Update about the Adoption Tax Credit

[Polliwog]

I just found some IRS information about the newly refundable adoption tax credit. It looks like carry over credit from previous years adoptions will also be refundable. Here's a link that gives an overview and has links to an IRS memo and drafts of the new tax forms. However, we will have to file paper tax forms. We'll have to submit some paper documentation with our tax returns and won't be able to use electronic filing.

http://taxes.about.com/b/2010/10/04/...t-for-2010.htm

[queencarr]

OK, paper filing is annoying but worth the giant 2 adoption tax credits we have. I almost cried reading that--dh was laid off a couple of months ago, and is working now as a contractor, but a paycheck is weeks to months away.

ETA: You seriously just made my weekend!!!

[Polliwog]

I had heard rumors but I was happy to see confirmation from the IRS. I'm equally happy. I haven't been working very much and I haven't touched any of my DS's ATC. And Polliwog's adoption will finalize next month.

BTW, I was just thinking of you earlier today.

[queencarr]

We haven't touched Isaac's, and have rolled over most of Connor's credit.

I miss chatting with everyone--things are still...intense here, with Isaac. 100x better but not great (just posted a thread of desperation in SN about sleep). I have been collapsing at night as soon as they all get to sleep

[BeckC]

Have we heard if the credit is going to be extended again? Or is 2010 the last year for it?

[Polliwog]

The Health Care Bill extended it for adoptions in 2010 and 2011. We likely won't know for a while if it will be extended after that or go back to the approximately $5,000 it used to be.

[RedOakMomma]

Carrie!

New baby = no time to wade through IRS. Can someone condense what's going on for me? Does this mean that our adoption, finalized in 2009, is now refundable?? As in refundable the way the 2010 adoptions were? Lump-sum refundable?!?

Ohmygoodness, that would be something.

And do we have to have claimed tax credit in a previous year in order to qualify?? We didn't bother filing anything adoption-related in 2009 because our income that year would mean we wouldn't get any adoption-related costs back.

[Polliwog]

Yes, it's completely refundable. And I think you might have to file an amended tax return for last year. If that's the case, you should probably do it now so that it can be processed ahead of the busy IRS time.

[RedOakMomma]

Oh wow.

I hope the amended tax return thing is enough, but it should be, right? I mean, you can amend in order to get something in your favor, right?

...Will get on that ASAP!! Thank you!

How much is refundable for pre-2010 adoptions? Does anyone know the limit?

[queencarr]

ROM, thanks. Isaac has to, has to sleep someday, right??? I can't imagine never having had a good night's sleep my entire life, and I try to think of that when he is on his 3rd or 4th (long) tantrum of the day Although, he is doing fantastic at preschool lately, so I am hopeful that translates to home soon.

Yes, you will have to file an amended return on last year, if I am reading right. Then you can take the credit for this year and it is all fully refundable With the new little one, can you just drop it all by the tax person and let them sort out the details on the amended return? I am all for easy these days Finalized in 2009 credit=$12,150!!!!

[RedOakMomma]

Where's that fainting smilie when you need it???? 12K?!

(Carrie...hugs and more hugs on the sleep deprivation. He DOES have to sleep someday. If it stays this bad, could they do an earlier surgery to help him breathe better?

...and I hear you on the tantrums. Miss E is still a handfull, and it sounds like it's often in the same situations as your Isaac. She seems to have a difficult time attaching (or remembering) consequences to behaviors, and she is one of the most stubborn/willful children I've ever met. That means, when she gets going on a tantrum or meltdown, she keeps it up FOREVER. I've never met a child that had so little ability to be influenced in those situations...it's like she just wants to scream until she feels like she's done with it, and nothing you say or do can change that. It's not so bad at home, because we have set consequences for that behavior and can give her a room or space to be in, but when we're out in public it's really hard. She had two meltdowns while hiking last Saturday, and you should have seen the dirty looks we got from people. And don't even get me started on her public display at TJMaxx the other day....

I've been thinking of reading that book that always gets mentioned in the SN forum...something about how to parent the high spirited child, or something like that. Right now it all seems on the extreme end of the normal range, but it's still difficult as a parent. I feel like I need some new ways to mentally approach her behaviors, because there are days when I'm just fed up with it all. She's such a sweet kid, so willing to help and love and be loved, but when she's tired or angry or upset she can be completely out of control. It wouldn't be so bad if it happened with the frequency of a typical kid, but she seems to get out of control much more often than that. There are days, after the kids are in bed, when dh and I sit and complain/decompress about dd for a while. Sometimes she makes for a VERY long day.

[MissinNYC]

I am not sure what "paper filing" means. Can I still use like, HandR Block or TurboTax, but just print it out and mail it, instead of efiling?

[Polliwog]

You just need to have a paper copy to make in with the supporting documentation that they are now requiring. I hope that the tax software will allow it. Most allow you to print and mail but the IRS may not allow them to use an electronic version of the ATC form. So....we'll see.