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2 Bumps

Question regarding Adoption

Okay so I have an odd question. I recently gave a child up for adoption, and as part of the agreement the family paid my living expenses during my pregnancy and for the month after. I received a W-2 today for the money that was given for my living expenses after the adoption for that month. Has anyone else had experience with adoption or know what this is about?

Answer Question

Asked by Anonymous at 3:53 PM on Nov. 21, 2010 in Adoption

Answers (16)
  • im not quite sure so i gave you a bump, best of luck

    Answer by meagan678 at 3:54 PM on Nov. 21, 2010

  • Makes sense to me. It was income, that they paid to you. Therefore, it's taxable income.

    Answer by justnancyb at 3:55 PM on Nov. 21, 2010

  • call you tax person but it is considered income

    Answer by laura970 at 3:56 PM on Nov. 21, 2010

  • Well, if I'm understanding you correctly that means the money you got for the month after the adoption is earned income to you. They didn't include the money they gave you during the preganancy, just the money for the month afterwards.

    Answer by elizabr at 3:57 PM on Nov. 21, 2010

  • yes it is considered income and you have to file it during tax season just like as if you were employed. And if you dont file you could have even more of a fine.

    Answer by Luckybear05 at 4:01 PM on Nov. 21, 2010

  • When I was pregant with the son I gave up his parents paid my rent and living expenses while I was on maternity leave. I never paid tax on that. Unless you were a surragate, adoption gifts are just that and certainly not income. Baby selling is illegal which is why all expences paid by prospective adoptive parents are gifts and are non refundable if the mother decides not to place the baby once it's born. Call the legal department of the agency that handled your adoption.

    Answer by onethentwins at 7:53 PM on Nov. 21, 2010

  • I know that any money coming to you is declarable, even if it is a gift. I do think there is a limit, greater than some amount, but not sure what that is.

    Answer by TwoBrownDogs at 11:04 PM on Nov. 21, 2010

  • Gifts are amounts under $11,000. But with a W-2 that is income and they are reporting it to the IRS by filling out a W-2

    Answer by elizabr at 7:22 AM on Nov. 22, 2010

  • This is just a guess but here it goes....if you were working (and you may have had a job) or several jobs....then you get taxed for the money. The idea is that this money is paying for your expenses that you would have been working for. But I have never heard of this. I would talk to the adoption lawyer or a person who can help you with your taxes.

    Answer by frogdawg at 8:31 AM on Nov. 22, 2010

  • Very odd...I, too, would contact the legal dept.

    Thinking of tax time, I do know that for the Earned Income Credit, that you have to have some income in order to benefit from it. Depending on the amount you made during the year, it "could" be an advantage come tax time. But you need to check with a tax consultant about that part of it. But definitely call the legal dept.

    Please let us know the reasoning when you find out, would you? Or if it was in error? I've never heard of this before.

    Answer by doodlebopfan at 11:23 AM on Nov. 22, 2010

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