Wednesday, April 13, 2011

Family Scores $54,000 Tax Refund From Adoptions. Will You?

Posted by Madeline Holler on April 1st, 2011 at 5:34 pm
StrollerDerby

Sometimes, good news comes out of the tax prep office.

David and Thelma Ward could hardly believe it when their HR Block tax preparer called to say they’d be getting a $54,000 tax refund this year.

Yes, that many zeros. And math was checked countless times.

The one-time windfall for the family is attributed to a change in the tax law this year. Since 1997, families who adopt have been eligible for a one-time, $13,170 tax credit per child. Over the past three years through foster care, the Wards added five more kids to their family, which already included seven other children.

What makes this year different, though, is a change in the way the tax credit is defined: it’s now a refundable tax credit. Before, you could only fully benefit from a tax credit if you owed more than the credit. The credits simply offset what you owed in taxes. Staring this year, the adoption tax credit is refundable, meaning it not only offsets the amount you owe but you get the difference in cash. FULL STORY

Just think how great of a Real Parent you could be with $13,170 a year per kid.

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