Comments on: Adoption Tax Credit Extended and Improved

By: Joy Graham

Joy Graham — Tue, 12 Jul 2011 17:14:28 +0000

We adopted our daughter from China in April of 2010. Filed our taxes. We have provided ALL documents asked for and have recieved 3 letters from the IRS.

All 3 letters state that they want her form that was filled out for her social security card. We have provided that plus her social security card 3 times now.

We have not recieved a refund and are told that they will review our paperwork in 30 more days. Each letter is the exact same one…We will review your information in 45 days, 30 days, so on.

We keep resending the SAME paperwork. It has been going on since March. I am in a chat room where hundreds of people are getting the same run around. They are getting the same letters that we are and no refunds…

We need the money to adopt our daughter’s sister this Spring! It is so upsetting to recieve letters repeating the same thing and adding to insult the IRS letter say, “Do not contact us on this matter.” -Joy Graham

By: Dawn

Dawn — Wed, 08 Jun 2011 12:14:45 +0000

Karen, I’m not a tax expert, but I believe it depends on the type of adoption. With international adoption, the adoption must be finalized before you are elegible for the adoption tax credit. With domestic, expenses are covered prior to finalization. We covered all this (and more) in this podcast on the Adoption Tax Credit. http://www.creatingafamily.org/radioplayer.html?file_name=federal%20tax%20credit.mp3&year=2010&day=December%201:&title=Adoption%20Tax%20Credit%202010

By: Karen

Karen — Tue, 07 Jun 2011 23:46:54 +0000

Dawn,

Do you know if this credit is available if you have taken placement in 2011, but may not finalize in 2011? We were told that this was in the HCR Bill, but we can’t find anything that specifically addresses placement vs. finalization (or we may not understand what we’re looking at). Thanks for being willing to answer all of these questions!

By: Sheri

Sheri — Wed, 30 Mar 2011 04:26:03 +0000

You will be refunded any credit you have carried forward up to this point. If you adopted a special needs child and had no out-of-pocket expenses, you can go back and amend your returns back to the year you adopted (no earlier than 2005), then carry forward the adoption credit (you get the amount of the credit for the year you adopted) until you file your 2010 return. You will get the credit refunded to you in full if you have no tax liability. This applies to adoptions for years 2005 – present.

By: Dawn

Dawn — Mon, 14 Mar 2011 13:01:40 +0000

Matt: No one knows yet, but there will be a strong push by the adoption community to get the credit extended and we hope to keep it as a refundable credit. Sign up for our weekly newsletter, where we’ll let you know what’s happening and also what you can do to help it get extended. You can sign up on the top left hand side of this page.

By: Matt

Matt — Mon, 14 Mar 2011 05:21:59 +0000

We’re still finishing home study and we’re hopeful but not sure if placement will happen this year. Does anyone know if this the credit will extended past 2011? Can the sunset be lifted or extended?

By: Dawn

Dawn — Fri, 25 Feb 2011 18:07:39 +0000

Laura, we received a question for our Adoption Tax Credit page about how far back you can go to amend. Check out our Adoption Tax Expert’s answer at http://www.creatingafamily.org/adoption-resources/adoption-tax-credit-faq.html

By: Laura

Laura — Thu, 24 Feb 2011 21:18:14 +0000

with a special needs adoption does it matter if the adoption was finalized in 1997,have never filed for a adoption tax credit and is still receiving an adoption subsidy in 2010? Can I amend any tax year at all?

By: Dawn

Dawn — Wed, 23 Feb 2011 01:38:44 +0000

Kathy, I’ll post this over on our Adoption Tax Credit FAQ page once out tax expert answers it. http://www.creatingafamily.org/adoption-resources/adoption-tax-credit-faq.html

By: Kathy

Kathy — Tue, 22 Feb 2011 20:19:40 +0000

Taxpayers who adopt a special needs child can claim the full amount of the adoption credit without regard to the actual expenses paid in the year the adoption becomes final.

Am I to understand that if you adopt a special needs child you adomatically get the full amount as a refund???