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Adoption Subsidy - 1099-Misc

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    Adoption Subsidy - 1099-Misc

    Client received a 1099-Misc for an Adoption Subsidy (from State of Indiana). Not seeing much in my research yet. The 1099-Misc shows $4,500 in Box 7 Nonemployee Compensation. Not sure how to report on the 1040. It appears that the $4,500 may not be taxable from some initial research. Can anyone point me to more specific information?

    #2
    Don’t know where you have researched but hopefully this is a start:

    https://www.irs.gov/taxtopics/tc607

    https://www.irs.gov/newsroom/nine-fa...doption-credit
    Always cite your source for support to defend your opinion

    Comment


      #3
      Did the client work for the State of Indiana? Was this a subsidy due to a hard-to-place child in foster care or a ward of the state? It may not be taxable, see the above references. In any event, it should NOT have been reported in Box 7, but reported as Other Income, Box 3, *IMO.

      Comment


        #4
        Also, see Form 8839 and instructions.

        Comment


          #5
          As you may have the Indiana info., if not, see below:

          Indiana State Adoption Assistance Program

          100 N Senate Ave
          Room N848 MS48
          Indianapolis, IN 46204
          317-234-5841
          Jennifer.Haselwander@dcs.in.gov
          http://www.in.gov/dcs/

          Always cite your source for support to defend your opinion

          Comment

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