Foster, Kinship and Adoptive Parents Federal Tax Benefits ChangesThis is a featured page

In 2008 congress enacted tax law changes that are important for 2008 and 2009 to Foster, Kinship and Adoptive parents filing status. Let me highlight a few of them for you.

Adoption Tax Credit – This maximum was increased this year and if you have adopted a special needs child you get the full credit, the actual expenses can even be less than the maximum.

Earned Income Credit - Maximum benefit has increased and is the largest public benefit program supporting working families with qualifying children in America. The EIC is over $41k for 2008 and the amount also increased on the investment income you can earn.

Child Tax Credit – The minimum earned income amount has gone down to$8,500 and is expected to remain the same for 2009 tax year.

Standard Mileage Rate – The rate is 50.5 per mile for the first six months of the tax year and 58.5 per mile for the second six months of the year. If you are moving or driving for medical related miles the rates is 19 cents and 27 cents per mile and split the year as above.

Exemption for Displacement of a Midwesterner – If you are providing housing for a person displaced by a Midwestern disaster you can claim a $500 exemption. This tax exemption is mostly related to students that have been displaced and make sure you check for the Education Tax Credit for that student.

Penalty Increased – The “Failure to file penalty” for tax returns (including extensions) has almost doubled for those that don’t file on time. So if you haven’t filed within 60 days of the due date, you may be subject to the new penalty or 100% of the unpaid tax.

TurboTax Online will let you know if you qualify for any of these credits and guide you as your prepare your tax return. So relax, if you qualify TurboTax Online will ensure that you get all the credits and deductions you are entitled to.

Latest page update: made by bicycle1812 , Mar 26 2009, 6:52 AM EDT (about this update About This Update bicycle1812 Edited by bicycle1812

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