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Adoption tax credit

emn'saremn'sar Posts: 393
edited November -1 in Parenting and Life
Who has claimed the adoption credit as a same sex couple? Did you use a LGBT friendly accountant or your regular accountant? Did you experience any red tape or get audited? Any and all info appreciated. We have been rushing through the adoption process since July, (not easy), to complete it by the end of the year in order to claim the credit. It is not a guarantee that it will be extended past that time...our attorney has indicated that many couples are facing denials and audits even though the law states we are entitled to it. I have read many articles with different outcomes. Some people have no problem, others get the 3rd degree or worse, out and out denial, resulting in penalties and interest.
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Avery 2.5 years and Julian 4.5 months

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    A&JA&J Posts: 1,825
    edited November -1
    Long story, but basically we filed for it ourselves and initially all seemed fine and well. We were audited, had to pay a fee and interest. After going back and forth and resubmitting paperwork they gave us a very small portion of the tax credit. We prepared and filed all documents correctly, appropriately, and in due time.
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    cptncrbcptncrb Posts: 113
    edited November -1
    After our second parent adoption, my DP did claim the adoption expenses for credit. My accountant who has been our accountant for years took a few minutes to wrap his head around it, but had no problem filing the claim, but wasn't sure if we would run into problems. We took the risk, because DP would have had to pay a significant amount of taxes because of her income. Well she got audited, then got denied for the credit. We consulted our lawyer and she helped us by telling us what to include in the wording of the letter, references to a law, but it escapes me now. And after some annoyances of faxing and refaxing receipts and paperwork, she recieved the refund due to her as well as interest. So, yes, we were able to get the credit for the adoption, but it was a several month process. She only just got the refund last month.
    Cina, Kim, Mark & Jackson
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    ncmomstobencmomstobe Posts: 549
    edited November -1
    DP filed herself, got audited, but eventually got the money. By eventually, I mean that it was almost a year, if I remember correctly.
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    fischfisch Posts: 570 ✭✭
    edited November -1
    We did, we have an accountant, a very good one. Had no problems.
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    emn'saremn'sar Posts: 393
    edited November -1
    thanks for all the input. i have decided to contact my employer and see if it isn't too late to apply for adoption assistance. it is a benefit of ours that our attorney initially said i wouldn't necessarily need to use because of the tax credit. now that i see all these issues, i think it might just be easier...more to come!
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    Avery 2.5 years and Julian 4.5 months
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    EMG_RELEMG_REL Posts: 2,379
    edited November -1
    You can look back in my "posted topics" to see our experience. My accountant was confused at first because he had never done such a thing, but it turned out fine. I got the money without a problem (and without an audit).
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    melmel Posts: 793
    edited December 2012
    Isn't this the year that the adoption credit can only be claimed if you owe taxes at the end of the year?

    ETA: Yes, I see it is no longer refundable.
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    indigoscotindigoscot Posts: 246
    edited November -1
    Mel is correct. If you owe taxes you can use the adoption credit to assist with your liability. Otherwise it can be "banked" for 5 years to help with any taxes you owe over that time period. I doubt we will be able to claim it this year unless our accountant can figure a way to make it work. I expect we'll go ahead and do it though since President Obama has it on his fiscal budget for 2013 to make it permanently refundable.

    g
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    melmel Posts: 793
    edited December 2012
    Does that mean adoptions completed in 2013 will be refundable? Last I saw, it looked like the credit would only be available for adoption of special needs children. Do you know if other adoptions are included in his budget?
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    sugarprincesssugarprincess Posts: 629
    edited November -1
    I just sent all our paperwork in from our failed adoption which I realize is different from your situation. Anyhoo, the credit is no longer available since they have changed the laws. If you had expenses in the year 2012 you won't get the refund. My tax lady is trying to get the info for how it works this year. When I get any I will let you know.
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