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Thursday, April 17, 2008

Links To Adoption Tax Credit Explanations

I did most of my research through the IRS website, but for folks who don't want to spend weeks like I did, I found the following summary to be the most accurate and helpful:

http://taxes.about.com/od/deductionscredits/qt/adoptioncredit.htm

It provides hyperlinks to the actual forms you'll need to fill out (or, as in our case, your tax preparer). I highly recommend using a tax professional when you go to use this credit.

I'll add more as I get a chance as I know others are very interested as they plan on adopting in the near future.

I just learned that you can use the tax credit even if you had expenses on an attempted by failed adoption, too. This is great news for many who run into nonrefundable deposits with agencies only to have birth mothers/parents change their minds.

For those of you who have not adopted, don't forget that you can claim a foster child who is in your care for at least 6 months out of that year. We claimed Cookie in the year before she was adopted and it gave us a nice tax break that year as well. We couldn't claim Bit-Bit because she was born on July 31st.

Hope this helps - anyone have other sites? As I find good ones, I'll create a side-bar with the links.

3 comments:

Anonymous said...

As long as she was placed with you at birth you can claim your foster child even if they were not in your care 6 months. We did this with our foster son who was born in November and were audited. It was determined correct.

Melodie said...

I just found out today that the IRS increased the tax credit for adoptive families in 2008. That's great news for all families pursuing adoption. Thanks.

baggage said...

Can you email me? I need to ask you a question...thanks!

baggageandbug@yahoo.com