This will blow your mind..

[outwest]

AGI $32,400 refund (drum roll please) $36,300...

and it's right...

In 2010 the nonrefundable adoption credit for 3 special needs children carried forward for the last 4 years became refundable.

Similar to the FTHB credit though, it's going to be a paper return with additional documents required to be attached. And the final form 8839 instructions are still pending.

I wonder why the IRS thinks there may be a problem...

For my client though, this couldn't be better timing for the family.

Doug

[taxmom34]

wow

does that make you wish you were client? good job

[BP.]

carried forward for the last 4 years became refundable . . .

with additional documents required to be attached.

Does use of the carryforward require add'l doc? Still gotta paper file, I know. Draft inst are available now, but they specifically do not include the carryforward instr.

[outwest]

They sorta include..

the additional documentation requirements if you read below the "not final" note. The next page instructs us to include copies of the official adoption papers and the state certification of a special needs status for each child. I'm also going to include past years Form 8839's documenting the carry forward and what was used under the non refundable rules in the prior years.

Interesting note, these kids were "crack babies" and not only were the adoption records sealed, but names changed and new SSNs issued. That's also documentation I'm going to include along with a explanatory cover letter.

[oceanlovin'ea]

Oops!!

I did one with adoption credit carry forward for 8 adoptions and they adopted one in 2010. I only had them send in the paperwork for the latest one they adopted. I hope that doesn't delay their refund.

I didn't even think about sending in records for previous adoptions.

Linda, EA

[Burke]

Wow. They adopted 9 kids? Did they have any of their own as well? Gotta admire those people.

I guess.

[oceanlovin'ea]

none of their own

Well, actually they consider all of them theirs.
They started out by adopting her nephew at birth. Then the state gave them custody a boy they had removed from parents. But state never terminated parental rights so they just raised him.(side note - when he was 18 he changed his last name to theirs). When he was a teenager, they placed his younger brother and sister with them. same situation.

Then they became foster parents. They were willing to take special needs children. In 2005 they adopted 6 kids. In 2006 they adopted 3 more. In 2007 they adopted 1. In 2010 they adopted 1 more. They have 2 that they are adopting this year.
They said they are through now. That is it.

To top it off, she has home schooled all of them.

Great family.

Linda, EA

[BP.]

additional documentation requirements if you read below the "not final" note. The next page instructs us to include copies of the official adoption papers

Thanks!!

I did one with adoption credit carry forward . . .

I didn't even think about sending in records for previous adoptions.

I hope that doesn't delay their refund.

Apparently it will hold things up as the draft instructions say- "The IRS cannot process 2010 returns with Form 8839 attached if the proper documentation is not attached." I think I can catch mine before he mails it - fingers crossed!

Yes!! Just called client- kinda late in the evening, oh well, but he was at the grocery store, and hadn't mailed yet. Whew! Getting nearly $11,000.

[BHoffman]

It's like they're having a sale on special needs children.

Looking at one here. Adoption of (probably) special needs child in 2010 and waiting for documention from the State about that.

[kpangelinan]

AGI $32,400 refund (drum roll please) $36,300...

and it's right...

In 2010 the nonrefundable adoption credit for 3 special needs children carried forward for the last 4 years became refundable.

Similar to the FTHB credit though, it's going to be a paper return with additional documents required to be attached. And the final form 8839 instructions are still pending.

I wonder why the IRS thinks there may be a problem...

For my client though, this couldn't be better timing for the family.

Doug

Nice..........

[oceanlovin'ea]

client got partial refund

Okay...update on client with large adoption credit carry forward.

The refund he got was for this year's adoption credit and MWP credit. He sent the documentation in for the child they adopted this year.

On Where's my refund? it said for him to expect a letter and to send in the documentation asked for and then the return would be processed.

So they definitely wanted all the documentation. Hope it doesn't take too much longer.

Linda, EA