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Tax Credit Consulting: Adoption Burlington IA

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

Dirk M. Dixon (RFC®), EA
(515) 285-5546
8033 University Blvd
Clive, IA
Company
Baker & Associates, LLP
Qualifications
Education: Bachelors of Business Administration with an emphasis in Finance from Grand View College 1997.
Years of Experience: 15
Membership
IARFC, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Business Coach, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

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Craig Adamson
1000 Lindale Drive
Marion, IA
Company
Title: President
Company: Adamson Financial Planning
Type
Investment Advisor Rep: Yes
Education
BS Iowa State University 1996
Years Experience
Years Experience: 14
Service
Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,401k Rollover From Employer,Income for Life/ Preserve Principal,Medicare Planning,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Plan

Data Provided by:
Steve R Smith Tax & Accounting
(515) 265-8369
2053 E Grand Ave
Des Moines, IA

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JK Harris&Company Tax Representation Firm-Call Now
(800) 621-0536
330 NW Bank Tower, 2550 Middle Rd., Suite 27
Bettendorf, IA

Data Provided by:
Zimmer & Co
(319) 291-7216
535 Western Ave
Waterloo, IA

Data Provided by:
Mr. Kenneth E. Lawson (RFC®), CHFC, CLU, LUTCF
(563) 359-1688
2435 Kimberly Rd Ste 300S
Bettendorf, IA
Company
Client 1st Wealth Management, Inc.
Qualifications
Years of Experience: 44
Membership
IARFC, SFSP
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Bill Elson
3705 Grand Avenue
Des Moines, IA
Company
Company: Spectrum Financial Services
Service
Hourly Financial Planning Engagements,Fee Only Portfolio Management,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Medicaid,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Medicare Planning,Health Care Insurance,Retirement Planning

Data Provided by:
Sanders Tax Svc
(712) 256-8290
1417 W Broadway
Council Bluffs, IA

Data Provided by:
AMG TAX & CONSULTING
(515) 221-1100
1025 ASHWORTH RD
WEST DES MOINES, IA
 
Army Post Accounting
(515) 285-5544
1600 SW Army Post Rd
Des Moines, IA
 
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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:

  • Qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to and for which the principal purpose is the legal adoption of an eligible child.
  • An eligible child must be under 18 years old, or be physically or mentally incapable of caring for himself or herself.
  • The adoption credit or exclusion cannot be taken for a child who is not a United States citizen or resident unless the adoption becomes final.

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...

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