The Iowa Adoption Credit is available for Iowans who adopt children. But the rules for how big the deduction is are different from the federal rules.
Scenario: Angie and Alice are in a same-sex marriage. In 2012, Alice went through the adoption process to become the parent of Angie's child. Because of the Defense of Marriage Act, Alice properly filed her 2012 tax return as a single person ... and claimed the adoption credit for adopting Angie's child. Questions: After the repeal [...]
What's happening with the adoption credit? Here's an overview: For 2010 and 2011, the credit was fully refundable. For 2012, the credit is no longer fully refundable, and the maximum credit decreases from $13,360 in 2011 to $12,650 in 2012. If no further legislation happens, the adoption credit will drop to $5,000 (or $6,000 for a [...]
The New York Times ran an article last week about the IRS denying adoption credit claims of some same-sex married couples. Professor Pat Cain at Santa Clara Law School in California also published a blog post about this back in August. Links to both stories are provided at the end of this article. One of the [...]