’m talking about not having reciepts for adoption expensense related to taxes and if you are referring to me only adopting for the money you are sadly mistaken. I’ve worked with emotionally disturbed kids for seven years. It is what I am good at so I want my own. Yours is a common reaction though. Most people cant believe a person would adopt these kids out of love. What a sad selfish world we live in. Hey its the American way!!! Whatever is best for the individual… screw the rest. I’m American by the way…

Answer: I understood that the $10K adoption credit was for ANY adoption, not specifically “special needs”.

That being said, we adopted a “special needs” child in 2004. We actually brought him home in 2003, but could not claim the adoption credit until the adoption was finalized in 2004. The only adoption information that we needed was an adoption tax ID number since he did not have a social security number.

I wish I could be of more assistance, but I believe you could research more about the tax credit on the internet.

Good luck!

Host Hotels & Resorts, Inc. Reports Results of Operations for the…

HST , the nation’s largest lodging real estate investment trust (REIT), today announced its results of operations for the fourth quarter and for the full year ended

Written comments on a tax credit for certain nonrecurring expenses relating to adoption of a child with special needs …