Since most of you probably don't receive the Journal of Accountancy (JOA), I thought I'd post an article regarding the adoption tax credit from my daily JOA email. The extension of the adoption tax credit was part of the ObamaCare bill based earlier this year:
Re: Update: Adoption Tax Credit 2010 and 2011
For domestic adoptions not yet final, taxpayers may claim credit amounts in the tax year following that in which qualified adoption expenses were incurred. For such credit claims, taxpayers must attach any of six documents or other substantiating information specified in the notice.
I am horrible at tax stuff. Does the above part mean that we can claim fees etc. that we already paid even if the adoption is not yet final? Meaning even if we don't have a placement yet or do you take that to mean after placement but before finalization? If everything goes thru our placement will be in December and I'm wondering if we could claim what paid so far...
I take it to mean that if it's not final in the year (one) that you've incurred the expenses, that you can claim them in year two.
5 REs + 3 surgical hysteroscopies for septum/lap + 3 failed IUIs
IVF w/ICSI/AH & acu = BFP!, unexplained spontaneous m/c @ 8w2d (our little girl),
FET w/acu = BFP!, B/G twins!, lost MP @19w, dx w/funneling cervix @20w,
twins nearly lost to IC @21w, saved by rescue cerclage, 17P & 16w of bedrest
Our twins born @36w4d via CS when A came foot first
Thankful for every day
Thanks Amber! Great information to pass on to the hubs.
And I have to ask, Who made that awesome stocing cap for your daughter! I love it and smile every time I see that picture of her wearing it!
I bought the hat on etsy. I don't know anyone that could make that by hand
As far as the credit carryforwards from previous years for Fredalina, according to the article, it looks like any credits from prior years can now be claimed fully in 2010 as a refundable credit. Subject to income phaseout requirements. As long as the adoption was either a) finalized 2010 or prior, or b) The adoption expenses were paid in years 2009 or prior.