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We got our 1099-Misc form today. When I looked at it, I thought that looks a little high for Kyle's adoption subsidy from 27 Aug 2009 to 31 Dec 2009. Good thing I checked it. It was about $700 too high. I called the state auditor's office and apparently there were a lot of errors. They are sending out a corrected 1099s in a couple of weeks.
And dh was taking our tax papers into the accountant tomorrow.
This is just absolutely insane. If they start making people claim the per diem as income they are going to lose a lot of foster parents.
I printed out the Tax year 2009 National Foster Parent Association Federal Tax Benefits and it is so confusing. On one page it states
Form 1099-MISC- Paymets for services performed for a trade or business by people not treated as it's employees. This form is issued to the service provider when $600.00 or more is paid during the calendar year (tax year). It also states that "If a foster parent receives taxable payments the agency issues a form W-2 or 1099-MISC to the foster parent and IRS. The income must be reported on the tax return. Consult a tax professional for the proper reporting on your tax return.
But then when you look on the next page it states "Payments received from a state, political subdivision, or a qualified foster care agency for providing care to qualified foster individuals in your home generally are not included in your income. However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulyt of care payments.
So I am really confused???
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This was DCS website
■Notice to Adoptive Parents Regarding 1099
In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.
We sincerely apologize for any inconvenience this has caused you
jolconduitt
This was DCS website
■Notice to Adoptive Parents Regarding 1099
In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.
We sincerely apologize for any inconvenience this has caused you
Thank you for posting this.
Dh elaborated on what our accountant said last night. He was afraid that not only would we have to pay taxes on it as it was written but also Medicare and Social Security.
I made a copy of this and we will run it over to him the first thing Monday morning.
jolconduitt
This was DCS website
■Notice to Adoptive Parents Regarding 1099
In the next few days you will receive a 1099 Misc form from the State of Indiana in regard to the adoption assistance payments you received from the state in 2009. Please note that this form was sent in error and will be corrected. None of the adoption assistance payments you received in 2009 were reported to the IRS as income. You will receive a corrected 1099 form that no longer includes the adoption assistance payments in that report.
We sincerely apologize for any inconvenience this has caused you
Thank you for posting this.
Dh elaborated on what our accountant said last night. He was afraid that not only would we have to pay taxes on it as it was written but also Medicare and Social Security.
I made a copy of this and we will run it over to him the first thing Monday morning.
Well now I'm really confused.. If they are correcting them and sending them out WITHOUT our adoption subsidy on them.. what the heck would be on them?? Am I right in understanding that ONLY adoptive parents have received the original 1099, not foster parents??
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Well I am a foster parent and I recieved a 1099 on Saturday. The amount shown in the box is less than half of what we were paid in per diems. The message on DCS website sounds specific to "adoptive" parents. Anybody know what the status of these 1099's are for foster parents?
Well, if we only get 1 that combines the foster and the adopted, it still wouldn't add up correctly. I know other foster parents who got the forms, but not the letter prior to that. We only got the letter re: the adopted kids, not the foster. What a stinking mess!
DCS Website has an update for foster parents & 1099s now too ::
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Notice to Foster Parents Regarding 1099
The 1099 that foster parents recently received regarding foster care maintenance per diems was sent out in error. Foster parents will be receiving a corrected 1099 from the State that will, in all but a limited number of cases, show zero reportable income related to the foster care maintenance payments that parents have received.
In addition, at this time, no income related to foster care per diems has been reported to the Internal Revenue Service.
We sincerely apologize for any inconvenience this has caused you.
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So....i just got a 1099-misc with about 1/2 what we rec'd in foster per diems. We only fostered 3 kids - no adoptions. How did this resolve last year? No foster parents had to pay/report anything for foster per diems? I hope so! Emailing dcs tomorrow. thx!
Nicole- I got the 1099 last year and in the end the state resent new ones with a $0 amount in it. You should not have to claim/report the foster per diem payments (adoption subsidy is not reportable either!).
Do they ever do anything right the first time around here?? I was being paid the foster per diem for more than half the year last year. finalized adoption in July. I havent recieved the 1099 or the letter .. I did recieve one the prior year and didnt have to put that on any tax forms. just seems like everything they do they have to redact and correct.of course not before it has caused chaos to everyone!!!
We live in Kansas and received one yesterday. Called the number on the 1099 and left a message. I am hoping this gets straighten out and doesn't mess up our *already* filed tax return! :mad: Oh, and the amount isn't even accurate!
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No one called me back, but the answering message is now saying it was a mistake and corrected ones will be sent out. Whew! :banana: