[buccasmom]

Hi,

I have gotten so much useful advice from these boards since sighning up. Thanks everyone!

My husband and I are currently waiting for a match, and I have been on an all-out search for ways to help with the costs of adoption. Our annual income is very low, but we both have a heart for adoption. Does anyone have any suggestions or names of groups that offer grants? Any ideas would be great!!! You can email me at momof3@midmaine.com.

Thanks!

[joymom]

Can you find an adoption situation for around $10k? We relied on the adoption tax credit with our last adoption (we borrowed money from my mom till we got our refund). Most adoption expenses count for the credit - home study, agency/attorney fees, etc.

[buccasmom]

Dear Joymom,

Thanks for replying to my question. Yes, I am quite sure we can find a situation that is around 10K. Could you explain to me a little more about how the adoption tax credit works? I didn't realize it was actually refunded to you! Thanks!

[joymom]

In my humble opinion, this is about the best thing our federal government has come up with in a long time!

We, too, were amazed that it's a CREDIT, not a deduction. In other words, its CASH MONEY that you get back (dollar for dollar, not a percentage). Next year when you do your taxes, you fill out a special "adoption tax credit" form and get credit for adoption expenses (homestudy costs, post-placement visits, agency fees, etc). The max is $10,000 per adoption (provided you make less than $150,000 a year, above this they adjust it). The adoption doesn't even need to be final, and you can carry "extra" credit over into the next year. (We had this happen because we didn't pay enough tax to take the full credit in one year. That is, if you didn't PAY $10k in taxes, you will receive back what you did pay in taxes. You can claim the rest the next year.) I think you can even claim previous expenses if the adoption isn't final.

I think this is sounding clear as MUD...sorry. If you call the IRS they can send you Publication 968 (an agency just sent this to us) and is explains some of this. Hope this helped!

[buccasmom]

Thanks, joymom! I understand it a little better now! Thanks!