It’s that time of year when families are preparing their finances for tax season. For 2013, the maximum adoption tax credit is $12,970 for all qualifying adoption expenses. The adoption credit is not refundable, which means that only those individuals with tax liability (taxes owed) will benefit. The credit will remain flat for special needs adoptions (those involving children who are deemed hard to place by a child welfare agency), allowing those families to claim the maximum credit regardless of expenses.
The adoption tax credit income limit is based on modified adjusted gross income (MAGI) and is recalculated each year. In January 2013, the Federal Adoption Tax Credit was made permanent. However some believe that discussion of tax reform by Congress could change this permanence.
If your family also lives in a state that offers an adoption tax credit (amounts vary by state), they may receive credit for additional expenses as well.
Read more about the Adoption Tax Credit, qualifying expenses and how employer reimbursements could affect your tax credit status on our website. Or follow the blog for any new updates on the adoption tax credit.
Adoption Tax Credit Before Finalization
Each year, a number adoptive families ask if they can file taxes without their child’s social security number, which is typically received after the adoption is finalized.
Your adoption attorney should apply for a SSN along with the final amended birth certificate after the finalization court hearing. If you do not have these items yet, you or your accountant and/or tax representative can apply for a temporary tax identification number for the baby. You can file your taxes with that number. Here is a link to Form W-7A for information about obtaining a temporary tax ID number. You can also search the IRS website for Adoption Taxpayer Identification Number information.
For more information on the adoption tax credit and exclusion, visit www.irs.gov. American Adoptions also recommends that you contact a local accountant or qualified tax professional for more specific information for your family.
Please Note: Tax credit information for the 2014 calendar year has not yet been announced.
Reminders for Waiting Families
Send Us your Tax Forms
All families currently working with American Adoptions and waiting for an adoption placement are reminded to send us the front page of their 1040 Tax Form for 2013. We need this updated information each year. For more information, contact Sara Dippel (email@example.com) at 1-800-ADOPTION.
Don’t Forget to Add Updates to Your 2014 Calendar
When going through and marking birthdays, anniversaries and other important dates on your 2014 calendar, don’t forget to add a reminder to update your home study and supporting documents, as well.
American Adoptions requires home studies to be current within one calendar year. Although our agency will alert you when your home study is approaching expiration via email reminders, home study updates are the responsibility of the adoptive family.
Families are also required to update their home study whenever there is a major life change – such as a change in employment, residence or household members.
Home study updates are the responsibility of the adoptive family, so each family should carefully note when their home study is to expire. The importance of updates cannot be understated. If an expectant mother chooses you, but your home study or other supporting information is out-of-date, it can seriously compromise or even prevent you from completing the adoption.
In addition to your home study update, there are three supporting documents which require yearly renewal:
- Background Clearances- Your background clearances, such as your child abuse, FBI and criminal clearance must be updated annually.
- Physician Health Reports- Like background clearances, your physician health reports also must be updated annually.
- Tax Return- A copy of your tax return must be updated each year.
If you do not know when your home study or supporting documents will expire, simply contact our agency and we will be happy to assist you.
Upcoming Seminars for 2014
As we embrace a new year and leave another holiday season behind, many families begin to think about the things that really matter to them. For many couples, this means growing their family. Wonder if American Adoptions can help you add to your family? Curious about domestic adoption? American Adoptions can answer all of your questions at our free upcoming adoption seminars for adoptive families. Topics of discussion include:
- The differences between domestic, international and state adoption
- American Adoptions’ advantages over other adoption professionals
- Details on the domestic adoption process
- Common myths concerning domestic adoption
Participants will also have the opportunity to hear from and ask questions of an adoptive family that adopted through American Adoptions. These families volunteer their time because they’re passionate about adoption. Just last month, our Adoptive Family Coordinators shared what they love about doing adoptive family seminars too!
Watch the video below to learn more about our seminars as well:
Date: Saturday, March 8th, 2014
Time: 10:00 AM – 12:00 PM
Where: Hilton McLean – Tyson’s Corner
7920 Jones Branch Drive
McLean, VA 2210
Notes: There is no cost for this seminar; however, pre-registration is required. To pre-register, email Justin King at Justin@americanadoptions.com or call 1-800-ADOPTION. Please provide your name, phone number(s) and how many will be attending. Feel free to contact us with any questions regarding our seminars for adoptive families as well.
Date: Saturday, March 22nd, 2014
Time: 10:00 AM – 12:00 PM CST
Where: Marriott St. Louis West
660 Maryville Centre Drive
St. Louis, MO 63141
Notes: To pre-register, email Jason Tabuchi (Jason.T@americanadoptions.com) or call 1-800-ADOPTION. Please provide your name, phone number(s) and how many will be attending. Feel free to contact us with any questions regarding our seminars for adoptive families as well.
Date: Saturday, April 5th, 2014
Time: 10:00 AM – 12:00 PM EST
Where: Hilton Tampa Airport Westshore
2225 North Lois Ave.
Tampa Bay, FL 33607
Notes: There is no cost for this seminar; however, pre-registration is required. To pre-register, email Mike Aguilar (Mike@americanadoptions.com) or call at 1-800-ADOPTION. Please provide your name, phone number(s) and how many will be attending. Feel free to contact us with any questions regarding our seminars for adoptive families as well.
Providing Free Adoption Tele-Seminars This Spring
If you or someone you know has wondered about adoption and wants to learn more, American Adoptions also offers free, educational tele-seminars to educate the public about their adoption options and bring people together across the country. These tele-seminars cover much of the same information as our Adoption 101 Seminars but allow you to dial into our telephone conference from the convenience of your home. If you are unable to attend one of our seminars in person, let us bring a tele-seminar to you!
To learn about an adoption tele-seminar with American Adoptions, call 1-800-ADOPTION or email an Adoptive Family Coordinator AF.Coordinators@americanadoptions.com.
Date: Wednesday, March 12th, 2014
Time: 8:00 PM CST
Date: Wednesday, April 9th, 2014
Time: 8:00 PM CST
Date: Wednesday, May 7th, 2014
Time: 8:00 PM CST
Notes: There is no cost to attend a tele-seminar.
Pre-registration is required. To pre-register, email Mike Aguilar at firstname.lastname@example.org or call 1-800-ADOPTION. Please provide your name(s) and how many will be attending. Feel free to contact us with any questions regarding our seminars for adoptive families as well.
To participate in the tele-seminar, dial 866.434.5269 and enter code 3796240 to join the conference call.