1.04.2013

Adoption Tax Credit Update

I want to thank all of you who wrote state representatives about saving the Adoption Tax Credit! After doing some research online and exchanging several email with my wonderful family member who is an accountant, I found the following information.

Although they did not make the credit refundable (credits that are "refundable" allow you to take a credit higher than the actual tax you owe), it is now a permanent credit, which means it won't have to be renewed every so often. While official figures will be released later by IRS, the projected maximum amount of the adoption credit for 2013 is estimated to be $12,770. All families, whether they adopt from foster care, privately or internationally, can carry their credit forward to other tax years if they don’t have enough tax liability to use it all at once. The key is, you must have tax liability to be eligibile for the Adoption Tax Credit.

For example, say you are eligible for a credit ofd $10,000, and you have $8,000 in tax, the adoption credit reduces your tax to $0, giving you back all of your withholdings. You then receive that credit in the form of a refund (assuming you do not owe anything). Then, the following year, I believe you can take the additional $2,000 leftover ($10,000 credit - $8,000 tax from previous year) and apply it to that year's taxes, assuming you have at least $2,000 in tax liability.

Clear as mud? I know it is confusing, but to make things more understandable, I recommend looking at your own previous year's federal tax forms. Apply the scenario I wrote above to your own situation, and hopefully it will make more sense! Comment with questions if you'd like.

I-800A Update

In my last adoption post, I mentioned that our I-800A application for immigration was sent to USCIS on Decemeber 20, 2012. We received a notice on December 31, 2012 (11th day of a 14 day wait) that USCIS received our application. It was fun to celebrate one more step on New Year's Eve! Now, sometime between January 10th and January 14th, we should receive the date and time of our biometric fingerprint appointment. We hope to walk in early anyway to see if they will take our fingerprints before our appointment time just to speed things along. We will see! I believe we will go to the Gateway Plaza Building at 10th and Meridian Street downtown Indy.

Hopefully next time I write we'll have that appointment time! In the meantime, we are gathering documents for our dossier. My latest project has been gathering 10 pictures with captions to send to China. That was actually a lot of fun because it gave me the chance to review all the things we did this past year. Ryan and I also applied for our passports on January 2, 2013. Mine was a renewal, but this is Ryan's first passport. I used an awesome website (http://portraitbooth.com/) to create FREE passport pictures for both of us. I paid 29 cents to print a 4x6 at Target, which gave us 6 passport pictures. If you get them taken at Walgreens, the post office, or places like that, you will pay $11-15 for just TWO pictures. Isn't that ridiculous? So anyway, use that website. It was super easy!

I have learned so much already in this process, and I keep learning something new each day. It's awesome to think that 2013 could very well be the year we meet our newest family member!
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