Update on the Adoption Tax Credit
We have heard from a number of families that the IRS has requested documentation of their adoption or their children’s special needs, even though these families sent in the required documentation with their return. It appears that, at least in some cases, the IRS is not forwarding the documentation on to the department that is reviewing the adoption tax credit. We have also heard that many people are getting their regular tax refund while the IRS is reviewing the adoption tax credit and requesting documentation.
If you receive a letter asking for documentation, we recommend simply sending another copy of the adoption decree (making sure the official seal is visible) and the adoption assistance agreement, if applicable. We also suggest that you write your taxpayer identification number on each page of the documentation to help keep things together.
We are also trying to figure out how widespread this problem is. If you have filed for the adoption tax credit, can you e-mail us at taxcredit@nacac.org to let us know if you: (1) have received your full refund, including the adoption tax credit, or (2) have been asked for additional information from the IRS?
New Federal Adoption Tax Credit Benefits Adoptions From Foster Care!
Have you heard about the new adoption tax credit? You can read a great article about it, explaining everything at http://www.nacac.org/postadopt/taxcredit.html.
Families who adopt a child with special needs from foster care can claim a federal adoption tax credit without needing to incur or document expenses. The per-child tax credit is $11,650 for adoptions finalized in 2008, and $12,150 for those finalized in 2009, $13,170 for those in 2010, and families have six years to use the entire credit.
If your child receives an adoption subsidy, then according to the IRS, you qualify for this credit, as long as your income in 2008 did not exceed $214,730 or $222,180 in 2009. To read more about what defines an adoption subsidy, click here. Adoption subsidies are not taxable. You can read more about that here.
To determine how much you qualify for, look at line 46 of your 1040 to determine your tax liability. If for instance, you adopted a child in 2008, and your tax liability was $7,000, then you would receive that amount refunded to you. Since your tax credit amount per-child is $11,650, then the amount leftover after deducting $7,000 would be rolled over to the next year and credited to you. You can continue rolling over any leftover amounts for up to six years. Please see the printable article from NACAC below. You can download it or print it out and take it with you if you decide to amend your previous year's taxes.
For additional information, please contact NACAC's Adoption Subsidy Resource Center at 800-470-6665, 651-644-3036, or e-mail at adoption.assistance@nacac.org. Ask for Josh Kroll.
Families who adopt a child with special needs from foster care can claim a federal adoption tax credit without needing to incur or document expenses. The per-child tax credit is $11,650 for adoptions finalized in 2008, and $12,150 for those finalized in 2009, $13,170 for those in 2010, and families have six years to use the entire credit.
If your child receives an adoption subsidy, then according to the IRS, you qualify for this credit, as long as your income in 2008 did not exceed $214,730 or $222,180 in 2009. To read more about what defines an adoption subsidy, click here. Adoption subsidies are not taxable. You can read more about that here.
To determine how much you qualify for, look at line 46 of your 1040 to determine your tax liability. If for instance, you adopted a child in 2008, and your tax liability was $7,000, then you would receive that amount refunded to you. Since your tax credit amount per-child is $11,650, then the amount leftover after deducting $7,000 would be rolled over to the next year and credited to you. You can continue rolling over any leftover amounts for up to six years. Please see the printable article from NACAC below. You can download it or print it out and take it with you if you decide to amend your previous year's taxes.
For additional information, please contact NACAC's Adoption Subsidy Resource Center at 800-470-6665, 651-644-3036, or e-mail at adoption.assistance@nacac.org. Ask for Josh Kroll.
2011 Bills to Watch
This hyperlink that is most critical with stats, info, bills, etc is listed below.
http://www.nacac.org/policy/statefactsheets/MO.pdf
Adoption Stats- November adoption awareness month
Current Legislative Issues Effecting Foster Care & Adoption-
As of September, 2011The Child and Family Services Improvement and Innovation Act (H.R. 2883/S. 1542) is a bipartisan bill that amends Title IV part B of the Social Security Act to reauthorize the Stephanie Tubbs Jones Child Welfare Services Program and the Promoting Safe and Stable Families (PSSF) program through 2016. PSSF is a federal program that provides funding to states for adoption promotion and support, among other things. There are quite a few states that use these Title IV-B2 funds to provide critical post-adoption services.
H.R. 2883/S. 1542 requires each state to send a report on how they spent the funding as a direct result from the increased federal investment in adoption assistance that was part of the Fostering Connections to Success and Increasing Adoptions Act of 2008. The Central Missouri Foster Care & Adoption Association is excited to see this bill up front and center. It could mean funding through the state of Missouri for post-adoption services. These would include funding for our respite programs, training, support groups specifically targeting adopted children and families, information and referral from our Resource Center and much more.
To support this critical bill that would change the lives of thousands, ask your Representative to support H.R. 2883/S. 1542 by:
- Calling the U.S. Capitol Switchboard at 202-224-3121 and ask for your Representative's office. Tell your representative's staff that you are a constituent and you want them to pass H.R. 2883. Call the U.S. Capitol Switchboard at (202) 224-3121 and ask for your first Senator’s office. Tell the Senator's staff that you are a constituent and you want them to pass S. 1542.
- Call the switchboard again and ask for your other Senator. Tell the Senator's staff that you are a constituent and you want them to pass S. 1542.
Official Summary:
10/15/2009--Introduced.Every Child Deserves a Family Act - Prohibits an entity that receives federal assistance and is involved in adoption or foster care placements from discriminating against prospective adoptive or foster parents solely on the basis of their sexual orientation, gender identification, or martial status. Requires a General Accounting Office study and report to Congress on whether states have substantially complied with this Act in eliminating policies, practices, or statutes that deny adoption rights on the basis of these criteria.
Says Gillibrand: "New York is a leader on ensuring that any family can adopt children and sets a great example for the rest of the country. By removing all barriers for LGBT families to serve as foster parents, New York State has increased its foster parent pool by 128,000 prospective parents. This legislation would open thousands of new foster and adoptive homes to children ensuring they are raised in loving families."
North American Council on Adoptable Children position statement & educational information on LGBT issues pertaining to adoption and foster care:http://www.nacac.org/policy/lgbtq.htmlTo read more about this bill:http://www.gillibrand.senate.gov
Priorities for CCMFCAA
Define the Missouri State Foster Care and Adoption Board in statute.
This board should serve as a review body for Children’s Division policies related to the provision of foster care and adoption services to children and families.
The board (comprised of foster and adoptive parents from every area of the state of Missouri) should work in partnership with the Children’s Division’s Central Office to both draft and review policy changes in current foster care and adoption processes.
This would provide the Children’s Division with more “real-time” information and help increase communication between the Children’s Division and the foster care community, resulting in better coordination of care for foster children
Status: Introduced 2-11-10
Revise the current Foster Parent’s Bill of Rights (RSMO 210.566) to strengthen provisions related to the rights of siblings to be placed together in foster and adoptive care, and to strengthen provisions to ensure the professional treatment of Missouri foster parents.
Protect funding for foster care maintenance and adoption subsidy for families caring for Missouri’s abused and neglected children.
Protect the Privacy of Children in Foster Homes
Revise the foster home licensing statutes to exclude foster parent’s records form those considered open under Missouri’s Sunshine Laws, unless opened by an order from a court of competent jurisdiction.
Empower the Office of the Child Advocate
Add the authority for this office to legally intervene in specific child abuse/neglect actions, when the interests of the children subject to an OCA investigation warrant this type of intervention for the child’s protection or best interest.
Missouri Health Net
Continue to work to protect adequate and accessible physical and mental health treatment for children in foster care and adoptive homes
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