Tag Archives: Parent

Adoptive parents still waiting for tax refunds

Seal of the Internal Revenue Service

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Tax season ended months ago, but some adoptive parents are still waiting for their tax refund. Adoptive parents can apply for up to $13,170 in a refundable credit if they meet qualifications.

The adoption credit is the largest refundable credit, and joins a long list of credits like the first time homebuyer credit and child tax credit. There were delays with the homebuyer credit, and the IRS says this is all a result of the agency trying to deal with this new phenomenon of refundable tax credits.

The adoption credit is an incentive to adopt, but these long delays led some parents to worry it will be sway would-be parents away from adoption. The IRS says it’s working on the problem, but simply has to sort through all the paperwork. These refunds require documentation and a paper return at a time when the IRS is moving away from paper.

Complicating matters, the Inspector General says it told the IRS to make changes to speed up processing time but adds that the IRS chose not to make those recommended changes. For more on that part of the story, watch my investigation for NewsChannel 5.