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Thursday, April 14, 2011

Adoption Tax Refund ~ Really?

If you are an adoptive parent, at first excited that the former Adoption Tax Credit has been changed to an Adoption Tax Refund for tax years 2010 and 2011, by now you are probably scratching your head, yes?

Today, 60 days after filing our taxes, we received 'the letter.' You know the one ~ requesting receipts and supporting documents for adoption expenses claimed (even though we've submitted all documents previously requested and did not have to produce receipts for the ATC). Yes, that's the one.

Since I have far more important things to do than become distracted by this looming task, what with 5 prior adoptions and all, I decided to tackle the project tonight...and finish it tonight.
Let's see, where are those 2003 documents anyway?
After way too many a few hours, seven years' of documents were ready to stow, again.
I believe our response can be summed up in this...
...and tomorrow will go out in this. Perhaps to wait for the next letter, requesting supporting documentation for our supporting documentation?
And as much as I'd love to stay up the other two hours of this night, I must slip off to bed now...so I can go to work tomorrow and pay my taxes, of course.

15 comments:

  1. Ridiculous, is it not??? Seriously?? I've been following the forum on www.adoption.com to find out the most up to date info on what is going on this. I just mailed our stack of junk out yesterday. Here's hoping, right??

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  2. I really wish they would have been more specific with what they wanted. No where did it say anything about receipts. It would have made things so much easier in the beginning. What a let down to NOT get the refunds we have all so desperately been waiting for. We were going to "recycle" ours for Keliah's adoption, but aren't planning on it now until we physically have it.

    Hugs and prayers

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  3. Were having the same problem ! I wonder has anyone got their refund without all the hassle of looking up things from years and years ago.

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  4. Wow....we got a letter along with a partial refund telling us they would issue the remainder of our refund after they had more thoroughly reviewed our information and that they may require additional information. I guess that's what we have to look forward to. Well...I better start digging out my records too.

    Is our government really that oblivious to the costs associated with adoption? Yes.....it really does cost that much and we probably didn't even include a lot of the little fees that we had to pay every time we turned around. Maybe after reviewing a couple thousand filings they will get it!

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  5. Wow everyone must be getting the same letter. I am going to be working on mine tonight and mailing back tomorrow. Good luck to everyone...

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  6. wait! what? I have to provide receipts for all that stuff? I thought all they wanted was the proof you completed your adoption? Now they want receipts about how much it all costs? could someone please send me a copy or picture of the IRS request to my e-mail? bdm9370 at yahoo dot com? or just e-mail me off blog?

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  7. here's the thread http://forums.adoption.com/adoption-finances/386599-filed-2010-taxes-but-irs-needs-more-info-adoption-credit.html there's lots of helpful info therer...

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  8. We received our full refund plus and additional $800 that we didn't even ask for. They found another deduction for us! I have to say I had been hiding my head in the sand waiting for the "letter" and not willing to check the status of our return. It was a huge blessing to get home on monday from a funeral to our nice check in the mail. Have no idea how ours passed through though.

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  9. Sent ours back out on Monday. I was on the phone with the IRS for quite awhile today and they said every single adoption credit would be audited and could take up to 6 months. Oh boy. Hopefully they will be able to process them quickly. I am amazed it only took you 7 hours! You must be really organized.

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  10. Who's going to stop the madness! Does anyone know a senator with some pull?
    They are reviewing and asking for further proof on domestic SN adoptions too (or so I heard) Maybe they will get tired of it and shove ours through...we are supposedly getting ours on May 17-initially May 12....we might as well start copying

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  11. This was our first adoption (in 2010) and we got our refund super quick. We did send in a bunch of legal docs when we filed, but they never questioned any of it.
    We are blessed because we couldn't wait a moment longer for that money to come...

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  12. Hmmm...maybe this is why we haven't received our tax return after waiting more than two months?? Seriously? They're really that concerned about adoptive parents stealing their money? Sigh...guess I'd better dig out those receipts.

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  13. Yes...and even if you DO get through...I have heard that you will be back audited in the future...so DON'T GET RID OF YOUR PAPERWORK! :)

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  14. In the same boat as most of you. My thought is, I think they are auditing or asking for more documentation, 1) due to the fact that you can claim the whole amount in one year, instead of the 5 years they have to refund the entire amount, or 2) uncle sam is about broke and they are dragging their feet on getting money back!

    Praying it is faster than 6 months return for all! God can move mountains....I think He can do the same for the IRS!

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  15. We are in same boat, only our adoptions were "Special Needs Foster Care adoptions" of which no expenses were incurred, but those families who adopted those children are also elibible for claiming that entire amount. We had to send pretty much all the same things, the birth cert., adoption cert, the final adoption decree AND the state's adoption assistance agreement (which is supporting documentation that child is INDEED special needs).....sam thing, in review. We filed Early Feb 2011, had been accepted with a return date of 4/12....end of March we get a refund direct depositied for amount minus our adoption credit! (big difference right?) "The letter" came asking us to "resend" all our info" we did again via fax, and certified mail PLUS we added a Letter head copy of our County's Children's Bureau written to IRS stating both children were deemed special needs!! So they recieved it 4/4/2011 sent yet another letter saying to us sayinth that info will be reviewed and in 45 days we will have a response. Well this week was that deadline and TODAY I go to the mailbox, open ANOTHER IRS letter saying The info recieved on 4/4 2011 is being reviewed and we will recieve a "reply" by 6/19/2011!!! Unreal. They still owe us our remaining refund! On two adoptions of 2008, amd 2009 it was our "carry forward amounts" and nothing more. But it's still quite a bit of money, and we really counted on it and need it! We were legal in claiming, we are always so careful filing our taxes, they can review everything all they want, we have nothing to hide. They won't find a thing we did wrong. So frustrating, becuase families count on their tax returns. I have heard families have had to send in 3 duplicate docs! The tax advocate's office are ZERO help, actually not very nice speaking with. They will expidite nothing unless basically you have a home in forclosure and are in "dire crisis" the lady said. I was told today we will just wait like everyone else, sometimes it takes 12 months! (sigh)

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