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Post by candace on May 8, 2010 18:09:00 GMT -5
I've experienced my 2nd loss, and DH and I are starting to talk about adoption. For a variety of reasons, I think we'd be inclined to look domestically. Anyway, I just discovered the tax credits - how amazing! For 2010, the maximum credit is $12,170. Also, many states have tax credits, too. In CA, we'd be eligible for another $3000 credit. So, over $15,000 in tax credits. That's amazing. So many times we'd worried that we could never afford it, but these credits would put it within our reach. Just thought I'd pass the information along to others who might worry about the costs.
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Post by kjb96a on May 8, 2010 20:37:51 GMT -5
We adopted Canaan last year (base $14K) but our tax credit was only $1500. Is there something extra you have to fill out? Or is that only in CA?
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Post by candace on May 9, 2010 1:15:16 GMT -5
I'm not sure. I only read preliminary things online. The federal credit is $12,170, which would be in all states. Here's the page I read earlier: www.lifelineadoption.org/templates/cuslifeline/details.asp?id=26708&PID=130221Some states also have tax credits. In CA, it's around $3000. Each state is different, of course. You can google your own home state. I just googled "California adoption tax credit." I found this excerpt helpful: For example: John and Jane Doe adopt a child in 2004. John and Jane incur $15,000 in eligible adoption expenses. In 2004 their tax liability on their Form 1040 was $11,000, and they had $10,000 withheld from their paychecks during the year. In a normal year without the adoption tax credit they would expect to pay $1,000 to the Federal government before April 15; however, with the adoption tax credit they are permitted to take because of the adoption of their child, the tax liability is reduced to $40, which means they will get a refund of tax withheld of $9,960. Instead of paying the government in taxes, their tax dollars where used towards their adoption.The way this tax credit works is that it won't pay out more than your tax liability for that year, but it can be carried forward for 5 years. HTH!
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Post by kjb96a on May 9, 2010 23:56:43 GMT -5
Thanks!
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