The IRS just issued guidance on the expanded Adoption Credit available for Tax Year 2010. Here's the link:
http://www.irs.gov/newsroom/article/0,,id=228301,00.html
In a nutshell the credit has been increased to $13,170 per child and makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. The kicker is that in addition to filing form 8839 with your return, eligible taxpayers must include with their 2010 tax returns one or more adoption-related documents. I haven't yet found what qualifies as an adoption related document. The documentation requirements mean that taxpayers claiming the credit will have to file paper tax returns. It normally then takes 6 to 8 weeks to get a refund claimed on a complete and accurate paper return. The good news is you get all your money in one year; the bad news is you have to wait a little longer to get it.
1 comment:
very interesting! So how does that work when we got some of our money last year? Do we get all the rest this year? (or only if 2010 is your first year to claim it?) That is a huge bummer it takes longer to get it back - must get taxes done sooner this year!
Thanks for the info!
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