Wednesday, January 15, 2014

Don't forget to claim your Adoption Tax Credit when you file your taxes with the IRS, that is if you qualify...

Why does tax season always fill me with anxiety? It shouldn't, all I have to do is mail everything to my CPA and hope for the best. Something about making sure I have everything in the envelope just twitterpates me... (Yes, in our house twitterpate is a word. Meaning wound up, can't focus, at a loss for words).

I do want to remind all of my friends who have adopted in 2013, to not forget about the Adoptions Tax Credit. Unfortunately this year it is non-refundable, but on the bright side you can carry it for 5 years. Don't ask me how to file it, because like I said earlier I send all of my stuff to my CPA and if like magic a week later I have my Tax Return in my hand a waiting our signatures.

Here is what I do know... For a special needs child you might qualify for the full credit (even if you have no qualifying expenses) which is $12,970... (Don't forget it is not a refund, so that means you may not receive a refund in that amount, it will depend on what your tax liability is). For those who adopt a child without special needs, you will need qualifying expenses. An example of qualifying costs would be Lawyers Fees, and Court Fees.

Here is a link to the IRS website, which may answer more of your questions.
Adoption Benefits

Lets hope for a good, easy tax season!!!

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