[Parodess]

Has anyone who's adopted been part of an S Corporation? If so, how did you decide how much to give yourself as an employee benefit? (And how much did you give yourself, if you don't mind me asking?)

I have a feeling it's not kosher to reimburse all expenses (or all but what the tax credit would cover), but how do you decide what's a fair amount?

Thanks in advance to anyone who has input on this. Please PM me if you don't feel comfortable posting numbers on the thread.

[BrandyHagz]

Adoption friendly Workplace

You can get some good info on what Companies in your state (and others) offer their employees...

[susanandgrace]

We too are in the same situation. We have to talk to our accountant.

The max (from what I understand) that the employee can give is 10K (of course double check).

[reynstev]

I would donate up to the exclusion amount which is $10,000 or a little over and also take the credit. I can't remeber if the exclusion is indexed to inflation.

If you have an accoutant definitely discuss this with him, especially if do not typically pay yourself a salary from the S-Corp and only take a distribution each year.

[mykidrules]

I, too, am in the same boat. I just called my accountant to find out specifics. I live in Ohio. I will reply as soon as he gives me numbers and advice. Thanks for bringing this to my attention. It is a great tax idea.

Sam

[Parodess]

Thanks, everyone for the input. Brandy, thanks for the link! It's good to have a starting point for comparisons.

This is a tough situation because I don't have concrete numbers, and we aren't impartial decision-makers. We'll talk to our accountant, and I'll check out the site Brandy listed, and see what we find out!

[maxine10018]

My understanding is that anything you get from the S Corp is considered a taxable benefit and since all revenue from an S Corp transfers to your personal taxes, it's a wash with tax savings. Also, the policy must be available to all employees.

Double check with your accountant.

Karen