[kinnj]

Hi all. We adopted our beautuful son in december of last year. We are able to take him as a deduction for last year, but we are also able to take the adoption tax credit for a 2003 failed adoption. Has anyone had any experience with filing for the adoption tax credit or had any luck. I called the irs and I get so many different answers dependin on who you talk to. It is very fustrating. I am still waiting for his ATIN number so I have some time, but I am so nervous the irs is going to send my return back saying I filed wrong.
ANy help would be appreciated.
Thanks
KINNJ

[icunurse]

We were lucky in that we paid almost all of our expenses in 2004 and we adopted and finalized in the same year, so paperwork was more streamlined. We did our return on TurboTax (online, didn't buy the software)-they ask questions for the adoption credit. Otherwise, maybe go to a CPA just to be on the safe side. Sorry I can't be more help. Good luck!

[mlbsands]

I agree with ICU nurse.. use Turbo Tax online and they walk you thru it.. I even learned that my state has a small credit as well.. I am all ready to file.. just need his SSN.. (I just got his birth certificate yesterday so I am off to get the SSN today!!!)

[MrsSmith]

Hi -

We also used TurboTax (bought the software, filed electronically) when we did our taxes for the year in which we used the Adoption Tax Credit. It was very easy, from what I recall - they do prompt you for all the info. We had no problems and got our refund in record time. (Who'd have thought that the IRS could actually send money BACK quickly, hee hee! )

Oh - we had adoption expenses from 2 failed adoptions, the starting of the process to do an international adoption AND our DD's adoption that we applied towards the ATC. Boy, did it make a difference to have that credit too!!

Good luck!

Cheers!
Heather

[Bella's_auntie]

I know this may sound strange, but I didn't realize you could use the ATC toward failed adoptions? Is that correct.

Can you use the ATC even if you have not had a successful adotption that year?


Kelly

[carriewoman]

We just filed using the ATC for a failed adoption last year also. The child was in the foster system, and they wouldn't (couldn't) give us his social security # because he was turned over to adoptions, and that info was confidential. So, we ended up using the seperate form (for if you don't have the ATIN) and we should get taxes back within 4-6 weeks. We couldn't use the online turbo tax because it only worked if you did have the ATIN, so we printed out the forms and sent it in snail mail.
On the second sheet we had to file with it (because no ATIN) we had to provide the information on our attourney, and the case worker related to the case as proof that we did attempt adoption and it did fail.

Hope that helps,
Carrie :-)

[kinnj]

Thanks you guys.
My tax preparer did use turbo tax, and she said she got no errors. I have to mail mine in also because we do not have a ss number for our failed adoption.
I guess I am just nervous since it is such a large refund and I don't want to have it delayed by just not doing something stupid.
I think I will send in the documentation from the agency stating that we did attempt to adopt and it did end up as a disruption.
I am waiting for the ATIN number so that I can claim my son whom we successfully adoted last year but won't be final till this year.
Any other help would be grateful. This is such a great credit but very confusing.
My lawyer seems to think that I will be able to take the full credit for both attempt seperately since I cannot apply for the credit for my son till 2005( the year the adotion is final).
Thanks so much again.
KINNJ

[marclr911]

We claimed expenses from our first adopted daughter in 2000 and never used an ATIN.. ?

Anyone know how long the ATIN takes to get?

[chrisandaaron]

This may sound silly, but someone told me that we need to end up owing on our taxes to use the credit to "reduce our tax liability." My fear is that if I lower our witholding too much, I will end up owing a bunch in the end (even with the credit). I typed it into my turbo tax this year as an experiment and it appeared that I would get at least part of the credit even though I was already getting a refund. Can anyone clear this up for me?

Thanks

[looking2adopt1]

Our son joined our family in October of 2004. While we were getting ready to do our taxes I read about the ATIN. After I read about how long it would take to receive the ATIN (4-8 weeks) I decided to go to the SS Office and see about getting a SS# for our son. The bmom gave us the original birth certificate so I was able to use that and get a ss# for our son. I had to show the BC, court papers stating termination of parental rights, and court papers naming dh and I as having custody from a licensed agency. Since I had all that, they put in paperwork and I received his SS card in ONE WEEK!!! They told us when the adoption is finalized in two months that we could go back and get a new ss card with his new name.

[sandymomof2]

The adoption tax credit is used to offset your total liability for the year, not just to offset a refund. Here are some examples (and in these I am going to assume that the credit is $10,000 but in reality it's slightly higher):

Let's say, after you do your taxes and check the table at the end of the book, it says your tax obligation is $15,000 (before figuring in the ATC).
- Scenario 1: you have already had $17,000 taken out by your employer(s) so without the credit you would get back $2,000, with the credit you will get back $12,000.
- Scenario 2: you have already had $8,000 taken out by your employer(s) so without the credit you would have to pay an additional $7,000 (ouch! ) but with the credit you will get back $3,000.

Instead, if after you do your taxes, the tax table says your tax obligation is less than $10,000, the ATC can be spread over more than 1 year and you can gnaw away at the $10,000 credit over some period of time - I'm not as familiar with this situation so can't really comment on this part.

Hope this helps!

Sandy

[kinnj]

the atin form said it takes 4-8 weeks.
KINNJ

[rastachris]

As I understand it, the ATC applies to finalized adoptions. So if your child was born last year (2004) but finalization is not until 2005 then the ATC will be applied to 2005 taxes.

Also, as I understand it, there is a minimum tax that we are all required to pay based on income. If the ATC brings the amount of taxes owed to below that minimum amount then that portion of the ATC rolls over to the next tax year. For instance, in our case, we will get back a substantial refund for 2004 so almost $4000 of our ATC will be applied to 2005 taxes. And our 2004 refund includes a portion of our 2003 ATC that rolled over.

I agree with other posters that either a tax prep software or a CPA will be your best bet for making sure things are done correctly.

Happy filing!

[chrisandaaron]

Thanks so much, that made it very clear! That is the way I have understood it and it seems to match with what the tax software shows. I don't know why this "attorney," told us differently.

Thanks,
Chris