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An Adoption question

Posted by on Jun. 4, 2011 at 1:57 PM
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 I was reading that a couple was waiting their tax refund of over $65,000, they said it was owed to them because they adopted 5 sibling and their is an adoption tax credit that was included with their regualr refund. I read on and it said that a person adopting will get back about $15,000 per child adopted.

Is this true? I have never heard of this before.

Make your dreams come true just by following them!!  ~~ I do have fibromyalgia and RA But it will NEVER have me!" ~~ Come have some fun with the ladies in 40ish and beyond, www.cafemom.com/group/7446 ( tell the girls momma sent ya!!) }!{

by on Jun. 4, 2011 at 1:57 PM
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Replies (1-6):
smokeybear
by on Jun. 4, 2011 at 2:01 PM

 I have no idea - if so, I wonder why???

dana63
by Momma of 40ish on Jun. 4, 2011 at 2:11 PM

 

Quoting smokeybear:

 I have no idea - if so, I wonder why???

 They said it was because the cost is expensive and they are trying to help out.

Make your dreams come true just by following them!!  ~~ I do have fibromyalgia and RA But it will NEVER have me!" ~~ Come have some fun with the ladies in 40ish and beyond, www.cafemom.com/group/7446 ( tell the girls momma sent ya!!) }!{

tomatoqueen
by on Jun. 4, 2011 at 2:28 PM

Yes, there is a HUGE tax credit for adoption. The cost of adopting is so high that the govt decided this was a way to help couples and kids waiting to be adopted.

bergencounty
by Silver Sister - lp on Jun. 4, 2011 at 2:31 PM

 For each adopted children, you are eligible for a one-time tax credit of up to $13,170.

The amount of your adoption credit or exclusion is limited to the dollar limit for that year for each effort to adopt an eligible child. If you can take a credit and exclusion, this dollar amount applies separately to each. For example, if we assume the dollar limit for the year is $13,170 and you paid $10,000 in qualifying adoption expenses for a final adoption, while your employer paid $4,000 of additional qualifying adoption expenses, you may be able to claim a credit of up to $10,000 and also exclude up to $4,000.

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

The credit has been around since 1997, but this tax season it is refundable for the first time -- which is the tax equivalent of hitting the jackpot.

A refundable tax credit lets you get the cash even if you owe no taxes. A non-refundable credit just offsets any taxes you owe, and then rolls anything remaining to the next tax year.

Here is an example: http://www.ktla.com/news/landing/ktla-family-gets-huge-tax-rebate,0,6359767.story

dana63
by Momma of 40ish on Jun. 4, 2011 at 2:31 PM

 

Quoting tomatoqueen:

Yes, there is a HUGE tax credit for adoption. The cost of adopting is so high that the govt decided this was a way to help couples and kids waiting to be adopted.

 Really? I was never told this even in court when I got custody of Tinker and was told that my next step would be adoption. All I was told that it was a process that could take a year or longer depending on the case.

Make your dreams come true just by following them!!  ~~ I do have fibromyalgia and RA But it will NEVER have me!" ~~ Come have some fun with the ladies in 40ish and beyond, www.cafemom.com/group/7446 ( tell the girls momma sent ya!!) }!{

BaBeezandMe
by CakeChic on Jun. 4, 2011 at 5:35 PM

 Sorry I have no idea

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