Late to the Adoption Tax Credit party

December 22, 2011

DianeS

I have not heard that the IRS is permitting people who amend earlier returns (prior to 3 years ago) to receive any money back for those returns.

BUT, if amending those older returns allows you to claim more of a return within the most recent 3 years, then refiling those older returns is allowable.

For instance. If you adopt in 2005 and didn't do any federal adoption tax credit stuff because it would only be peanuts, and then decide that because it's refundable in 2010 that you should:

First you re-do your 2005 taxes, and find out how much you should have gotten back, and what your carryover is. You can't get that money back, because it's more than 3 years ago. Then redo your 2006 taxes, using the carryover, and figure out how much you would have gotten back and how much your new carryover is. (Still can't get that money back.) Same for 2007 - use the new carryover amount, figure out how much you would have gotten back in 2007, and whta your new carryover is - but without getting the money back.

Then you hit 2008 - redo the taxes with the new carryover amount, figure out how much you would have gotten back, andyour new carryover amount. You DO get that money back. In 2009, same thing - new carryover entered, how much you get back, and new carryover amount - you DO get that money back. In 2010, enter new carryover amount, and because it's refundable you get ALL that remaining carryover and you're finished.

You don't get any of the potential money back for the 2005-2007 years, because they are too old. But you do get the 2008 - 2010 money back, because that's within the past 3 years. But if you don't redo your 2005-2007 taxes, you would not have the correct numbers to know what to put on your 2008 taxes. Therefore, you have to redo the tax returns from the date of the adoption even though you can not receive any money back from those earlier amended returns.

Hope that helps!

This is exactly what I had to do with H & R Block. It's been a complete nightmare with H & R Block and the government.

Each time they move your taxes to a different department not all or any of your supporting documentation follows. I filed by mail on April 13th. I just got a letter on Saturday saying they needed mor information, so today I'm going to meet with my H & R Block tax person to see what I need to send this time.

I feel it's almost like they don't want to give me the money and are hoping if they give me enough hoops to jump through I'll finally give up. It isn't happening! The IRS tells me though they have so many people committing adoption tax fraud, they just have to be extra careful. So eight months later, I still don't have my adoption tax refund and look it's time to file for 2011. Ah the joys! Thank God I wasn't counting on this money for anything important, like say another adoption.

Best of luck!