Tax Credit Consulting: Adoption Bear DE
New Castle, DE
Life Strategies, LLC
Years of Experience: 8
IARFC, FPA, SFSP
Invoice, Estate Planning, Retirement Planning, Tax Planning, Charitable Planning, Asset Protection, Compensation Plans
Diversified Financial Consultants
Years of Experience: 34
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Asset Protection, Compensation Plans
New Castle, DE
Title: Certified Financial Planner"
Company: Morgan Stanley Smith Barney
Years Experience: 8
Captive Insurance,Life Settlements,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Fee Only Portfolio Management,Wealth Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rol
Company: Curry Poole Group, LLC
Investment Advisor Rep: Yes
Registered Investor: Yes
Years Experience: 42
Pension for Highly Compensated Owners,Stock Market Alternative,Reverse Mortgage,Medicare Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Portfolio Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Man
New Castle, DE
Tax Credit Consulting: Adoption
Adoption Tax Credit
Many Americans pursue the adoption of children in lesser circumstances. This excellent moral choice comes with a financial benefit - the adoption tax credit.
You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. This includes a child with special needs. The adoption credit is an amount subtracted from your tax liability. At the time this page was created, the adoption tax credit was $10,390 per child, which applied to the 2004 tax regulations.
This is a huge financial benefit as a dollar for dollar reduction of the amount you owe the government is far more valuable than a measly tax deduction from your gross earnings.
The adoption tax credit is unique in that it can be claimed over multiple years. The adoption process is often a frustrating, lengthy one. If it takes two or three years, you can claim a credit in the amount of your expenses for each year so long as the total for the particular adoption doesn't exceed the $10,390 limit set by the IRS. Also, keep in mind you can only claim the adoption tax credit for actual expenses. Reimbursed expenses may not be claimed
To claim the adoption tax credit, you have to meet certain criteria:
An eligible child is also a child with special needs if he or she is a United States citizen or resident and a state determines that the child cannot or should not be returned to his or her parent's home and probably will not be adopted unless assistance is provided. Under certain circumstances, the amount of your qualified adoption expenses may be increased if you adopted an eligible child with special needs.
Unfortunately, the adoption tax credit for qualifying adoption expenses is each subject to a dollar limit and an income limit.
Under the dollar limit, the amount of your adoption credit is limited to the dollar limit for that year for each effort to adopt an eligible child. For example, if we assume the dollar limit for the year is $10,000 and you paid $9,000 in qualifying adoption expenses for a final adoption, you may be able to claim a credit of up to $9,000.
The dollar limit for a particular year must be reduced by the amount of qualifying expenses taken into account in previous years for the same adoption effort.
The income limit on the adoption credit is based on your modified adjusted gross income (modified AGI). If your modified AGI is below the begi...