Tax Question

February 26, 2008

I was told that the interest in my adoption loan is considered an adoption expense and can be applied for a full tax credit. Is this true? I don't see it in the qualified adoption expenses on the form 8839 instructions. I appreciate any insight to this matter.

Also we received a grant for 2000 from shohanas hope. Do I deduct that from my adoption expenses? or is it considered taxable income or is it a non-taxed grant?

Thanks in advance,

Garner

zempagirl

February 27, 2008

I know we provided receipts to our tax person when we used the adoption tax credit. SO I would think the loan is fine as long as you show proof in paying for adoption expenses. I would think the grant would not apply as this is money that was given to you by a non profit. I would encourage you to consult with a tax person. lawyer, or someone at your adoption agency.