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#1
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Reimbursement or Credit???
When we started the adoption process we were told the adoption expenses were reimbursement at tax time (if you had proof of expenses,etc). But as I read more, it sounds like it is not a straight reimbursement, but more like a credit. So we normally get a fairly large refund check each year, would this check be bigger when we claim the adoption expenses? If anyone had insight that would be great - will help in budget planning.
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#2
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Here in Washington we are reimbursed fro up to $1500.00for adoption expenses. That was a straight reimbursement, after finalizing adoptions we turned in copies of reciepts to adoption support and got our money back. There is also the federal adoption credit, which is a different thing entirely. When you adopt a "special needs" child from the foster system you are allowed the full $10,000. tax credit. It can be carried over five years. So, if you do not use the full credit in one year the remainder can be carried over to subsequent years up to five years. If in five years you have not used the full credit you lose tha remainder.
And yes, we get VERY substantial tax refunds now. Last year, not only were we carrying forward on E's adoption credit, we had finalized another adotpion in 06. Figure we will be getting good refunds for at least another five or six years (in process of one more adoption).
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J, bio son: born Feb '96 T, adopted daughter: born July '96, adoption finalized Dec '06 E adopted son: born Sept '99, adopted November '05 C, foster daughter, with us for 10 months in our home, with us forever in our hearts born Sept '03, placed with us August '07, moved late June '08 [I"]Jeremiah 29:11for I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future.[/color][/i] |
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