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Adoption
butterflygrooves
member
Tax Questions
butterflygrooves
member
in Adoption
We are dropping our tax stuff off this week and aren't sure what we need to take in from Iz's adoption. We haven't gotten her new birth certificate yet (it takes about 10 months) and we don't have receipts towards the adoption (foster care so it was free to us).
Also, how does the adoption tax credit work when adopting from foster care? I thought we wouldn't be able to get it because we don't have receipts for adoption expenses but our agency informed us that any child receiving AAP (which Iz does) is considered "special needs" and qualifies for the credit.
This discussion has been closed.
Re: Tax Questions
You'll need to for sure bring a copy of the Adoption Order or Decree. After that, I'm not sure, but yes, your accountant is correct. I'm going to see if I can find an easy to interpret linky...
https://www.dphhs.mt.gov/cfsd/adoption/federaladoptiontaxcredit.pdf
https://www.nacac.org/taxcredit/taxcredit.html
Try these... hopefully they will shed a little light. The second one has a couple webinars coming up.
TTC since May 2006. After 3 failed Clomid cycles, 2 failed Injectibles/IUIs, 2 failed IVFs and 1 failed FET, we moved on to adoption!
Last ditch FET resulted in BFP, and identical twin girls!
They should tell you. I don't think we had DD's BC either. We took her adoption decree, and we had an itemized list of expenses. Though I don't know if that was required.
You will definitey get the credit because she's considered SN. When we had our taxes done last year, the woman said she had a foster mom come in who wanted enough $ to get her van fixed. She'd finalized for 3 kids, all with pretty significant SNs. When the tax lady told her what she'd get back, the woman burst into tears.
I remember almost everyone on here waited months last year! My DW and I file seperately so I am claiming my bio daughter and DW is claiming Iz, our accountant said she can file DW's taxes like normal and ammend the adoption stuff so she can get her regular taxes without having to wait for the adoption credit that will come later.
Two Mommies Healing Hearts
We were told by 2 tax professionals to only give them what they ask for up front (adoption decree for finalized) and if they want more they'll ask.
Also, the IRS website itself says they'll process the rest of your return and submit that to you regardless of the length of time it takes to get your adoption credit back.
I'm really hoping this is true! I plan on mailing ours out tomorrow and I would love to get back the rest of our return back quickly.
Don't let it completely scare you. We filed for 2 adoptions last year, weren't audited and had our return back 2 weeks prior to the estimated date we were expecting.
Also to the OP - I believe any child adopted through foster care is able to receive the tax credit. They are automatically qualified as Special Needs, whether they truly are or not.