NACAC is offering two webinars on the adoption tax credit—on February 10 (2:30 p.m. central time) and February 16 (7 p.m. central time). During these webinars, participants will learn the steps they need to take to file for the U.S. federal adoption tax credit, whether they adopted in 2011 or as far back as 2005. Presenter Josh Kroll will explain what parents need to do to take advantage of the credit, which became refundable in 2010 and 2011.
Key points include that parents do not need to have taxable income for the refundable credit and that parents who adopt children who receive adoption subsidy benefits do not need to have expenses to claim the credit. The session will focus on families who adopted children with special needs from foster care but will be applicable to all adoptive families as well.
Webinar registration is $15 for NACAC members and $20 for non-members.
Adoption Tax Credit Awareness Day—February 13
We are asking everyone in the adoption community to take part in the first grassroots Adoption Tax Credit Awareness Day. Unfortunately, many adoptive families are still not aware that this tax credit exists. It is our goal to help ensure that all adoptive families who are eligible to receive this benefit are informed about how to claim the credit.
We are asking everyone, including professionals, advocates, state agencies, families, and others to help broadcast the existence of the adoption tax credit on one given day—February 13. You can either copy this text into an e-mail or print flier you share with others or download a flier to distribute.
Save the Date: Plan now to be part of the Adoption Tax Credit Awareness Day on Monday, February 13, 2012—a national effort highlighting the federal tax credit available to adoptive families.
Play Your Part: Join with adoption organizations, state agencies, adoptive families, advocates, and other interested parties to raise visibility of the adoption tax credit. Help spread the word collectively, through website postings, e-mail blasts, newsletters, social media, and other informational outlets, so eligible families that may not be aware of this benefit can be sure to access the credit. Families who adopted as far back as 2005 may still benefit if they haven’t already. Be sure to include non-internet based strategies since some adoptive families do not have access to the internet.
- Since 2003, families who adopted a U.S. child with special needs from foster care could claim a federal adoption tax credit even if they had no adoption expenses (as long as their income was below the fairly generous income requirements).
- Children who receive adoption assistance/subsidy benefits are considered children with special needs. Even families who receive a deferred subsidy ($0 per month but medical coverage through the subsidy program) are eligible.
- All adoptive families (except those who adopted a step-child) are eligible for the credit, but those who adopt children other than those with special needs must have—and be able to document, if requested by the IRS—qualified adoption expenses.
- For 2010 and 2011 the credit was made refundable. If parents who adopted as long ago as 2005 had credit to carry forward into 2010, that amount of the credit also became refundable. In 2010 and 2011, parents can claim the credit even if they don’t have income or any tax liability.
The amount of the credit for 2011 is $13,360 per child.
- NACAC Tools & Resources: http://www.nacac.org/taxcredit/taxcredit.html
- IRS Form 8839 Instructions: http://www.irs.gov/pub/irs-pdf/i8839.pdf
- IRS Form 8839: http://www.irs.gov/pub/irs-pdf/f8839.pdf
- IRS adoption tax credit FAQs: http://www.irs.gov/individuals/article/0,,id=231663,00.html
- Voice for Adoption’s distributable postcard: http://voice-for-adoption.org/adoption_tax_credit
Thanks for taking the time to make this count for adoptive families!