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MaryKWimsett
on
February 15, 2013
The Adoption Tax Credit was recently made permanent by the legislation Congress passed to avoid the “fiscal cliff.” Congress can still choose to alter the credit in the future with legislation but the credit no longer has to be renewed and revisited each year. The credit applies to ALL adoptions (even foreign re-adoptions) except for Step-Parent adoptions.
The maximum credit is $12,970 and the credit begins to phase out for families with incomes above $194, 580. It phases out completely for families who make more than $234,580. The credit is a dollar for dollar reduction in the amount of federal taxes owed.
The credit is no longer refundable. This means that only families who have federal income tax liability will be able to use it. Families should still claim the credit because the credit can carry forward and families have up to five years to use the credit.
Families who adopt special needs children still qualify for the full amount of the credit and do not need to document adoption expenses. A special needs determination is still required. Children adopted through the foster care system are almost always deemed special needs even if the child has no discernable true special needs such as a mental or physical handicap. Children who are handicapped actually do not automatically qualify for the special needs determination. There must be an active determination by the Department of Children and Families that the child is considered special needs.
The form is still Form 8839, http://www.irs.gov/pub/irs-pdf/f8839.pdf. Adoptive families should consult with a tax professional to ensure that their family receives the maximum benefit from the credit.
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MaryKWimsett
on
October 3, 2011
Where to Start? Part 2
Adoptive Families often find the beginning of the adoption process overwhelming and intimidating. If you have experienced infertility, it is very important that you first grieve this loss sufficiently before jumping into an adoption. The next step is to gather information about adoption so that you can develop an adoption plan that fits your needs and desires for your family.
There is an abundance of information about adoptions available on the internet. A good place to start is www.creatingafamily.org. Creating a Family is a non-profit that provides education and resources about infertility and adoption. The Executive Director, Dawn Davenport, regularly blogs on adoption issues and her posts are interesting and informative.
If you prefer a book, there are hundreds, if not thousands, of great options. I would start by spending an afternoon at your local library browsing the adoption section. I found the “Adoption Nation” by Adam Pertman very helpful. Pertman provides an overview of the current state of adoption and details the pros and cons associated with the different types of adoptions. Scott Simon’s “In Praise of Adoption,” which details the adoption of his daughter from China, is one of my all time favorite books. Simon’s elegant prose describes his adoption experience with frank honesty and emotion.
One of the services that the Law Office of Mary K. Wimsett can provide is a complete overview of the many options and variables associated with adoption. As I stated last week in my blog to birth mothers, it can be overwhelming at the beginning of your journey, but it is absolutely worth it.
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MaryKWimsett
on
September 27, 2011
Many birth mothers who contact me begin our conversation by stating, “I just didn’t know where to begin.” Thanks to the Internet and the relatively new but increasingly frequent appearance of adoption in our popular culture, adoption is now part of our regular discourse and there is an abundance of information available. Unfortunately, there is so much information that it can be difficult to decide where to begin to learn about the process. Selecting the type of adoption you wish to pursue is the first step as this will allow you to narrow the resources you utilize.
You should start thinking about whether you prefer for your adoption to be closed or open and if open, the degree of openness. Birth mothers should craft an adoption plan that fulfills their wishes for their child but is also something that fits their own needs. Birth mothers should start thinking about the type of family that they would like to match with—single parent; infertile couple; couple with children; mixed race couple; couple living in small town; family who has adopted before; etc. As you can imagine, there are hundreds of variables. And if you don’t know or don’t wish to know, that is perfectly fine too. Some birth mothers chose a closed adoption where they do not meet the family or know anything about them.
You should then decide if they would like to work with an agency, an attorney or select the family directly. Each adoption entity provides a different experience so it is important to interview the entity. You should ask questions about their experience, services provided and also ask to speak with another birth mother who has utilized their services.
Finally, you should start thinking about what support you will need during your pregnancy. Florida law allows the adoptive family to provide the birth mother with financial support related to the pregnancy throughout the pregnancy and 6 weeks post partum. This means that the family can assist you with rent, utilities, food, health care and other expenses related to the pregnancy.
My office can provide a complete overview of the many options and variables associated with adoption. While it can be overwhelming at the beginning of your journey, it will make your adoption much more fulfilling if you have explored your options thoroughly.
My next blog will feature the first steps for the adoptive family.
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MaryKWimsett
on
September 23, 2011
This month marks the year anniversary of the Florida District Court’s finding that the Florida ban on gay adoption is unconstitutional. Hundreds of children who were languishing in foster care have been adopted by gay families during this year. A Christian and conservative commentator explains her perspective on this issue,
florida-gay-adoption_b_972539.html?view=screen.
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MaryKWimsett
on
September 6, 2011
I receive a number of questions each week about the Adoption Tax Credit, hence the subject of this blog. The current Adoption Tax Credit will expire on December 31st, 2011. The current Adoption Tax Credit is fully refundable, which means that the taxpayer is fully reimbursed regardless of their tax liability. The amount of the current credit is $13,360 and the full amount is refundable if the child is special needs (almost all children adopted through Florida’s dependency system are considered special needs).
After December 31st, 2011, the Adoption Tax Credit will revert back to the pre-2010 credit amount (which was $12,170 but this number will be adjusted for inflation) and will NOT be refundable. This means, if you do not typically pay taxes, you will not receive the credit. This will remain in effect until December 31st, 2012.
There is an income limit with the credit decreasing for families with an adjusted gross income of $182,520 and the credit is completely eliminated for taxpayers with adjusted gross income of $222,520. You may be eligible to claim the credit even if your adoption does not become final. You must file a paper tax return, the IRS Form (8839) and documentation of the adoption. If you are adopting a special needs child, you must include the state’s determination of special needs.
There are no provisions for ANY Adoption Tax Credit after December 31st, 2012. This of course could change but it will require legislation.
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MaryKWimsett
on
March 16, 2011
Today’s Gainesville Sun contains an article on the 8th Judicial Circuit’s Guardian ad Litem Program (“GAL”). The article focuses on Kathy Donavan, the Program’s Assistant Circuit Director, who is an incredible asset to GAL and Florida. Kathy, like the hundreds of other GAL employees across the state, advocates for the best interest of children in dependency court. The GAL Program team consists of an attorney, a case coordinator/volunteer supervisor and a volunteer. The volunteers are the heart of the Program as they are the eyes and ears of the child.
As a former GAL attorney, I can attest without reservation that the GAL volunteer makes a significant and positive impact on the child they represent. There are not many volunteer opportunities that afford this opportunity. The GAL Program will be even more important and necessary if Governor Scott’s dramatic cuts to the Department of Children and Families are passed.
1002?Title=The-area-s-Guardian-Ad-Litem-Program-needs-new-volunteers
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MaryKWimsett
on
March 8, 2011
Many adoptive families raise the concern of potential drug use by birth mothers and the possible deleterious effects on the infant/child. Drugs are obviously potentially harmful. However, alcohol has proved to be much more damaging and with wide ranging long term negative effects.
Over the past few years, I have shared many articles on my FB feed about the dangers of fetal alcohol syndrome (FASD) and I am hopeful that these dangers are becoming a part of the discourse of proper pre-natal care given the increasing coverage of this issue in our national media.
This Canadian lecture breaks down the actual costs of FASD on individuals, families and society in general.
The costs are quite alarming, let alone the emotional and financial drain of caring for individuals with disabilites. This is a preventable disability-let’s prevent it!
question-3
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MaryKWimsett
on
February 10, 2011
f8839.pdf
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MaryKWimsett
on
February 9, 2011
I have received a number of calls in the past few weeks about the adoption tax credit. The IRS has yet to post the new form 1089 for 2010 but some have indicated that the new form should be ready by next week. As soon as it is available, I will post a link. Also, I have been told that turbo tax does not work for the credit but it will once the form is available (remember you will have to install the update). Remember, if you are receiving adoption subsidy from Florida, your child is considered special needs and you receive the FULL refund.
Dawn Davenport has a great page on her site with good information about this subject.
adoption-tax-credit.html?utm_content=mkwimsett%40adoptionlawfl.com&utm_source=VerticalResponse&utm_medium=Email&utm_term=http%3A%2F%2Fwww%2Ecreatingafamily%2Eorg%2Fadoption-resources%2Fadoption-tax-credit%2Ehtml&utm_campaign=Updates%20from%20Creating%20a%20Familycontent
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MaryKWimsett
on
February 7, 2011
From Howard Davidson at the ABA:
“I wanted my colleagues to know about an important provision of the Healthy, Hunger-Free Kids Act of 2010 (Public Law 111-296), enacted on 12/13/10. The Act, in Section 102, amends a key provision of the National School Lunch Act (42 USC 1758) to make any foster child categorically eligible, without the necessity of an application, for free school meals if their “care and placement is the responsibility (of an agency that administers a state IV-B or IV-E plan)” or if a “court has placed (the child) with a caretaker household”.
In a 1/31/11 guidance letter issued to child nutrition program directors across the country by Cynthia Long, director of the U.S. Department of Agriculture’s (DOA) child nutrition division, she indicated that all a local educational agency need receive is documentation from an appropriate state or local child welfare agency indicating that a child is a foster child under state responsibility or has been placed in a caretaker household by a court. These provisions, according to her letter, are effective as of 10/1/10.
As I read the new provisions of the law, in addition to all foster children placed by a child welfare agency being eligible (regardless of whether they are IV-E qualified), a child placed by a court into a kinship home or other “caretaker” household would also be eligible.
Ms. Long urges school systems to implement this as soon as possible, and not to wait until the next school year. DOA will be providing “prototype applications” for foster/kinship children, and supporting materials, to all state child nutrition programs in the near future, and they are working with HHS to notify state child welfare agencies of this legal development. Ms. Long’s letter also urges the nutrition directors to reach out to their child welfare agencies to develop or strengthen communications that will help facilitate local implementation.
Thanks to the First Lady (who powerfully advocated for Congress to pass this law before it adjourned), we have a new area of support – free nutritional food access at school for foster and kinship care children – that should now be the focus of attention of children’s attorneys, guardians ad litem, court appointed special advocates, and judges. At court hearings, the issue of whether children are actually accessing these free meals should be raised. A result should be an important step towards improving the well-being of abused and neglected children.
My colleagues here at the Center will stay on top of the implementation of this new law.”
-Howard Davidson
Director & Acting Director, Commission on Youth at Risk
ABA Center on Children and the Law
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