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I have emailed NACAC, Chris Morrison at IFCAA and Rick Peterson, asst. deputy director for Central Eligiblity Unit at DCS in Indy. Rick Peterson stated "The 1099 forms are being submitted by the State now that payments for Adoption Assistance have transitioned from the counties. The State is submitting these 1099 forms based on IRS guidelines on 1099's.
As the letter about the 1099's explained, the State cannot offer tax advise. So, continue to consult your tax preparer (or the IRS), as you referenced below, to ensure proper treatment of adoption assistance on your tax return. Every place that I checked states, the adoption subsidy is not taxable or reportable income. There is a very complete downloadable IRS publication at [url=http://www.nfpainc.org/]The National Voice of Foster Parents[/url] This is the National Foster Parent website. My thought is, it is not reportable taxable income. I have researched it for two days. I think everyone should band together on this. My attorney and NACAC are saying the state is wrong in sending out 1099 misc on our subsidies. The only time you have to include it is, if it is your ONLY income.