Los Angeles County DCFS Adoption’s Division
POST ADOPTION SERVICE’S NEWSLETTER
Did you know you might be entitled They can use up to $4,000 of their credit (their entire
to federal income tax credit(s)?
federal income tax liability) and thereby reduce their
federal income tax liability to zero. This means their
tax refund would be $5,000 (instead of $1,000) and
In 2003 the federal government began offering a
they can carry over $28,880 that’s still left of their tax
tax credit to anyone who adopted a child or children
credit for next four years (or until they use up all of the
with “special needs”. If you are receiving AAP for
remaining tax credit). A Credit Carry Forward
your adoptive child that means that DCFS has
Worksheet on the 8839 tax form (this form is not
already determined that your child met the “special
submitted to the IRS) can be used to know how much
needs” criteria to qualify for this tax credit. You
tax credit can be carried over in the ensuing year(s).
have five years in which to claim the tax credit. Use
the IRS tax form # 8839 titled Adoption Tax Credit If adoptive parents have no federal tax liability in the
to claim this credit. You must indicate on the form year their child was adopted, they should still submit a
that your child has “special needs” to qualify for this claim for the tax credit, because they might have a
credit. If your federal adjusted gross income is over federal income tax liability in the ensuing four years.
$204,410 then you do not qualify to receive this tax The adoption tax credit must be claimed in the same
credit. The credit is good for five years. The year a child’s adoption finalizes. Please also be aware
National Counsel on Adoptable Children (NACAC) that you do not have to document any expenses to be
gave the following examples of how the tax credit able to qualify for the entire $10,960 tax credit for each
works: child that you adopt in the year 2006.
If, for example, a couple adopted two children If your child’s adoption finalized in 2003, 2004, or
in 2006 they would be able to claim $10,960.00 in 2005, and you did not claim the federal Adoption
federal tax credit for each child (totaling $21,920). Tax Credit you can still submit an amended tax
If they had $6,000 in federal income tax withheld return to qualify for the credit. The deadline to
from their paychecks in 2006 and their tax liability submit an amended tax return for an adoption that
was $7,000, they would then have to pay the IRS finalized in 2003 is April 15, 2007.
$1,000. If they claim the Adoption Tax Credit they
would be able to deduct the entire $7,000 of their If you want to use the tax credit for more than one
2006 federal tax liability. This would mean that year, you must submit amended tax returns for every
instead of owing the IRS $1,000 they would get a year that you want to use the credit for a total of five
refund of $6,500 and will have $14,920 left in years.
adoption tax credit, which they can use every year Please be advised that DCFS-PAS is not a tax
for up to five years. expert, and these opinions should not be
Another example: if a couple had $5,000 in considered legal or financial advice. You should
federal income tax withheld from their yearly consult your own professional tax advisor before
income, but their total tax liability was only $4,000, filing for the federal Adoption Tax Credit.
they would be getting a $1,000 tax refund. If they
also adopted three children with “special needs” NACAC is available to answer your questions
they would have $32,880.00 worth of Adoption Tax regarding this tax credit. They can be reached by
Credit. telephone at (651) 644-3036 or on the internet at:
This newsletter is accessible on the DCFS Internet website at www.dcfs.co.la.ca.us and on DCFS’ internal site, LAKids.
that DCFS has a Special Immigration Status unit that
can review a case and possibly obtain legal
residency for a child who has an open court case in
Dependency Court and is being adopted through
DCFS. There is no fee for this service. The Special
Immigration Status unit must complete this process
for your child while your child is still a dependent of
the Juvenile Court. Once a child’s adoption finalizes
the Court also terminates its jurisdiction, and the
We have support groups that meet on: child is no longer considered a dependent of the
Court. DCFS can only obtain legal residency for
The third Tuesday of every month at 7:00 p.m. children who are current dependents of the Court.
in Los Angeles. Immigration law is complex and changes
The third Wednesday of every month at 7:00 periodically. It is strongly recommended that you
p.m. in Pasadena. consult with an attorney (at your own expense) with
experience in immigration matters.
The second Wednesday of the month at 10:00
a.m. in the San Fernando Valley.
The last Wednesday of every month at 10:00
a.m. in Compton. Every week we have adoptive parents call the PAS
The first Thursday of every month at 10:00 a.m. duty line asking whether PAS will pay for their
in Monterey Park (please note this is a adopted child’s orthodontia expenses, college tuition,
Spanish-speaking only group). and/or private tutoring costs. Post Adoption Services
An adoptive parents’ support group is forming does not pay for these expenses.
in the Antelope Valley, please call CSW Adam
If your child does not qualify for braces through the
Tunick at (213) 471-0271 for more information
Denti-Cal program, we recommend asking your
regarding this group. child’s orthodontist whether he/she offers a payment
PLEASE CALL THE PAS DUTY LINE FOR plan for your child’s braces.
THE LOCATION AND DIRECTIONS TO OUR Although there is no PAS money available to pay for
SUPPORT GROUPS. an adoptee’s private tutoring, there are dozens of
schools within the LAUSD that have free after school
tutoring programs. Please contact your child’s school
to find out whether they have a free after school
Regarding money for college. Every college and
university has a Financial Aid office. The school’s
Financial Aid office has information and Financial Aid
counselors available to assist students in obtaining
money for college. They have information on how to
apply for scholarships, grants, and student loans.
If your child was in the ILP program at the time their
adoption finalized, your child’s ILP social worker may
also have information regarding financial assistance
PAS DUTY LINE: for college. The ILP section of the DCFS website
also has information regarding college scholarships.
1-800-735-4984 The website www.fastweb.com has extensive
information on how to obtain free money for college.
PAS provides services after your adoption has finalized. For information on becoming an adoptive or foster parent, call Applicant Intake @ (888) 811-1121.