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Tuesday, July 23, 2013

Our agency is so excited by this news!  Adoption DOES break the cycle of violence and poverty, which are the two major factors that put babies at risk.

Study Results: The "Crack" Kids are All Right!
The findings of an exciting study conducted over a quarter century right here in Philadelphia came to the surprising above conclusion!

The years of tracking "addicted babies" led to an unexpected conclusion.  Neonatologist, Dr. Hurt found, "Poverty is a more powerful influence on the outcome of inner city children than gestational exposure to cocaine." Other researchers have also found cocaine exposure doesn't seem to effect overall cognition and school performance.

You can read the report of the long term study through this link...

Tuesday, July 16, 2013

Tips for Claiming the Adoption Tax Credit for a Failed Adoption

       By now, most of you know about the permanent adoption tax credit for each successful adoption attempt and for each adopted child.  The full credit is now $12,970.  The credit phases out for taxpayers with an adjusted gross income over $234,580.  You can carry the credit forward for up to five years.
       There is still confusion about failed adoption attempts.  Yes, each failed/disrupted attempts QUALIFIES for the credit.  Each client will need specific receipts that show that the adoption expenses came out of his/her account - not someone else's.  You will need back up documentation from your agency or attorney.

Mark T. McDermott, a D.C. adoption attorney raises some interesting points about the claiming of a tax credit for failed adoptions.  He writes..

      "When to claim is a separate issue.  In a failed adoption, of course, there is no finalization.  My position is that the equivalent of finalization is when the adoption fails, so you can take the credit in that year.  If you follow the IRS instructions to the letter, you claim the year after the expenses were incurred.  If you do this, you can adjust your withholding to get immediate use of the money. 
        IRS instructions also state that, if you take a credit for a failed adoption, and later adopt successfully, you have to offset the credit.  But nothing in the statutes or in legislative history supports this.  Each adoption or failed adoption involves a different child, so you can take a separate credit for each.  Every time my clients have fought the IRS on this matter, they've won."