|
 July
12, 2011 40 year old mom and model,
Denise Richards, welcomed a new baby to
her home!
Richards recently adopted a baby girl
which means daughters Sami and Lola are going to have a new big sister
duties to perform around the house. Richards asked Sami and Lola to help
name the baby and together they came up with
Eloise Joni. (Joni is the name of
Richards' mother) What makes this adoption different from those of
Angelina Jolie,
Madonna, and Sandra Bullock for example?
Denise Richards adopted a child from right here in the States.
Cost of adoption
Have you considered adoption? It is a extremely big decision for any
family. From a financial perspective adoption an be out of reach for many
families.
Adoption.com says, "Agency and private
adoptions can range from $5,000 to $40,000 or more depending on a variety
of factors including services provided, travel expenses, birthmother
expenses, requirements in the state, and other factors. International
adoptions can range from $7,000 to $30,000."
There is some help though for families who are considering adoption.
First, some companies have an adoption assistance program. That means that
the company gives cash assistance, up to an amount per the company's
policy, to the employee who is adopting a child. Secondly, there is a very
generous tax credit available to families who adopt. It is called the
Qualified Adoption Expenses Credit.
Help with adoption costs: "The
Qualified Adoption Expenses Credit"
This tax credit allows families who adopt a qualified child to receive a
credit for adoption fees, court costs, attorney fees, and travel expenses.
A qualified child is someone under 18. The maximum amount of credit you
can receive in 2011 is $13,360.00. Remember this is a refundable credit
and is not the same as a deduction. A refundable credit first reduces the
amount of tax you owe, then if the credit eliminates your tax liability
(and there is still an amount of credit left) you can receive that back as
cash, or in this case carry the remaining credit forward to reduce next
year's tax as well.
Unfortunately, Denise Richards will not be entitled
to the Qualified Adoption Expense Tax Credit because the credit begins to
phaseout when your modified adjusted gross income exceeds $185,210.00. The
credit is completely phased out when your MAGI exceeds $225,210.00.
You can learn more about the adoption tax credit
here. |
