Thursday, May 19, 2011

Info from NACAC about the Tax Credit

Adoption Tax Credit Update

The good news: We have finally begun to hear from people who are receiving their full refunds after the IRS reviewed the adoption tax credit. It’s great to see that the process is beginning to work.

The not-so-good news: Some people are being turned down improperly, often because their adoption subsidy agreement does not specifically state that the child has special needs. If you have been turned down, we recommend that you write back, include the adoption subsidy agreement, and explain that a child cannot receive adoption subsidy/adoption assistance unless the state has determined the child has special needs. Therefore, your adoption subsidy/adoption assistance agreement is documentation of the special needs adoption. If you were asked to verify expenses, you can add that because it is a special needs adoption, you are are not required to have or verify expenses. We are working with the IRS to ensure that examiners understand this, and soon hope to be able to share written clarification issued by the IRS.

Although NACAC cannot help speed up the process, we can help if you were improperly denied the credit. Please contact us at or call us at 651-644-3036.


Anonymous said...

we filed in early Feb, was audited in late Feb, received a partial return, then was sent a letter stating that our case needed to be reviewed. Sent a copy of everything requested. Packet was received and we would hear back within 30 days. Called after 45 and was told we would be 'got to'. Just got another letter last week stating that we would hear from them by mid June. It's not like they can just say no (lol)

Celticqueen said...

I filed in late January then filed an amendment in late Feb. early March and just last week (May 18) received my full refund. Fortunately, i had all the proper documents and my adoption papers specifially stated my adoptions were "special needs" Praise be to God!