The Federal Tax Credits Blog

Posts Tagged ‘Adoption’

Question: Should the adoption tax credit be used for foster children only?

In 1996, as the presidential election approached, President Clinton signed a bill that gave money to people who adopted infants and foster children. This was controversial and considered highly political; most of the money went to subsidizing the already profitable adoption industry. Very little went to helping the children who needed it, i.e. those in foster care.

Seeing how the system has developed, should we change the law and direct the money to those adopting from foster care?

Answer: i think the money put aside for this credit needs to go toward reforming the system all together. yes it costs large amounts to adopt through and agency and privately. but if you look before 1996 the charges incured by adoptive parents through private and agencies were about 10k less than they were post 1996. so honestly the credit is helping no one but the agencies. it’s not helping kids in the foster care system and it’s not helping curb the expenses that adoptive couples spend during an adoption. basically you hand the agency 10k in a lump sum, and the governement hands you 10k back, but over time. none of it makes any sense. i would rather see agencies be regulated on fees and expenses and lower those fees charged by 10k, and the gov. spend 10k per child adopted on adoption reform and reforming the foster care system. since you usually don’t get the credit for adopting a child through the foster care system, because you don’t spend 10k to adopt them. the only thing this credit is being used for is a profit to the agencies, and it’s hurting the children and the system that needs it the most.

Financial heavyweights square off on income tax measure

Two long-standing pillars of Puget Sound-area civic life faced off Thursday night over a ballot initiative that would add an income tax on Washington state’s richest people in exchange for cuts to property and business taxes and increased education and health care spending.

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

Tax treatment of adoption expenses: a sizable tax credit is available, but with possible changes on the horizon.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA’s on April 1, 2010. The length of the article is 3386 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax treatment of adoption…

Adoption expenses credit: foreign-born child.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on October 1, 2006. The length of the article is 974 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Adoption exp…

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

The Adoption Tax Credit and the Affordable Care Act (10/05/2010 Webchat)

Question: Am I legally allowed any financial compensation from?

a potential family privately wanting to adopt my baby? I heard through the grapevine that I could have food costs as well as maternity clothing costs, not to mention utilities and rent paid for me while I am pregnant. Does anybody know if it is true,because there is an adoption tax credit limit of 10,000$ for families who adopt or so I heard.

Answer: Poor baby.
A natural mom who’s looking to sell him to the kind of adoptive family who will buy a child at any cost.

Around the region

VALPARAISO Law clinic offers free services: The Valparaiso University Law Clinic offers free legal services to community members who otherwise would be unable to access the legal system. Services are available by appointment Mondays through Fridays. Eligibility is based on income, case time and clinic availability. The clinic assists with tenants’ rights, wills, divorce, domestic violence, child …

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

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

Tax treatment of adoption expenses: a sizable tax credit is available, but with possible changes on the horizon.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA’s on April 1, 2010. The length of the article is 3386 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax treatment of adoption…

Adoption expenses credit: foreign-born child.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on October 1, 2006. The length of the article is 974 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Adoption exp…

interested in adoption?

Question: International Adoption tax question.?

We adopted our daughter from China. We started the process in 2005, our home study Anniversary date was 12/05/2005 Because of the very long match waits we did not travel till Feb of this year, 2008. The adoption as far as China is concerned was finalized in China, Our Daughter became a US citizen when we touched down back in the states. Both my husband and I traveled to China so the adoption would be complete there. Our State, VA requires a 1 year followup for the ‘re-adoption’ to receive a VA Birth Certificate. Our Agency as well requires a 1 year update this will be at the end of Feb. 2009.

Does anyone know about the Federal Government Tax credit for adoption? It is my understanding that it is around $10500 or so. Can we claim this credit this year on our 2008 taxes or will we be forced to wait one more year to claim this on our 2009.

Answer: In Va you have to have a readoption complete first. (For Va, a readoption is what “finalizes” the adoption.) So, the soonest you can complete the readoption, is the soonest year in which you can file and get the tax credit.

Email me privately if you want to know how I did mine.

PS: My son’s new birth certificate does not change his place of birth.

Northern journal

A Miramichi woman who is suing for damages for allegedly not being able to return to her job as an administrative clerk has been ordered by a Court of Queen’s Bench judge to reveal how much time she spends on a social networking site.

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Question: How does the federal adoption tax credit work with international adoption?

I know that we would need to spend the 11,000 or so in adoption expenses in order to get that matched in credit, but how does the tax credit actually work? If we fill out our taxes and we are getting a refund of say $500, do we get the credit on top of that or do we have to owe money in order to receive any of the credit?

Answer: For international adoption, you can only take the adoption credit if the adoption was finalized in 2006.

The adoption credit is a non-refundable credit. This means the credit can reduce your tax liability down to $0. But if a tax payer don’t owe any taxes, the adoption credit will not give the tax payer more money back. So if you are getting $500 refund because you overpay taxes, then you will get more money with adoption credit. If you are getting $500 because you are claiming Earned Income Credit, then adoption credit may not add to the amount of your refund.

See instruction for form 8839 http://www.irs.gov/instructions/i8839/ch01.html#d0e22

Best wishes.

2009: A year in review

Concerns about the H1N1 virus, accidents, tragedies, the weather, changes in three county sheriffs, a cold case arrest, controversies, passage of a Shawnee school bond and stories of compassion for dogs were among the topics making local news headlines in 2009.

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Solar Water Heating Pilot Program (SWHPP)

Question: Can you claim the adoption tax credit if you adopt your girlfriends child?

I understand you can’t claim it if you adopt a spouses child; but can you claim it if you adopt a girlfriend’s child? My daughter is 3 her biological father has agreed to sign his rights over to my boyfriend of 2 years, we are having a child together and want both children to have the same father “legally”. we are also able to pay court expenses out of pocket… We plan to get married one day, but that wont be for several years… does anyone know about this or know of a good website?

Answer: Since you are not adopting your spouse’s child you are eligible for the credit bases upon that criteria. See the instructions for Form 8839 for further information: http://www.irs.gov/pub/irs-pdf/i8839.pdf

UK Economy GDP Growth Forecast 2010 and 2011, The Stealth Election Boom

By Nadeem Walayat . The British Economy as with other developed economies entered 2009 in recession and on the brink of Depression, after unlimited bailouts , hitting the Quantitative Easing panic button and running a huge 15% of GDP budget deficit, the UK economy has managed to claw its way back out of recession as the Q4 data will show when released during late January 2010. Read more » »

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

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

Tax treatment of adoption expenses: a sizable tax credit is available, but with possible changes on the horizon.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA’s on April 1, 2010. The length of the article is 3386 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax treatment of adoption…

Adoption expenses credit: foreign-born child.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on October 1, 2006. The length of the article is 974 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Adoption exp…