Adoptive Parents Can’t Miss This Tax Credit…
Making Adoption More Affordable
CENTRALIA, IL - The Adoption Tax Credit has been a financial boon for adoptive families in recent years. Whether the adoption was domestic, foreign, private, or through foster care it has helped many adoptive parents. The Adoption Tax Credit was officially enacted as a way to help make adoption more affordable, and taxpayers who adopt a child may qualify. Local tax expert, Becky Wilmoth offers some specifics.
“Taking the Adoption Tax Credit is important for two reasons,” Wilmoth explained. “First, it will help decrease your tax liability and will help you get more of your withholding back. The remainder of the credit that you do not use can be carried forward. Second, if the credit does become refundable again in the future the remainder will be refunded to you.”
For 2013 and forward, unless there are future legislation changes, the Adoption Tax Credit has been made permanent with the passing of the American Taxpayer Relief Act of 2012. Credit and income amounts are set to $12,970, but may be increased due to inflation.
“For those who haven’t taken advantage of this, tax returns for adoptions that were final between 2006 -2011 can now be amended. When amending your tax return the credit can be carried forward to the year 2010 & 2011 to claim the refundable credit. Depending on the year and the number of children you adopted, this can add up to a sizable refund. This is why it is so important for all adoptive parents to know about the Adoption Tax Credit,” Wilmoth said.
The Adoption Tax Credit is calculated on Form 8839 Qualified Adoption Expenses and included with your regular income tax return. You qualify if you adopted a child and paid out-of-pocket expenses relating to the adoption. The amount of the tax credit you qualify for is directly related to how much you spent on adoption-related expenses. Income can also be excluded as taxable through an employer-provided adoption benefit program.
“In 2011 we began to see a desperate need to help adoptive parents be made aware of the Adoption Tax Credit,” Wilmoth added. “We are a locally owned and operated professional tax accounting business owned by Alan and Jaime Newcomb. They are also foster and adoptive parents. Adoption and young people are very near to our hearts. We have since spoke at seminars and conferences trying to help other adoptive parents. Maybe you personally have not adopted a child, but someone you know has. If so, please don’t be afraid to ask them privately if they have taken this credit. Many times this credit affords adoptive parents the opportunity to adopt again.”
Becky Wilmoth is an IRS Registered Tax Return Preparer with Bills Tax Service of Centralia LLC. Bills Tax Service of Centralia has specialized in professional tax preparation, planning and representation, accounting services, and payroll services since 1977. Enrolled Agents, Registered Tax Return Preparers, and Accountants are available to help you. Give them a call (618) 532-7223, email firstname.lastname@example.org or visit their website
- Contact Information
- Becky Wilmoth
- Bills Tax Service of Centralia LLC
- (1) (618) 532-7223
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