Tuesday, March 8, 2011

Progession

Bids are rolling in on the house, and while I feel a bit antsy about finding out the final amount, things look really good so far.

A couple of weeks ago, I wrote to my senator and congressmen about an issue on the new refundable tax credit. Representative Simpson wrote me back today, and while he obviously can't change the law by himself, it was really nice to know that he read my email and responded.

The short of it for those of you who are interested is this; when we adopted Hadley, we were told he was a special needs adoption because of his heart issues. On our taxes we claimed the special needs credit and for three years, no one has asked for any paperwork regarding it. This year, the adoption tax credit is refundable which includes the rollover we have been carrying forward for the past 4 years on both boys adoptions. Since it is refundable, the irs wants all sorts of paperwork, specifically, paperwork regarding H-man's special needs status.

The irs guidelines say that the special needs assessment must be made by the state. Guess what, because he was a private adoption, the state won't make the assessment. So, now I get to refile the past three tax returns. Party.

I wrote to the senator and congressmen expressing my concern that the tax law as it stands, completely excludes families who open their homes and hearts to special needs children while adopting through a private agency instead of the state. Like I said, the law won't change, but it was gratifying to know that I was heard.

1 comment:

Harper said...

Way to be proactive, Dan! Frankly, taxes boggle my mind most of the time. I don't envy you having to refile your last 3 returns ... (best of luck with that! Seriously!)

We experience the joy of filing in 2 countries, and the U.S. taxes are a gong show because Tyler is Canadian. He's worked in the States, so he has taxes to file, yada, yada ...

All in all, it's a pain! We wish you luck!