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We will be adopting later this month.:banana: My husband's company has an adoption assistance program. We are adopting a sibling group and qualify for the tax credit. Our question is, if we get some reimbursement from his company do we lose all the tax credit or only the amount we get from his work? So the credit is about $12,000 per child, we get $2000 from his work. Do we still get to claim $10,000 or do we lose that ability? Anyone know?
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The numbers that matter in employer assistance questions are your COSTS and the amount of the employer assistance. If your adoption COST $7,000 and the reimbursement was $2,000 then you are left with $5,000 to claim as the credit. Or, if your adoption COST $20,000 and the reimbursement was $2,000 then you are left with $18,000 (but the credit is only around $12,000 so you can still only claim the $12,000). You are posting in the foster care section, so I'm going to assume your adoption is from foster care. So I'll include this example: If your adoption COST $0 and the reimbursement was $2,000 - then you still have a cost of $0 for your adoption. And you continue to fill in the form with $0 in costs. (Remembering to check the "special needs" box and follow the "special needs" rules if it applies to your situation.) Of course, this only applies if the federal adoption tax credit exists for adoptions in 2012, and if it exists in a form very similar to how it existed before. Congress is known to wait until the very last minute and then make drastic changes to that particular law. So far those drastic changes have always been good for those who adopt, but only time will tell what will happen this time.
happymamma
We will be adopting later this month.:banana: My husband's company has an adoption assistance program. We are adopting a sibling group and qualify for the tax credit. Our question is, if we get some reimbursement from his company do we lose all the tax credit or only the amount we get from his work? So the credit is about $12,000 per child, we get $2000 from his work. Do we still get to claim $10,000 or do we lose that ability? Anyone know?
I thought the tax credit was automatic if your child qualified for it, even if you ended up with no out-of-pocket expenses? The $10,000 per child was over 5 years, even though we didn't actually pay for the adoption (the state covered the cost because the kids were special needs)? Just like the Earned Income Credit you get for having children?
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Kezs
I thought the tax credit was automatic if your child qualified for it, even if you ended up with no out-of-pocket expenses? The $10,000 per child was over 5 years, even though we didn't actually pay for the adoption (the state covered the cost because the kids were special needs)? Just like the Earned Income Credit you get for having children?