Anyone else loving the tax rebate?

[Whistler]

For the next two years, Hubby discovered that we can have the amount of our adoption reimbursed in full, up to $13,000 even if we did not pay that much in taxes.  So we will get a hefty chunk back this year for adoption #1 and a hefty chunk next year when we finish adoption #2.  This could not have come at a better time!

Has anyone else (in the U.S.) looked at this?  Did you do a MAJOR happy dance when you found it???  We did!

[Polliwog]

Yep, I'm happy. And completely frustrated with the IRS and getting consistent answers. I need to go to the local IRS office with my forms and get them to help me. The 2010 tax forms are easy. It's the dang blasted amended returns that I had to do because I didn't claim DS's adoption back in 2008 that are  frustrating me.

[RedOakMomma]

I don't think you need to ammend all the way back to 2008.  We adopted in 2008, but only are ammending our 2009 returns.  Since the new 13,000 can only be given to you to cover remaining tax credit or existing expenses in 2009, we're just ammending our 2009 tax return to show that we could claim up to 13K+ of adoption expenses.  For that 2009 return, we're only getting a few hundred of that back through the 2009 tax credit program.  But now we can roll it over to 2010 and get it the rest of the 13K back.

We used a tax guy to do it all.  He went over two years of taxes, refiled everything, and only charged $75.  Oh yeah, and he found a few hundred in other things we missed.  sweeeeeet!

[zombie]

Originally Posted by RedOakMomma 

I don't think you need to ammend all the way back to 2008.  We adopted in 2008, but only are ammending our 2009 returns.

According to the North American Council on Adoptable Children:

"You must file for the adoption tax credit in the year you finalized the adoption."

http://www.nacac.org/postadopt/taxcreditbefore2010.pdf

[Polliwog]

I spoke with the IRS directly and am planning to go to the local office tomorrow to confirm a few things. But, you absolutely have to file/amend for the year you adopted and then for each year afterward. And you won't qualify for the $13,000. Only for the amount that you were eligible for the year you adopted.

[RedOakMomma]

Whoops...I was wrong!  We finalized in 2009.  :)

I'll have to look up how much we could claim in 2009.

Good thing I'm not the one in charge of filing this stuff, huh?  What a mess I'd make of it!

[Polliwog]

ROM, that makes more sense. Thanks for updating. I do have a question for you, now. What did your tax guy say about amending. Do you have to wait until the amended return is processed by the IRS before filing your 2010 return? I called the IRS hotline and the worker told me that I didn't need to wait and that I could just send in my 2010 return. I'm worried that doing that will cause the whole thing to be delayed since they probably won't have the amended returns on record and therefore no justification for granting me the carryover credit. I asked if I should include copies of the amended returns (2008 and 2009 in my case) along with a copy of DS's adoption degree and I was told, no.  DD's adoption was just final in November so hers is much more straightforward.

[zombie]

Originally Posted by Polliwog . Do you have to wait until the amended return is processed by the IRS before filing your 2010 return?

I have a friend who recently amended a few years worth of returns in order to claim the tax credit.  Her tax preparer sent them in about 2 weeks apart, the oldest return first.  I am not sure that it is required, but that is what that preparer suggested.

[RedOakMomma]

Yeah...we did all the court paperwork in 2008, hoping to get it done then, but our court date was pushed into 2009.  It's always confusing to me.

With the amended returns, we sent ours in about 6 weeks ago and just got our return this week.  Now we'll send in our regular return.  The tax guy suggested this timing...basically giving the feds a chance to enter our ammended return before we send in the regular one.  If you have an ammended return ready, I'd send it in and wait a month, then send in this year's taxes.

[christophersmom]

We are happy, DH still doesn't quite belive we will get all that money back. I beleive it but it won't be real until we actually get it.

[Whistler]

Originally Posted by christophersmom 

We are happy, DH still doesn't quite belive we will get all that money back. I beleive it but it won't be real until we actually get it.

We feel sort of the same way... like I'll believe it when I see the direct deposit come through.  It almost seems too good to be true.  But we double-checked it and we're pretty sure it's true...

[Polliwog]

Originally Posted by RedOakMomma 

Yeah...we did all the court paperwork in 2008, hoping to get it done then, but our court date was pushed into 2009.  It's always confusing to me.

With the amended returns, we sent ours in about 6 weeks ago and just got our return this week.  Now we'll send in our regular return.  The tax guy suggested this timing...basically giving the feds a chance to enter our ammended return before we send in the regular one.  If you have an ammended return ready, I'd send it in and wait a month, then send in this year's taxes.

I sent in the amended ones last week (together) but I was told that they won't be processing amendments until after the busy season. I should add that I "thought" that I had finished the amended returns and mailed them in last November or so. Apparently, I never did. Darn ADHD.