Wednesday, March 30, 2011

Have you started your taxes? CPA David Smith gives pointers on the Federal Adoption Tax Credit; share yours, too!

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Have you completed your taxes? Are you unsure what the Federal Adoption Credit means for you or how to file for it? What will your credit look like? What is a credit? What if you completed your adoption in 2009; does the new Adoption Tax Credit affect you?

These are all great questions and adoptive dad and CPA David Smith answers them for you this week, via CHI-TV. (Well, he can't answer "Have you completed your taxes?", but we're guessing that he has completed his.) If you have a question that you would like to ask David, let us know in the comments and we'll get an answer for you.

Some families and Children's Hope staff (who are also adoptive parents) have been asked to submit further information to the IRS to obtain their credit. Has this happened to you?
Every week, our Children’s Hope adoption experts will answer questions important to you and your adoption via CHI-TV. They will also tackle the most talked about international adoption topics of the day. Be sure to watch and participate via the comments or Facebook! (Are you reading this via RSS? Jump to the blog to leave a comment and join the conversation.)
 

8 comments:

Anonymous said...

If I am only now beginning the adoption process, and may not complete the process for 2 years or so, can I count on getting the adoption tax credit? Or might I find 2 years from now that the credit no longer exists? I would absolutely need to receive this credit for adoption to be affordable to me, and can't consider going through this if I may end up not being able to take this tax credit.

Troy and Rachel said...
This comment has been removed by the author.
Troy and Rachel said...

Whoops - sorry about that! We had no trouble with our taxes this year and they did not ask for any further information!!

Children's Hope International said...

Thank you, Anonymous, for your question regarding the future of the Federal Adoption Tax Credit. We forwarded your question to David and he had this insight to share with you.

From David Smith, CPA:
Unfortunately, as of right now the credit is set to expire at the end of 2011. While it is certainly possible that this credit can be extended, we are unable to count on that happening until it is actually signed into law.

If your adoption hinges on the availability of the Federal Tax credit, I would strongly recommend you look into other and additional funding sources. Here are a few places the resourceful adopting family can look: 1) Check if your employer offers an adoption assistance or reimbursement benefit, if not, ask, 2) Check if you state offers an adoption tax credit, 3) Check with your local church to see if they would be open to providing assistance, and 4) Spread the word to family and friends. This is certainly not an exhaustive list but will hopefully give you a start.

Children's Hope International said...

@ Troy & Rachel - Thanks for your feedback!

Children's Hope International said...

@ Anonymous: To add to what David shares:

Don't forget to call your adoption consultant. You are not alone! Also, please see our Financing Your Adoption page for additional resources to consider in making your adoption financially possible: http://adopt.childrenshope.net/helpful_information/finances/index.php.

Milena said...

Hello,

We finalized the adoption of our daughter from China in 2008. Do we qualify for the federal adoption tax credit and what documents do we need to file with the IRS, if we qualify?

Milena Mishev (New York, NY)
Adcoptive Mother

Children's Hope International said...

Hi Milena -

Thank you for visiting and commenting! We spoke with David Smith, CPA, and he gave this answer to your question:

"You should amend your 2008 tax return to claim the tax credit. If there is any unused credit, you would then need to amend your 2009 (and 2010) tax returns as appropriate. Use IRS form 8839 to report the expenses when preparing the amended returns."

Milena - We strongly recommend you consult a local tax professional to help you in your tax preparations. Thank you!

Jennifer Newcomb - Children's Hope Communications