[DianeS]

And not at all in the way anyone expected!

A one-year extension is tacked on to the end of the health care bill that was just passed and signed! LOL!

Now, I'm all for extending the adoption tax credit in any way possible, but it was amusing to find it done in that way on that bill.

From what I can understand so far:
1 - The credit has been extended to December 31, 2011 - for a single year from its original end date. (So keep writing to your congress people! We need it extended longer!)

2 - It increases the amount to $13,170 for either the year 2010 or 2011, I'm still wading through the technicalese. It's increased by a little more than inflation would have increased it, but every little bit helps! (remember, I don't know yet whether that's for 2010 or 2011.)

3 - It's now a refundable credit. That means that some taxpayers will be able to receive more from the IRS than they paid in taxes that year. The benefit of it being a refundable credit disappears at certain income levels but I don't yet know what those are for this credit. But those of you who used to get nothing back from the credit because you don't have enough income may now benefit from it.

I have not yet created the text of the law as it now stands. The amendments that were passed as part of this health care bill contained more than two full pages of

(L) Section 1016(a)(26) is amended by striking ‘‘23(g)’’ and inserting ‘‘36C(g)’’.
(M) Section 1400C(d) of such Code is amended by striking ‘‘23,’’.
(N) Section 6211(b)(4)(A) of such Code is amended by inserting ‘‘36C,’’ before ‘‘53(e)’’.

and similar messy substitutions. It will take a while to untangle it.

So, while I'm sure that what I have posted so far is the truth, there is still the possibility I've misunderstood some part of it. This isn't w3ritten as gospel, it's written as a heads-up. More information should be available as experts read and interpret it.

[HopefulMom2bee]

THAT'S AMAZING!!! I just got goosebumps as random as that seems! Thanks for letting us know and I'll continue to spread the word to everyone I know!

[HopefulMom2bee]

Where did you find this info? I would like to read up on it and be able to pass it on to others.

[DianeS]

Glad you asked, I had intended to post it.

The bill that the President signed is HR 3590.

The full text of the bill is here:
http://frwebgate.access.gpo.gov/cgi-...0enr. txt.pdf

The section you want is:
SEC. 10909. EXPANSION OF ADOPTION CREDIT AND ADOPTION ASSISTANCE PROGRAMS.

It starts on the bottom of page 903 (of the 906 page bill).

[txwannabemom]

Diane,
What sort of Tax prep person would you reccommend to someone looking to utilize the tax credit? I mean will the locla H&R block be adaquately informed about it to do my taxes? Or should I be looking for someone more specialized?

Thanks!

[DianeS]

In my opinion, the adoption tax credit is a pretty simple and straightforward credit for the majority of people. I'm honestly astonished that tax preparers get it wrong as often as they do. I can only think that perhaps it's a "minor" credit (based on the number of people who use it), and they are experts on the more major credits instead and this one just slips through the cracks.

That said, I am *not* surprised that the seasonal workers get it wrong. All sorts of tax prep offices advertise every fall for people to go through their "tax college" and prepare themselves to complete tax returns for others in the spring. Those people have only gone through about 4-6 months of once- or twice-a-week classes. Of course they can't possibly know everything with such a short time to learn it.

If you get a regular employee (not seasonal) at one of the tax preparation places, and if you ask to have each section of your tax return explained to you using your real numbers, and if you post here what you were told about your adoption tax credit part - then you ought to be covered.

The regular year-round preparers have had more education, and usually know more, and have access to more detailed info. When your return is explained to you, you ought to be able to catch some popular misconceptions about the credit. And when you post here what you were told about the adoption credit part, we'll dissect it and tell you whether it was right or not, with references to the applicable IRS instructions.

I hope that helps you!

[jcm]

Thanks Diane for posting this...you might have made my week!

[tinktink]

Great news!!!!!!

[hopingforachild]

Thanks DianeS for keeping us all educated. I appreciate it!!!