The following comes from the IRS Newswire:
IR-2010-100, Sept. 29, 2010
WASHINGTON — The Internal Revenue Service today issued guidance on the expanded adoption credit included in the Affordable Care Act. The IRS also released a draft version of the form that eligible taxpayers will use to claim the newly-expanded adoption credit on 2010 tax returns filed next year. Continue reading
This is actually a question I have posed to myself — tongue in cheek — because we have had five of our children placed with us during the days immediately before Christmas and have wrestled with the same dilemma each time. The problem isn’t whether we should celebrate the birth of Christ, but whether we should invest in the economic side of how we do it in America. Tree, gifts, spiral ham and sparkling cider — we are not talking about gross excess here, but the simple things that are a traditional part of our culture. It’s the question of spending money that does not absolutely have to be spent while we are facing the inevitable reality of significant bills related to adoption.
With the joy of each new child, we have to work through this issue to a place where we are comfortable balancing everyday life with the need to save for those looming bills. Five separate times my Christmas list has only had two items on it: A new baby and a new Bible. Continue reading
Family Legacies, Inc. is a 501(c)(3) charitable nonprofit organization. From Family Legacies’ website: “It is the purpose of Family Legacies, Inc. to help make adoption a reality for prospective parents who do not have the funds to pay for the total cost of the adoption.”
According to Brent Nelson, Family Legacies’ Development Director, all gifts to Family Legacies are tax deductible and will multiply over and over for years to come. For example, a $5,000 gift effectively helps 8 orphans to be adopted in a 10 year period. Think about it: $5,000 becomes $40,000 in 10 years. And that same original gift will continue to be used over and over after 10 years. What a great investment!
On a side note, I’ve interacted with Brent Nelson several times over the past many months. I don’t know of anyone who is more passionate about God’s heart for orphans. In a recent newsletter Brent wrote: Continue reading
Employers step up with benefits as adoption becomes more difficult
September 2, 2007
BY SUE SCHELLENBARGER The Wall Street Journal
Adopting a child from overseas has never been easy. But new restrictions on overseas adoptions have made the process much tougher, causing added stress and job disruptions for would-be parents.
The changes are demanding more patience on the part of adoptive parents, better planning and communication at work with bosses and coworkers, and more flexibility on the part of employers. Fortunately for some, the shift coincides with a sharp increase in adoption benefits by some employers, including paid leave and reimbursement for costs.
Flexibility at work has always been essential for adoptive parents. In anticipation of a Chinese adoption in 2004, Jean Walker, a marketing manager, shifted to a new job with her employer, Verizon Communications in New York, that required less travel. She laid plans with her boss for a substitute to cover her three-month adoption leave.
Then, she waited — for the call that a child was ready for her in a Chinese orphanage. It came within weeks, triggering a new flurry of paperwork, planning and leave-taking, Walker says. That adoption took about a year.
But now, many of the most popular countries for U.S. adoptions, such as China, Russia, Ukraine and South Korea, are tightening restrictions or extending the waiting or processing periods. Continue reading
Taken from The Complete Adoption Book by Laura Beauvais-Godwin.
“The adoption tax credit is perhaps the greatest financial incentive for adoptive families. You can now earn up to $10,160 in tax credit on your federal taxes for each child who you adopt. A tax credit is not the same as a tax deduction; a credit is far more generous.
“Qualified expenses include adoption fees, court costs, attorney’s fees, and other adoption-related expenses such as travel. For example, if you paid $15,000 in adoption expenses in 2005, the adoption was finalized that year, and you paid $5,000 in federal income tax for 2005, then when you file your 2005 taxes, you will receive a $5,000 refund. The following year, you can receive a refund up to the total amount you paid in taxes until you reach the tax credit total of $10, 160. If you adopt two children in one year, then you are eligible for a $20,320 tax credit”(p. 338).
How to Take a Credit Continue reading
Justin Taylor writes:
One of the few posts that I repeat and supplement on this site is a list of resources that might help couples to finance an adoption. The reason is that adoptions are very expensive–often $15,000+ for a domestic adoption and $25,000+ for an international adoption; therefore finances are a major factor in preventing couples from adopting.
Here are some resources that may be of assistance: Continue reading