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Adoption Tax Credit 2012

Posted by on Jan. 28, 2013 at 8:26 AM
  • 10 Replies

Someone else may have posted this already so sorry for the duplicate if they did! :) this year, the IRS is nNOT requiring you send in your adoption documentation. But, I still suspect a hold up,because we fostered our children for two years and now they have different names but the same socials. We will see! 

by on Jan. 28, 2013 at 8:26 AM
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SarahSuzyQ
by Sarah on Jan. 28, 2013 at 8:40 AM
Where did you see about not requiring documentation? Ugh, I predict a total fiasco as per the last two years... I wonder how many years before they have a system in place that is functional? :-\

My husband has been watching and working on our taxes, and he's under the impression that we'll need to send in our adoption decree and the "special needs" documentation in the adoption agreement with our state. I'd love to send him updated information if you don't mind sharing.
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NannaBanana1983
by Member on Jan. 29, 2013 at 12:06 AM

I found it on the IRS website.

http://www.irs.gov/taxtopics/tc607.html

SarahSuzyQ
by Sarah on Jan. 29, 2013 at 7:45 AM
Thank you! I thought we were watching the website, but I guess we missed this. Really appreciate you sharing.


Quoting NannaBanana1983:

I found it on the IRS website.

http://www.irs.gov/taxtopics/tc607.html


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dbra
by on Jan. 30, 2013 at 7:46 AM

It's very confusing. They are still requiring you to file paper, though so it doesn't make sense. Why not include it anyway. Less delay for them to audit and request it. They did that to us last year on foster status and it took until August to get our return.

heres our kicker - they made it non-refundable. And my husband makes so little that we already have zero tax liability, so it gives us absolutely no benefit. Very frustrating.

im wondering if we can roll it over to future years and if so, how many. Maybe well get a windfall someday, lol!

SarahSuzyQ
by Sarah on Jan. 30, 2013 at 7:56 AM
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My understanding is that you can roll it over for the next five years. I'm sorry you won't receive any benefit from this. We figure it will take us all 5 years to use it up, but we are fortunate to have some benefit.

My husband said last night he thinks he'll just send the paperwork in anyway... I feel like it's darned if you do and darned if you don't. I'm sure no matter what we do or don't send, they'll still review and audit and ask for lots of additional information. :-\


Quoting dbra:

It's very confusing. They are still requiring you to file paper, though so it doesn't make sense. Why not include it anyway. Less delay for them to audit and request it. They did that to us last year on foster status and it took until August to get our return.

heres our kicker - they made it non-refundable. And my husband makes so little that we already have zero tax liability, so it gives us absolutely no benefit. Very frustrating.

im wondering if we can roll it over to future years and if so, how many. Maybe well get a windfall someday, lol!


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Malley
by on Jan. 30, 2013 at 10:45 PM
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No, only send in exactly what they ask for. I only sent in what was required and though it too awhile we got the refund with no problem.

Quoting SarahSuzyQ:

My understanding is that you can roll it over for the next five years. I'm sorry you won't receive any benefit from this. We figure it will take us all 5 years to use it up, but we are fortunate to have some benefit.



My husband said last night he thinks he'll just send the paperwork in anyway... I feel like it's darned if you do and darned if you don't. I'm sure no matter what we do or don't send, they'll still review and audit and ask for lots of additional information. :-\




Quoting dbra:

It's very confusing. They are still requiring you to file paper, though so it doesn't make sense. Why not include it anyway. Less delay for them to audit and request it. They did that to us last year on foster status and it took until August to get our return.

heres our kicker - they made it non-refundable. And my husband makes so little that we already have zero tax liability, so it gives us absolutely no benefit. Very frustrating.

im wondering if we can roll it over to future years and if so, how many. Maybe well get a windfall someday, lol!


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dbra
by on Jan. 31, 2013 at 12:58 PM

Import! I just received this today from NACAC:

The IRS Issues Update on the 2012 Adoption Tax Credit

 

In a recent announcement, the IRS noted the following about filing for the adoption tax credit for 2012:

  • Taxpayers who plan to claim the adoption credit will not be able to file their return until late February or early March. The IRS is still updating their computer systems due to the late legislation. An announcement will be placed on IRS.gov when the Service is able to process the form.
  • The Form 1040 federal tax return and the Form 8839, Qualified Adoption Expenses, must still be mailed to the IRS. The Service was unable to convert the Form 8839 to an electronic format this year.
  • Taxpayers must maintain supporting documentation when filing their return. They are not required to attach these documents to their return this year.

For additional information, visit IRS.gov and type Adoption Credit in the Search box.

 

And, of course, NACAC will keep you posted as we learn more as well.

dbra
by on Jan. 31, 2013 at 1:06 PM

And this link is very helpful. I didn't know I should still file the credit, even though we have zero liability and it will not benefit our return (were one of those lucky low to moderate income families, ugh!).

http://adoptiontaxcredit.org/faqs/

SarahSuzyQ
by Sarah on Jan. 31, 2013 at 1:42 PM
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Yes, definitely still file so you can carry it forward in case anything changes. I guess it's possible to go back and amend your 2012 return later on, but it's much more difficult? That's what we learned last year when our dept held a workshop on the credit.

It's so obnoxious that they are once again unprepared to allow people to file. I know they were uncertain where the credit would go for 2013, but for 2012 it's completely unchanged from what was previously published. I told my husband not to expect our return until fall, so hopefully we can be pleasantly surprised if comes in a reasonable time frame. Very frustrating.


Quoting dbra:

And this link is very helpful. I didn't know I should still file the credit, even though we have zero liability and it will not benefit our return (were one of those lucky low to moderate income families, ugh!).

http://adoptiontaxcredit.org/faqs/


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MommyMookie2
by on Feb. 1, 2013 at 6:40 PM

So what I did year before last, is I filed my taxes e-filed (because we were able to) that way we got our tax return, and because we have no tax liability and the adoption credit didn't do anything for us (well it did because it was the year it was refundable) I then amended that years tax return after when we were allowed to file for it. I had no problems as long as the IRS had already processed our tax return we are in the similar situation this year, I am going to file and then amend because the credit doesn't change anything for us this year.

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