Timely tax information available for adoptive parents

Judith Wilhoite, executive director of It Takes an Ohana (formerly the Hawaii Foster Parent Association), writes:  “It's that time of year again and we want to be sure your tax preparer has the information needed when preparing your taxes, for unique tax rules that affect foster, kinship care and adoptive families."

Click here to download the 2008 National Foster Parent Association Federal Tax Benefits booklet that explains basic rules and offers tips on ways that families can legally claim the maximum tax benefits available to them.

“Another wonderful resource we have found," she wrote, "is the North American Council on Adoptable Children's (NACAC) Tax Issues Related to Adoption Assistance and Adoption fact sheet.  Because adoptive and foster parents wonder about claiming their child as a dependent and using the child tax credit, NACAC recently reviewed related IRS publications and offer their interpretation of this and other issues in this two-page fact sheet.

“We suggest you print a copy of the booklet and/or factsheet for your tax preparer and discuss whether you qualify for any of the benefits discussed. This information is not legal advice or tax advice. It is general information that should not be acted upon except in consultation with a professional tax advisor.”