A question about the adoption credit?

M&MBride0506

My hubby gets $4000 reimbursed from his company for adoption expense.  How does that work with the adoption credit?  Do you get both or do you have to chose?  I'll be asking an accountant come tax time, but I was just wondering if you gals knew.  Thanks.

Mel

LadyRed7

As far as i know, they are 2 separate items.

One is a benefit from his job, the other is a federal credit.

Lucky for you! MH's last job gave a $5k credit, but not this one. =( 

Dr.Loretta

I too think they are 2 separate things. But I'll be curious to hear what your accountant says.

DH has $10K reimbursed from his company (yay!), and our accountant didn't mention anything about it counting toward the credit when we mentioned it to her.

maurisa74

I asked my dad, who is a CPA, about this because one of my cousins and my parents are each donating 1/3 to us to help pay for the expenses. He said I can still take the entire credit and that one does not affect the number. If it is coming from work it might be counted as income and taxed, but definitely check with the accountant. 

Dragonfly_Bride

 Here's what the IRS says (from https://www.irs.gov/taxtopics/tc607.html )

Under the dollar limit the amount of your adoption credit or exclusion is limited to the dollar limit for that year for each effort to adopt an eligible child. If you can take both a credit and an exclusion, this dollar amount applies separately to each. For example, if we assume the dollar limit for the year is $10,000 and you paid $9,000 in qualifying adoption expenses for a final adoption, while your employer paid $4,000 of additional qualifying adoption expenses, you may be able to claim a credit of up to $9,000 and also exclude up to $4,000.

noonecarewhoiam

You cannot get a tax credit for money reimbursed to you by your employer. If your adoption is $15000 and your employer reimburses you $5000, you can only get the take credit for $10,000.

Turbo Tax will walk you through it, if you use that.

M&MBride0506

Thank you all ladies!!!!  You ladies are SO helpful...

LadyRed7

Dr.Loretta:

DH has $10K reimbursed from his company (yay!)

 

AWESOME!