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Sunday, February 11, 2007
Adding it all up
For the first time in God only knows how many years we are doing our own tax return. For years CS has been an "independent contractor" for his company and I have owned my own business. Last year both of us spent the entire year gainfully employed for someone instead of ourselves. This means one thing... Federal Taxes Withheld!!! We have not had such a luxury in eons. Of course that meant unusually high tax bills and having to pay someone to make sense of the boxes of documents and receipts we collect over the years. Not anymore my friend, not anymore. This year we are going to give it a go and try to do the damn things ourselves.

But there is a catch. A little thing called the Form 8839 Qualified Adoption Expenses. You know the one. Where you get a handy little credit from the government when you adopt a child. The reason you sit in the Social Security office with a hungry 2 year old. Yeah that.

To get to the point of actually doing our taxes and being able to take said credit we had to go about figuring out our adoption expenses. Parts of the adoption are acceptable expenses while some are not. I'm not an accountant, but I'm going to go with the "official expenses" as opposed to those like say.... the really fancy Matroyska or the hockey jersey I bought on Arbat Street. Things like the agency fees, homestudy fees, child Visa medical exams, child Visa, Russian Registration, USCIS fees those kinds of things.

In the process of adding up those expenses I started coming across a ton of receipts from our local post office and our Secretary of State's office. I began realizing that there is a huge chunk of the adoption budget that people don't really consider. Postage. If you are lucky like us and your agency is out of state you will spend more time in your local post office or FedEx store than you ever care to remember. I am also pretty sure that the people at the Secretary of State's office know me, CS and Kathou all by name.

To give you a clue as to some of the over the top things we paid for here is a list:
Apostilles (in WA only, this doesn't include the FL or WI ones we did) - 52 documents at $15 a page = $780
County Fingerprinting - $20
County Background Checks (2x) - $80
State Background Checks - $30
State Fingerprint Checks - $30
Certified copies of Marriage Certificate - $9
And last but not least
Postage - $171.70 (that is just the receipts I could find. This doesn't include the 50 gagillion DHL envelopes we sent.)
9 Comments:
Blogger A Room to Grow said...
I just updated our adoption budget spreadsheet this afternoon with current adoption agency fees & what it actually cost to complete our homestudy & I-171H. It's only $20K more than I thought it would be two years ago. Ugh!

Blogger Maggie said...
Good luck with the taxes. I still think it's a crime how much WA charges for appostilling. (And they're not even the most expensive, are they?) Where I live it's a measly $1/document. A much more appropriate fee considering there really isn't a lot of work involved.

Blogger kate said...
Hmmmm...no one has given me a receipt for anything...Does a cancelled check count? Is this different from the tax credit? Right now I don't pay taxes, but I will once I'm back in the US. Share the wisdom!!

(I just love it when blogger has visual verification with no visual!!)

Blogger Yeah So said...
Funny I was just having a similar conversation with DH the other day - when we thought about it, the biggest chunk of our costs was to the government for paperwork and postage, next biggest chunk was travel...the fee to actually adopt the boy was the smallest piece!

Blogger Elle said...
Kate, for agency fees canceled checks and your contract count. For US gov fees the USCIS sent us receipts for the items we paid for. I have them for all of our background checks, for the apostilles, the homestudy expenses and travel. I don't have a receipt for the child registration in Moscow.

Starfish, our travel costs were almost the same as our agency fees. Only about $2K shy.

Tricia, we ended up $20K over too.

Blogger Deb said...
Wow! $780 for apostilles! Thank God I live in Texas $100 per adoption. Although I think Maggie has it better.
I think if you ask your agency they should send you a statement with all the costs that can be used that you paid into them. Of course they should all be okay I would think.
Don't forget to add your donation (if it was cash) to your charity contributions not your adoption expenses. Hopefully that will help out even more.

Feel free to e-mail me if you have any questions. I might not know but working in a tax office I can find out easily.

Blogger Christen L said...
See it's moments like this I am so glad that I read these blogs. I am terrible about keeping receipts (mostly bc my DH is an accountant and checks our accounts daily - so what's the point? if there is a problem he'll catch it) Anyway, this made me realize that I need to think ahead on this one and start an adoption envelope, in my binder that I'm starting, for receipts.

Blogger Elle said...
Debbie,
The charitable contribution to the orphanage is not tax deductible. since the money is given directly to the orphanage it doesn't qualify. We checked into this. Charitable contributions only are tax deductible if they are given to organizations originating in the US. And yes we have an itemized sheet that says what the expenses we paid to the agency are. It is listed in our contract.

Anonymous Anonymous said...
You could include the agency fee ours was 17,000 and because the credit was 10,000. We just neeeded one recipt

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