Good news about tax credit! - Page 3

[heatherdeg]

Originally Posted by queenjane

But you dont HAVE to roll it over for five (six?) years...that was just a benefit to parents who didnt pay the whole thing in taxes in one year. But you COULD have gotten it back in one year if you did pay that much in taxes. So i dont see why it being refundable would change that (and there would be no point in rolling it over if you could get it all back in one lump sum anyway.) They gave the homebuyers credit in one lump sum.

Okay... as it applies to special needs adoptions out of foster care (because otherwise, it's really just reimbursement for adoption expenses):

If it's refundable, then the people who are unable to use up the credit over the course of 5-6 years (whatever it is) would actually get the money vs. getting credit towards money paid in. After deductions, our taxes due were only $11,250-ish so we were only able to use up about $11,250 of the $12,150 credit for 2009. But there are MANY people who don't rack up a tax bill THAT high.

So let's say someone (after deductions) racks up a tax bill of about $1,500/year and they adopt two kids... same year or 1-2 years apart. Currently, they would never see the full benefit of that credit. Over 5 years, they'd use up $7,500 of the credit total even if during that time they had two credits available to them.

If it were refundable, they'd get the full amount and derive the full benefit of the program.

We finalized in Oct. 2009. We were VERY happy at tax time this year.

[sbrinton]

At this point it is 2010 and 2011, then it will have to be extended again.

The tax credit from prior years still exists, it is just not refundable beyond the amount of taxes you owe, so you can claim it over several years.

It's good news for us. We're hopefully starting the process in April or May and will bring home our little girl about 1 year later, so we'll be in the range!

It's helped my husband to relax about the finances. With some friends at our church, we're starting a no-interest loan fund to help families afford to adopt. With the shorter turn around on the tax credit, I think the fund will be able to help more families.

[Marcimama]

Can some one post a link to the actual Healthcare bill that says this?
From my understanding most things in the bill won't even be in effect until 2018... so I am wondering how the HC bill makes this possible for such a short time? I am not understanding this... sorry.

[Polliwog]

It's on page 903 of the bill. Let me know if you can't find it. The bill was expected to sunset (go back to the original $5,000) at the end of this year. It was added to the HC bill to get it through as an extension for one more year.

[pumpkingirl71]

Many aspects of the HC bill are rolling. Yound adults can stay on parental health care as early at this Fall. Our family just finished up claiming our tax credit and it has been so helpful. Glad it is extended and increased to help other families

Originally Posted by Marcimama

Can some one post a link to the actual Healthcare bill that says this?
From my understanding most things in the bill won't even be in effect until 2018... so I am wondering how the HC bill makes this possible for such a short time? I am not understanding this... sorry.

[natashaccat]

any clue if my foster ds would be qualify as special needs? He's a perfectly healthy infant and we have reason to know that there was no drug alcohol exposure after 1st trimester but he is Native American. We were planning to ask for $0 subsidy because he already has access to free public health care through his tribe.

[queenjane]

Originally Posted by natashaccat

any clue if my foster ds would be qualify as special needs? He's a perfectly healthy infant and we have reason to know that there was no drug alcohol exposure after 1st trimester but he is Native American. We were planning to ask for $0 subsidy because he already has access to free public health care through his tribe.

It depends on your state, in general. In my state most children under three (unless they have significant needs or are part of a sib group of older kids) generally do not qualify for subsidy and therefore are not "special needs." If he doesnt get a subsidy then he likely would not qualify for the adoption credit under the special needs section.