1. Beginning in tax year 2010 the credit is refundable, meaning that you can get it even if you owe no tax.
2. For tax year 2010 you must file a paper tax return and Form 8839, Qualified Adoption Expenses, to get the credit and you must attach documents supporting the adoption.
3. Documents may include a final adoption decree, placement agreement from an authorized agency, court documents and the state’s determination for special needs children.
4. Qualified adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child. These expenses may include adoption fees, court costs, attorney fees and travel expenses.
5. An eligible child must be under 18 years old, or physically or mentally incapable of caring for himself or herself.
6. If your modified adjusted gross income is more than $182,520, your credit is reduced. If your modified AGI is $222,520 or more, you cannot take the credit.
7. Taxpayers claiming the credit will still be able to use IRS Free File to prepare their returns, but the returns must be printed and mailed to the IRS, along with all required documentation.
From: IRS Tax Tip 2011-34
David A. Grooters is a Mason City attorney practicing in areas including adoption law with the law firm of Pappajohn, Shriver, Eide & Nielsen P.C. He can be reached at his office at 103 East State Street, Suite 800, Mason City, Iowa, via phone at (641) 423-4264, (641) 423-3145 (fax), or grooters@pappajohnlaw.com.
The firm’s website is: www.pappajohnlaw.com||
