The Federal Tax Credits Blog

Posts Tagged ‘federal adoption tax credit 2008’

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