Discussion:Exclusion of Employer Adoption Benefit
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Revision as of 23:23, 26 September 2009
Discussion Forum Index --> Advanced Tax Questions --> Exclusion of Employer Adoption Benefit
Discussion Forum Index --> Tax Questions --> Exclusion of Employer Adoption Benefit
| 26 September 2009 | |
| In 2007 taxpayer received $4,000 from an employer sponsored adoption benefit program.
Taxpayer paid $7,500 to an adoption agency in 2007, and an additional 12,000 in 2008 - child was not born until Feb. 2008. The child was US born (not foreign). Taking the tax credit for the $11,650 in 2008. You can take the credit and the exclusion so long as the total expenditures equal at least the sum of both. Taking the tax credit for the $11,650 in 2008. You can take the credit and the exclusion so long as the total expenditures equal at least the sum of both. Did not have any ss # for the adopted child by time 2007 tax filing was due so this $4,000 was added to W-2 wages and taxed in 2007. From what I read I ought to be able to amend 2007 now to get the exclusion but Proseries gives an error message when entering a 2008 birthdate. The exclusion for foreign born children can only be taken in the year of adoption but it appears that the exclusion is allowed prior to that time if the child is US born. Maybe the answer is that no adoption benefit should have been paid by the employer for an as yet unborn child. But that does not track reality. Any thoughts? | |
