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Originally Posted By Robin JAndy--I have the same ?'s as you. It's nice to be in "phase out" levels but egads, the math! Check out this website for the formula under the old creditBy "modifying" this formula with the new numbers I came up with this formula which I THINK is correct:Allowable Credit = QAE -[QAE X ((MAGI - 150,000)/40,000)]QAE = Qualified Adoption ExpenseMAGI = Modified Adjusted Gross Income.Assume QAE of $10K and MAGI OF $160,000 then:10,000 - [10,000 X ((160,000 -150,000)/40,000)]10,000 - [10,000 X (10,000/40,000)]10,000 - [10,000 X .25]10,000 - 2,500Allowable Credit = 7,500OK--MY question--I guess you use the AGI for the taxable year in which the credit is TAKEN to determine the phase out rather than the year the adoption expenses were incurred (assuming that is an earlier tax year)?? Sounds logical but I haven't got a firm answer on this part yet!
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Originally Posted By fe fei have a good one..i am listed as a relative caretaker..hve not adopted, but thinking about it..now last year i filed taxes and h&r block told me tht my husband and i made too much money to earn the tax credit..also they stated tht someone ws using one of my 1st cousins social and has already filed and received a chk..i snt this information to the irs along w/ a copy of the custody paper and received my chk..i know it should hve been more thn wht i rec'd however i let it go becuz it ws too much going on and i ran out of time..now this is delaware law..thy stated tht somthng to the fct tht thy couldn't do anything to the person tht used one of girls social to file their taxes and i am trying to see if i am able to get their social chnged but in the mean time what in the world does income tax credit hve to do with how much money you make if you are not even a foster parent? just a relative caretaker