Friday, January 27, 2012

Adoption / Foster Care: What's Hot Now: Tax Credit Changes for 2011

Adoption / Foster Care: What's Hot Now
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Tax Credit Changes for 2011
Jan 27th 2012, 11:05

Question: How Has the Adoption Tax Credit Changed for 2011?

The bill President Barack Obama signed into law on March 30, 2010, HR 4872, the Health Care and Education Reconciliation Act of 2010, brought about changes not only to the health care system, but to a few tax laws, including the adoption tax credit. This law brought about changes to the adoption tax credit in 2010, and those changes continue through 2011.

Answer: Many of the changes for the adoption tax credit remain the same as in 2010, but here are a few points of change to the 2011 adoption tax credit which include:
  • Adoption Credit Refundable Once Again The adoption tax credit became refundable in 2010 and will remain so through 2011. Before the change to the adoption tax credit law, the adoption credit helped pay for tax liabilities. Meaning that the amount paid out to adopt an eligible child was subtracted from the family's tax liability. Now, even if an adoptive family does not owe on taxes, they will receive the adoption tax credit as a refund, even if they paid nothing to adopt a child, like in the case of a foster care adoption.

  • Tax Credit Amount for 2011 Once again the maximum adoption credit has been increased from $13,170 to $13,360 per child adopted in 2011. This amount is supposed to remain increased through 2012.

  • Adoptive Parent Income Adoptive parents hoping to claim the 2011 adoption tax credit must have an income that falls below the federal modified adjusted gross income of $185,210 in order to receive the full tax credit or refund. An adoptive family that makes more than the federal modified adjusted gross income of $225,210 will not be eligible to receive the adoption tax credit. Families with incomes in between these two figures will see their adoption tax credit reduced.

  • Special Needs Adoptions Adoptive parents can claim the full adoption tax credit, if they adopted a child with special needs in 2011, even if they did not have any adoption expenses - like a foster care adoption.

  • Other Adoptions Adoptive parents of children without special needs can claim the adoption tax credit on qualified adoption expenses which were necessary in order to complete the adoption, as long as those expenses were not reimbursed by anyone else, such as an employer. So, if the adoption expenses did not exceed the amount of the adoption credit, then the adoptive parents may receive a refund. If expenses exceed the amount of the adoption tax credit, the maximum credit to be claimed is $13,360 per child in 2011.

  • Rolling Over Past Adoption Credits Please know that any amount of the adoption tax credit from previous years was above the adoptive family's tax liability, that amount can be carried over for five years to be used in subsequent tax years to cover future tax liabilities. The great news for adoptive families according to Daniel L. Tenney, Senior Tax Advisor V of H&R Block, those past adoption tax credits can be refunded back to the adoptive family in 2011.

    "The roll forward of the adoption tax credit can be confusing as most people (and a lot of misinformed preparers or Certified Public Accountants) believe that after three years the tax year is closed and cannot be amended or even initially filed outside this time period. That is incorrect. While you will not be able to claim any additional monies for those "closed years" you can amend or initially file to roll forward a tax credit such as the adoption credit which rolls forward for five years." ~ Daniel L. Tenney

    This is fantastic news for adoptive families! Consider utilizing the funds received from the adoption tax credit as a way to build a college fund for your children, pay off your mortgage, or seek out supports needed to parent special needs.

  • Adoption Tax Credit and the Self Employed According to Tenney, for the years 2010 and 2011 the refundable portion of the adoption tax credit can be used to offset the self-employment taxes. For years when the adoption credit was not refundable it could only be used to reduce tax liability and not self-employment taxes. Tenney suggests that for the years 2010 and 2011 think of the refundable adoption tax credit as money you had withheld from your paycheck or as estimated taxes you paid.

Remember that in order to file for the adoption tax credit, you will need to gather numerous documents to prove your family's eligibility.

Read also: How to Claim the 2011 Adoption Tax Credit.

SOURCES:
Adoption Credit and Adoption Assistance Programs for 2010 and 2011

Interview with Daniel L. Tenney of H&R Block
Mr. Tenney is available to work with adoptive families in all 50 states and can work over the phone, through the internet and even has Skype capability. Feel free to contact him with any of your adoption tax credit questions at daniel.tenney@tax.hrblock.com

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Adoption / Foster Care: What's Hot Now: What Is an Adoption Subsidy?

Adoption / Foster Care: What's Hot Now
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What Is an Adoption Subsidy?
Jan 27th 2012, 11:05

To help encourage the adoption of special needs children, federal subsidies were created by Congress through Public Law 96-272, the Adoption Assistance and Child Welfare Act of 1980. A child may receive a federally funded adoption subsidy under Title IV-E or a state funded adoption subsidy (non-Title IV-E) based on each state's guidelines.

Defining Special Needs

A child may be deemed special needs and be eligible for an adoption subsidy based on a variety of guidelines that are unique to each state. Some of the guidelines that help determine a child's eligibility include:


  • age of the child
  • sibling group of 3 or more who are being adopted together
  • medical disability
  • mental disability]
  • emotional disability
  • a family history indicating that the child may need medical treatment or therapy at various developmental milestones
  • member of a minority group

To find information specific to your state see the State Adoption Subsidy Profiles.

Amount of Adoption Subsidy

The amount of the adoption subsidy varies by state with a range of approximately $400 to $700 per child. Whether an adoptive relative can obtain an adoption subsidy also varies by state.

Medicaid Benefits

Children who have federally funded (Title IV-E) subsidy are automatically eligible for Medicaid benefits. However, if the child has state-funded adoption subsidy (non-title IV-E) it is the state's decision whether that child is eligible for Medicaid benefit. Benefits cover a broad range of medical services, therapy, and treatment.

Should adoptive families receive adoption subsidies?
1. Yes, but only in the case of special needs children.

2. Yes, adoptive parents are taking on another person's responsibility. They don't know what issues the child may have down the road.

3. No, all parents must be fully responsible for their children, including financially.

View Results

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Adoption / Foster Care: What's Hot Now: DNA Testing & Adoption Search

Adoption / Foster Care: What's Hot Now
These articles that had the largest increase in popularity over the last week // via fulltextrssfeed.com
DNA Testing & Adoption Search
Jan 27th 2012, 11:05

More and more adoptees are turning to a DNA test to help them uncover their birth ancestry during an adoption search. Some turn to DNA testing to verify a birth family connection; this was the case with Olympic skier Toby Dawson's adoption search. Before you use a DNA test, first learn some basics.

Know a Gene from a Chromosome

Physical traits and characteristics are determined from our genes. A genome is a complete set of 30,000 to 40,000 genes. A chromosome holds our genetic material. Chromosomes carry the genetic information in long strands of DNA called genes. The DNA is a blue print for creating a human. Each person has 22 numbered pairs of chromosomes and a single pair of sex chromosomes. Each pair of chromosomes is made up of one chromosome that was inherited from the father and one from the mother.

Looking for Mutants

So because we get half of our chromosomes from our fathers and half from our mothers, each half represents our ancestors and what has been passed down to us through the maternal and paternal line. The issue is that this information has been shuffled. Only parts of our genome remains unshuffled from parent to child. There is only small segments of our genetic code that is occasionally mutated. The mutations then become markers of our descent.

The Y-Line

All chromosomes are found in matching pairs except for the Y chromosome, or sex chromosome. This chromosome comes from the father. Because the Y chromosome doesn't have a match it escapes from the shuffling that occurs with each new generation. This means that the Y is allowed to pass down through the male line of descendants changed only by some random mutational events.

The mtDNA

The mtDNA or Mitochondrial DNA is passed from a mother to her offspring, both male and female. The mtDNA that is within you is the same that is within your mother and her mother, but only females continue to pass on that same mtDNA to her offspring. This DNA can be quickly scanned to see the many mutational events that have been passed down through the maternal line.

How the DNA Test Is Done

A simple cotton swab is swiped along the inside of a person's cheek. This is very easy and painless; so simple that a newborn can have it done. This swab sloughs off skin cells from the inside of the cheek. These cells contain the genes or DNA. The swab is then sent to a DNA lab for analysis and compared to other family member's DNA.

Know Your Goal

What is your goal with a DNA test?
  • Do you want to be added to an adoption reunion registry in order to find birth relatives?
  • Do you want to confirm the relationship of an already found relative?
  • Do you want to discover if your internationally adopted child has a sibling here in the States?
  • Do you want to know your deep ancestral history such as through the project being done by The National Geographic?
Once you have these answers you will know where to go from here.

Choose an Established DNA Testing Center & Lab

I spoke with Jim Hanigan of DNA Diagnostics Center (DDC). DDC is responsible for 3 out of 4 private DNA paternity testing done in the US. Their center is also responsible for the DNA testing performed on numerous talk shows. Mr. Hanigan cautions those seeking DNA testing to carefully select a testing center. He stated that as DNA becomes more popular and Internet sites advertising testing become available, choose a lab that is established, not a lab that may disappear.

Check Your Expectations

You may not get the information that you were seeking. DNA is based on percentages and a reputable lab will not claim a relationship that is not definitively there. Why do other adoptees seek out DNA testing? Read why one adoptee is participating in The National Geographic Genographic Project.

SOURCES:
The National Geographic Genographic Project
DNA Diagnostics Center (DDC)

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Thursday, January 26, 2012

Adoption / Foster Care: What's Hot Now: Landmark Cases in Adoption Law

Adoption / Foster Care: What's Hot Now
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Landmark Cases in Adoption Law
Jan 26th 2012, 11:05

To understand adoption law and policy, one must understanding the important legal cases involving it. Landmark cases are those that significantly change existing law. This paper summarizes 11 landmark cases--six from the U.S. Supreme Court, four from State Supreme Courts, and one from a federal appellate court.

U.S. Supreme Court cases must be followed by all courts nationwide. State Supreme Court cases must be followed by all courts in that state. Federal Appellate cases must be followed by federal courts in that federal circuit. The country has 11 federal circuits, each consisting of several states. The sixth circuit, for example, consists of Kentucky, Tennessee, Michigan, and Ohio. All courts may consider case opinions from outside their own state or federal circuit in reaching a decision, but they are not bound by them. The state and federal appellate cases cited here have been highly persuasive across the country.

U.S. Supreme Court Cases

State Cases

Federal Appellate

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Adoption / Foster Care: What's Hot Now: Parenting with 5 Love Languages

Adoption / Foster Care: What's Hot Now
These articles that had the largest increase in popularity over the last week // via fulltextrssfeed.com
Parenting with 5 Love Languages
Jan 26th 2012, 11:05

I believe in the wisdom behind Dr. Chapman's book, The Five Love Languages. The idea that each of us gives and receives love in different ways, just makes good sense. The use of love languages is a way to build bonds with anyone that you care about, but also a wonderful way to build an attachment with foster or adopted children.

Dr. Chapman feels that each child has an "emotional tank." When a child really feels loved his love tank will be full, but when the love tank is empty, the child will have behaviors. "Much of the misbehavior of children is motivated by the cravings of an empty 'love tank.'" How many of us are parenting children from the foster care system or from an orphanage that are operating on empty love tanks?

Why Does My Child Still Feel Unloved?

Do you wonder why your child still feels unloved or is misbehaving, even though they've been in your home for the past several months or even years? The answer may lie in the fact that you are speaking the wrong language.

What Are the Five Love Languages?

  1. Words of Affirmation
    Use lots of praise and encouraging, kind words if your child's love language is Words of Affirmation. Remember to leave the past in the past with your child and not relive every past mistake. Post affirmation messages such as, "I am loved" in your child's bathroom or bedroom. Leave notes in his lunchbox. Write a letter to your child about how proud you are of her. Compliment your child in the presence of others. Catch your child doing well, look for strengths and notice those strengths. "I noticed that you did your chores today without being reminded. Thanks."

  2. Quality Time
    The child who feels love best through Quality Time, enjoys spending time with you. Not just watching a movie together, but focused attention with quality conversation, eye contact and real listening. Take this opportunity to reflect back feelings with statements like, "It sounds like you are disappointed" or "It sounds like you had a really fun day," or "It sounds like you're nervous about visiting your birth mom tomorrow." Many of our children don't have an understanding of their emotions and struggle to identify them. Quality time together may be a wonderful way to reteach feelings and that there is no such thing as a bad feeling.

    Take a walk together and talk about their day, go to the park, visit the zoo and find out their favorite animal, go on picnics, bake cookies together, ask the child to list out five activities they'd enjoy doing with you, work on lifebooks together, or camp out in the living room. There are a ton of fun ways to spend quality time with your child.

  3. Receiving Gifts
    The old saying, "It's the thought that counts" is the real point behind this love language. Dr. Chapman says, "Gifts are visual symbols of love."

    The great thing about the love language gifts is that according to Dr. Chapman, it's the easiest one to learn, if it's not your primary love language. Gifts can be simple, inexpensive, and even handmade. It's about telling the receiver that they were remembered, which means loved to those who speak this love language. Don't forget the gift of self, especially in times of crisis.

  4. Acts of Service
    When it comes to children, this love language can be pretty simple. As parents we are usually providing acts of service to our children, by making meals, driving them to appointments, and doing laundry. If you would like to do more for your child, announce that you will be doing their chore today saying, "Because I love you, I will do the dishes tonight."

  5. Physical Touch
    Dr. Chapman included the following bit of information, "Numerous research projects in the area of child development have made that conclusion: Babies who are held, hugged, and kissed develop a healthier emotional life than those who are left for long periods of time without physical contact."

    As foster parents we know that children who are not loved and held may develop attachment issues. This is not news to us. So, fulfill the physical touch love language for a child in your care by sitting close to them while watching television. Hold hands while taking a walk. Give a quick side hug and tell them that you love them. Physical Touch may be a bit rougher to express with some children, especially those who have suffered sexual abuse. So, remember boundaries and make smart choices for your welfare as well as the child's.

How We Receive Love Best Is Also How We Are Hurt the Easiest

One important point that Dr. Chapman shared in his book is that the way we feel love best is also the way we can be hurt the easiest. "A slap in the face is detrimental to any child, but it is devastating to a child whose primary love language is touch."

The same is true for other love languages. A father who works too much or ignores his a child to work on a computer, would be particularly painful to a child whose love language is Quality Time. Hurtful, negative words full of criticism would be especially damaging to a child whose love language is Words of Affirmation.

Discovering Your Child's Love Language

When they are little, don't be afraid to try all of the love languages on your child. As they grow, the easiest way to determine your child's love language is to watch and see how they express love to you. Does your child ask for you to come into their room to show you a project - Quality Time. Does your child often hug and kiss you - Physical Touch. Does your child create gifts and spend time wrapping them - Receiving Gifts. Does your child ask to help you with projects - Acts of Service. Does your child compliment you or tell you that you did a great job with dinner - Words of Affirmation. Remember, it's easier for us to offer love to others through the love language that we like to receive love.

If your children are old enough, there is also a test that was formatted specifically for children that I located online by a Christian group, Growing Families International.

Remember each child is different and has their own love language. It may be a good idea to explain the concept of love languages to your children and share what your love language is too. Think how much stronger your family will be when you are all speaking each other's love language.

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Wednesday, January 25, 2012

Adoption / Foster Care: What's Hot Now: Russia Changing Adoptions

Adoption / Foster Care: What's Hot Now
These articles that had the largest increase in popularity over the last week // via fulltextrssfeed.com
Russia Changing Adoptions
Jan 25th 2012, 11:05

Russia has historically been in the top three countries in popularity among American adoptive families along with China and Guatemala. In 2006, Americans adopted 3,706 Russian children. Russia is not the only country changing it's international adoption policies. China's new stricter guidelines took effect May 1, 2007 and Guatemala is working to comply with the Hague Convention on Inter country Adoptions. (The State Department does not recommend adopting from Guatemala(2007)).

Current Status

History

In 2005, Russian adoptions by American parents slowed by a third. This is reportedly due to the battle between child care agencies and politicians, which has come to a head after the recent deaths of Russian children who have been murdered by their foreign adoptive parents. Since 1990, when Russian adoptions were made open to foreigners, 15 children have been murdered. The Education Ministry, which oversees the adoption of Russian children by foreigners, has been heavily scrutinized by the State Duma(lower house of the Federal Assembly, the parliament of the Russian Federation) after the mistreatment, abuse, and murder of Russian children by U.S. adoptive parents. The State Duma has accused the Education Ministry of being corrupt and making money off of the sell of Russian children. Russian adoptions and the Russian adoption process has been under investigation more than once.

Some reports estimate 700,000 children wait to be adopted in Russia.

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Adoption / Foster Care: What's Hot Now: Adoption an Option?

Adoption / Foster Care: What's Hot Now
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Adoption an Option?
Jan 25th 2012, 11:05

Whatever happened to families sticking together, working out their problems and being there for each other? That is how some members of the adoption triad feel about placing children in adoptive homes. I've read many grandparents and adoptees on our forum ask, "What's wrong with having a teen, single, or a poor parent? Especially when there are parents, grandparents, siblings, or other members of the birth family available to help support the mother or father." Many feel that being in one's own biological family is so important for a sense of well-being that being in a potential rough situation is worth it. Some adoptees have found themselves in less-than desirable adoptive homes and have been left wondering, "Would my own birth family’s situation have been any worse?"

Many birth mothers place their children in an adoptive family hoping that her offspring will have that sought after "American Dream" - the perfect life. Most of us will admit that this is not reality. So, what are good reasons to place a child for adoption? What is a scared, expectant mother to do?

  • Be smart
  • Be prepared
  • Be decisive

Know that YOU as the Mother and/or Father are in control of the future of YOUR child until the final papers are signed.

Current Status

The following is a very active poll that has been running on this site for several months. While not scientific or perfect, it does give an interesting glimpse into some of the reasons mothers have chosen to place their children for adoption.

Why Did You Place Your Child for Adoption?

View Results

What's at Stake?

Know this, adoption is about loss, not only a loss for you and your child, but your entire family.

What are the reasons for and against choosing adoption?

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