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Jan 31 2011

Ohio Adoption Tax Credits

Congress has increase the tax credit(not deduction) for those who adopt (or attempt to adopt) to help defray the costs of the adoption.

            Now the federal government will send you a check for more than $13,000.00 as a credit for your eligible adoption expenses (including legal fees).  In addition, Ohio gives a tax credit (not deduction) of $1500.00 toward the cost of every adoption.  That should cover most of the costs associated with an average adoption.

            Taxpayers who adopt a child may qualify for the adoption tax credit. This tax credit has been enhanced for the years 2010 through 2012.

            You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption. The amount of the tax credit you qualify for is directly related to how much money you spent on adoption-related expenses. If you adopt a special needs child, however, you are entitled to claim the full amount of the adoption credit, even if your out-of-pocket expenses are less than the tax credit amount.

            The adoption credit is calculated on Form 8839 Qualified Adoption Expenses (PDF). You may claim an adoption credit of up to $13,170 (for tax year 2010) per eligible child.

Adoption Tax Credit Amounts

2013: $5,000 or $6,000 for a special needs child (projected)
2012: at least $12,170 (will be indexed for inflation), non-refundable
2011: $13,360 (will be indexed for inflation), refundable
2010: $13,170, refundable
2009: $12,150, non-refundable
2008: $11,650, non-refundable
2007: $11,390, non-refundable
2006: $10,960, non-refundable

Adoption Tax Credit Phase-out Ranges 

2011: $185,210 – $225,210
2010: $182,520 – $222,520
2009: $182,180 – $222,180
2008: $174,730 – $214,730
2007: $170,820 – $210,820
2006: $164,410 – $204,410

The IRS provides a worksheet for figuring your modified adjusted gross income for the adoption credit in the Instructions for Form 8839. Any income excluded from tax using the Foreign Earned Income Exclusion must be added back for the purposes of determining the phase-out range for the adoption credit.

Adoption Credit for 2010 and 2011

The adoption credit was scheduled to sunset at the end of 2010. However, the massive health care reform legislation extended and revised the adoption tax credit. The health care legislation enhanced the adoption tax credit in three ways. First, it bumped the maximum adoption credit from $12,150 to $13,170. Second, it extended this increased tax credit amount to the year 2011. Third, it made the adoption credit refundable. The Tax Relief Act extended increased dollar amounts for an additional year, through 2012.

Adoption Credit Scheduled to Sunset after 2012

The dollar amount of the adoption credit will revert back to $5,000, or $6,000 if a special needs child is adopted, beginning in the year 2013.

Adoption Tax Credit Eligibility Requirements

To be eligible for the adoption credit, you must:

  • Adopt an eligible child, and
  • Pay qualified adoption expenses out of your own pocket.

Eligible Children include:

  • any child age 17 or younger, or
  • a child of any age who is a US citizen or resident alien and who is physically or mentally incapable of caring for himself or herself.

Qualified Adoption Expenses are calculated by:

  • Adding up all the expenses related to the adoption,
  • Subtracting any amounts reimbursed or paid for by your employer, government agency, or other organization.

Adoption expenses include any and all costs directly relating to your adoption and that are reasonable and necessary for your adoption. Expenses include adoption fees, legal fees, court costs, and travel expenses.

Taxpayers who adopt a special needs child can claim the full amount of the adoption credit without regard to the actual expenses paid in the year the adoption becomes final.

Eligible expenses must be “directly related” to the adoption of an eligible child. This may include adoption fees, legal fees, and court costs. Expenses for a failed adoption might qualify for the credit if followed by a successful adoption, but the two adoption efforts would be considered as one adoption and subject to the dollar limit per eligible child. The editors of JK Lasser’s Your Income Tax advise:

“Do not include expenses paid or reimbursed by your employer or any other person or organization. You may not claim a credit for the costs of a surrogate parenting arrangement or for adopting your spouse’s child.” (page 469)

When to Claim the Adoption Credit

What year you can claim the adoption credit depends on when the adoption was finalized and whether the adopted child is a US citizen, resident alien, or foreign national.

If the child is a US citizen or resident alien, then you take the adoption credit in the following order:

  • for expenses paid before the adoption is final, you take the adoption credit in the year after your expenses were paid,
  • for expenses paid in the same year that the adoption is final, you take the adoption credit in the same year, and
  • for expenses paid in the year after the adoption is final, you take the adoption credit in the year the expenses were paid.

For example, you adopted a child in 2009, but you paid adoption expenses in 2008, 2009, and 2010. Your 2008 expenses are taken on your 2009 tax return (they must be delayed by one year because the adoption was not final). Your 2009 expenses are taken on your 2009 tax return (because they occurred in the same year as the adoption became final). You take your 2010 expenses on your 2010 tax return. In this example, your 2009 adoption expenses include costs incurred in both 2008 and 2009.

If the child is a foreign national, then you take the adoption credit only in the year when the adoption becomes final. Any expenses paid in the year after the adoption is finalized, you can take a credit for those expenses in the year that you paid them.

If your adopted child does not yet have a Social Security Number, you must apply for an Adoption Tax ID Number (ATIN) in order for you to begin claiming your adopted child as a dependent. The IRS provides comprehensive information on the Adoption Taxpayer Identification Number.

Carrying Forward the Adoption Credit

Any adoption credit in the year 2009 or earlier that was in excess of your tax liability can be carried forward to the subsequent tax year. Excess adoption credits can be carried-forward for five years and is used up on a first-in, first-out basis. For 2010, any carryover adoption credits can be refunded to you in full.

Adoption Tax Credit Resources

More about the Adoption Credit

Adoption Tax Credit Instructions from the IRS

More Adoption Resources


Sep 19 2010

Cuyahoga Child Support Amnesty to end

CLEVELAND, Ohio — More than 16,000 people in Cuyahoga County are eligible to have their driver’s licenses reinstated until Sept. 30 through the Child Support Enforcement Agency’s amnesty program.

Parents whose licenses are suspended for owing child support must pay one month of their child support obligation and at least $50 toward past-due support to get their license reinstated.

Pay with a cashier’s check or money order from 8:30 a.m. to 4:30 p.m. at the agency’s office, 1640 Superior Ave. in Cleveland or pay with cash at the Cuyahoga County Treasurer’s Office, 1219 Ontario St. in Cleveland.

After the amnesty period, delinquent parents must either pay the entire past-due amount owed or one month of support and provide an income source that can be garnished.

child-support-enforcement.jpg

Since Aug. 16, when the program began, $78,043.22 has been paid on 254 cases, CSEA spokeswoman Mary Denihan said. The highest amount paid on a single case is $3,885.20.

“Participants are responsible for the $25 driver’s license reinstatement fee required by the Bureau of Motor Vehicles,” Denihan said.

“If participants fail to continue to pay on their child support order after their driver’s license is reinstated, their license will once again be suspended and stricter criteria for subsequent reinstatement will be followed.”

Donna Miller Plain Dealer


Jul 4 2010

Child support and Social Security

Q. My ex-spouse collects Social Security Disability. Can income withholding occur on that check?

A. Yes, there can be income withholding for Social Security Disability and Social Security Retirement benefits. There cannot be a withholding for SSI because those benefits are a form of public assistance.

If you have any other Child Support questions please call our Lake County Ohio Law office and schedule a free consultion.  440-639-1020


May 28 2010

What are the most popular baby names?

Social Security released their annual list of the top ten baby names for 2009

Top 10 Names for 2009

Rank Male name Female name
1 Jacob Isabella
2 Ethan Emma
3 Michael Olivia
4 Alexander Sophia
5 William Ava
6 Joshua Emily
7 Daniel Madison
8 Jayden Abigail
9 Noah Chloe
10 Anthony Mia

May 25 2010

What if my ex-spouse moves out of state?

Interstate Situations

Q. What if the non-residential parent cannot be found locally?

A. Our office will use multiple resources to attempt to locate the non-custodial parent.  When the non-custodial parent’s social security number is known, the CSEA is able to use the State and Federal Parent Locator Service, the National Directory of New Hires, the Financial Institution Data Match, and the Federal Case Registry to assist in locating the non-residential parent.  The CSEA can also request a child support agency in another state to search for the non-custodial parent. With the increase in automated location tools, it is becoming more difficult for non-paying parents to hide from their child support obligations and the agencies that enforce them.

Q. I’ve heard there is a law called UIFSA. What does this law do?

A. UIFSA (Uniform Interstate Family Support Act) is a law regulating the establishment and enforcement of child support orders where the parents live in different states or where the support order is in a state other than where either of the parents live.

Q. I now live in Ohio but my case started in Michigan. Do I have to open a new case in Ohio?

A. No. If you choose, you may simply continue to work with the child support authorities in Michigan.

Q. I know where my ex-spouse works in another state. How can I get an income withholding?

A. Our Child Support Lawyers can explain the two ways this can be done. They may choose to simply send a withholding order directly to an employer anywhere in the country. If needed, they may also choose to register your support order for enforcement, only in the state where he works.

Q. I was divorced in Ohio but then moved to Tennessee. My ex-spouse moved to Florida and another order was established. Can I enforce both orders?

A. The UIFSA law requires the determining of one “Controlling Order.” See the Determining a Controlling Order part of the Interstate section for a description of the rules for choosing this order. Once that order is determined, it is the only order that can be enforced or modified.

Q. I live in Ohio, but my ex-spouse lives in Nebraska. Can my California support order be modified?

A. Yes. Please call our office to help you. We can register your California support order in Nebraska, which is where the modification will occur. Your order can also be enforced there.

Q. My ex-spouse lives in Oregon and is self employed. What can I do to obtain support?

A. Our attorneys can register your support order in Oregon for enforcement. The child support agency in Oregon will then be able to use all the enforcement tools available under its state law to collect your support.

Q. The CSEA here in Ohio has been trying to enforce my child support order for years but every time the agency locates the non-residential parent and are able to obtain an order for an income withholding, the non-residential parent moves to another state. Is there anything else I can do?

 

A. Your case may qualify for federal prosecution under the Child Support Recovery Act of 1992 or other federal law. You should discuss this possibility with your our attorneys.

Q. My ex-spouse paid support regularly until last month and then he moved to Europe. Is there anything I can do to get my order enforced?

A. Ohio has reciprocal agreements with several European countries, most Canadian provinces and certain other foreign countries. Some countries may also be able to assist you with enforcement, even though no formal reciprocal arrangements exist. Our Painesville Child Support attorneys can tell you what kind of help may be possible in your individual case. For a list of international child support addresses and phone contacts, please click on International Contact Information.

For more information contact our Painesville Law Firm  at 440-639-1020


May 22 2010

Child Support Guidelines

Child Support Guidelines Questions & Answers

  1.    Q. What are the child support guidelines?

    A. The Child Support Guidelines are guidelines passed by the Ohio legislature which calculate child support orders based upon the financial circumstances of both parents. Use of these guidelines is required for the establishment or modification of all child support orders in Ohio. The amount of child support which is calculated using the worksheets and schedules contained in these guidelines is presumed under the law to be the correct amount of child support in each case.

  2.    Q. Are the earnings of both parents considered in setting support?

    A. Yes.

  3.    Q. Are there any adjustments allowed for second families in the guidelines?

    A. Yes. The guidelines allow an adjustment equal to the federal tax exemption for each child who is your biological child from another relationship, as long as the child is living with you. If you are the custodial parent of a child, your adjustment will factor in any child support received for that child.

  4.    Q. Do the guidelines allow an adjustment for the parent who is paying for child care?

    A. Yes. The guidelines provide a credit for child care expenses for those children included in the order, relating to work, employment training or education.

  5.    Q. Is there any allowance for the parent who has to pay health insurance?

    A. Yes. The guidelines provide a credit for marginal, out-of-pocket costs of  health insurance which will therefore affect the amount of the order.

Please call 440-639-1020 for a free consultation with a child support lawyer.


May 19 2010

Wife Sues Husband for Share of Secret $600K Lottery Win

It was a secret that surely could not be kept for long. But Arnim Ramdass allegedly tried.

The airline mechanic, 52, disconnected the phone line at home and forbade his stay-at-home wife, Donna Campbell, 48, to watch television, Campbell claims in a lawsuit. Eventually, however, she learned the truth: Ramdass, along with 16 other mechanics at Miami International Airport, had won a $19 million lottery jackpot. Split among the 17 workers, it amounted to a $600,000 lump-sum payday, before taxes, for each of them, reports the Miami Herald.

In her suit, Campbell claims Ramdass fraudulently conspired to conceal the lottery payout from her, and contends she is entitled to a 50 percent share of her husband’s take from the winning ticket because it was purchased with marital assets.

Once the lawsuit is resolved, the newspaper says, she plans to divorce him.

However, Circuit Judge Jennifer Bailey temporarily dismissed Campbell’s case on Thursday, saying Campbell failed to show why she should have a right to her husband’s lottery winnings, the Miami Herald reported. Campbell and her lawyer have 20 days to amend the complaint.

Updated at 4:58 p.m. May 15 to include coverage of Thursday’s court date.

source abajournal

Family Law

Posted May 12, 2008 2:29 PM CDT
By Martha Neil


Oct 27 2009

Grandparent Rights

 Every family is different. Ohio laws have recently recognized the limited rights of grandparents and their grandchildren. Protection of the child is always a priority. It is important to know your rights before making any decisions about your family.

Under Ohio law, a court can award visitation rights to a grandparent  during or after a domestic relations proceeding if the grandparent has aninterest in the welfare of the child and visitation is in the best interest of the child.  A court can also award visitation rights to a grandparent if a parentis deceased or the child’s mother was unmarried when the child was born. Before awarding grandparent visitation rights in Ohio, a court must considerall relevant factors, including all factors listed in statute. In 2000, the United States Supreme Court held that a Washington grandparent visitation statute was unconstitutional as applied in a particularcase because it infringed on the fundamental right of a parent to make decisions concerning the care, custody, and control of his or her child. However, a recent  Ohio Supreme Court case determined that this decisiondoes not apply to Ohio and held that the Ohio third-party visitation statutesare constitutional on their face.Grandparent visitation: when granted  Historically, grandparents had no legal right of access to their grandchild, and parents had complete authority to grant or deny the privilege of visitation.

 Ohio has authorized grandparent companionship or visitation rights by statutein three circumstances: (1) when married parents terminate their marriageor separate, (2) when a parent of a child is deceased, and (3) when the childis born to an unmarried woman. In such cases, a court may order reasonablevisitation if it is in the best interest of the child.

PREPARED BY: LAURA SCHNEIDER, LSC RESEARCH ASSOCIATE

REVIEWED BY: MICHAEL O’NEILL, LSC DIVISION CHIEF


Oct 17 2009

Enforcement Of The Child Support Order:

 

A main objective of the Child Support Enforcement program is to make sure that child support payments are made regularly and in the correct amount. While many non-custodial parents are involved in their children’s lives and are willing to pay child support, lapses of payment do occur. When they do, a family’s budget can be quickly and seriously threatened, and the anxiety the custodial parent feels can easily disrupt the family’s life.

In addition to wage withholdings, Ohio law allows the CESA office to utilize other administrative enforcement techniques, which include but are not limited to:

Seizing State and Federal income tax returns Suspending driver’s, professional, and recreational licenses. Imposing liens on real or personal property with the proceeds of the sale being applied to the support debt
Seizing bank accounts Revoking the ability to obtain or renew a passport for out-of-the-country travel
Credit Reporting

Cases can also be referred to the Prosecutor’s Office for legal intervention when support payments are not being made. The non-custodial parent will be summoned to court to show why he or she should not be held in contempt for not paying support as ordered, and depending on the offense, can be sentenced to jail.

Frequently Asked Questions:

Q. Can a wage withholding be requested for my child support payments?

A. Yes. All support orders issued or modified must include a provision for wage withholding.

Q. Can past-due child support be taken from the State income tax refund?

A. Under Federal law, all States with State income tax must offset State income tax refunds for past-due support owed.

Q. Can Federal income tax refunds be offset the same way?

A. Yes, States can request an offset of Federal income tax refunds for past-due support.

Q. The children’s father lost his job and is collecting unemployment compensation. Can child support payments be deducted and sent to me?

A. Yes. Unemployment compensation, and other State and Federal benefits can be withheld for child support.

Q. My children are over 18 and don’t get child support any more, but there is still a $10,000 arrearage owed to me for support that was never paid. Will the CSED collect that money for me?

A. Yes, Child Support Enforcement office is required to collect the back support.

Lawyers at our Painesville firm, Patrice Denman Co. LPA, have been helping clients with divorce and child support proceedings for over 20 years. If you would like to speak with one of our attorneys, please contact our Painesville office for a free consultation.


Sep 24 2009

Divorce and Credit

Credit and Divorce

Mary and Bill recently divorced. Their divorce decree stated that Bill would pay the balances on their three joint credit card accounts. Months later, after Bill neglected to pay off these accounts, all three creditors contacted Mary for payment. She referred them to the divorce decree, insisting that she was not responsible for the accounts. The creditors correctly stated that they were not parties to the decree and that Mary was still legally responsible for paying off the couple’s joint accounts. Mary later found out that the late payments appeared on her credit report.

If you’ve recently been through a divorce – or are contemplating one – you may want to look closely at issues involving credit. Understanding the different kinds of credit accounts opened during a marriage may help illuminate the potential benefits – and pitfalls – of each.

There are two types of credit accounts: individual and joint. You can permit authorized persons to use the account with either. When you apply for credit – whether a charge card or a mortgage loan – you’ll be asked to select one type.

Individual or Joint Account

Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any “authorized” user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.

Advantages/Disadvantages: If you’re not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse’s income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

Joint Account: Your income, financial assets, and credit history – and your spouse’s – are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don’t pay them can hurt their ex-partner’s credit histories on jointly-held accounts.

Account “Users”

If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse’s name as well as in your’s (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you – not they – are contractually liable for paying the debt.

If You Divorce

If you’re considering divorce or separation, pay special attention to the status of your credit accounts. If you maintain joint accounts during this time, it’s important to make regular payments so your credit record won’t suffer. As long as there’s an outstanding balance on a joint account, you and your spouse are responsible for it.

If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts.

By law, a creditor cannot close a joint account because of a change in marital status, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts. The creditor can require you to reapply for credit on an individual basis and then, based on your new application, extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation.

For More Information

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. 

At Patrice Denman Co. LPA we are have over 20 years of Family Law experience.  For a free consultation call us at 440-639-1020