The Adoption Advisor

Changes to the DC Adoption Process – Article

Mark McDermott — Mon, 23 Jan 2012 19:41:34 +0000

The National Law Journal recently published an article on changes to the DC adoption process over the last 15 years. The article speaks to the greater efficiences in the current process, both through internal reforms and legislative changes. As an attorney who has practiced law in the District for 26 years, I am quoted in the article. The Children’s Law Center, also quoted in the article, has gratiously provided a link to a PDF of the full article here.

Read the article online (login required) or download a PDF.

Creating a Family Radio Show – Adoption Tax Credit

Mark McDermott — Tue, 27 Dec 2011 15:09:59 +0000

On December 14th, I spoke with Dawn Davenport on her Creating a Family radio show. Our conversation focused on the Adoption Tax Credit. Take a listen – we covered some great information. Additionally, for another resource, take a look at Creating a Family’s FAQ page on the Adoption Tax Credit.

Link to the Adoption Tax Credit Radio Show

Adoption Tax Credit – 2012

Mark McDermott — Thu, 08 Dec 2011 04:12:17 +0000

The adoption tax credit is adjusted each year based upon the cost of living allowance. The adjusted numbers have been published by the IRS in Revenue Procedure 2011-52. The maximum credit for 2012 will be $12,650. The full credit will be available to taxpayers with modified adjusted gross income of $189,710 or less and the amount of the available credit phases out to zero as modified adjusted gross income approaches $229,710. It will not be a refundable tax credit in 2012.

Paper for the American Academy of Adoption Attorneys

Mark McDermott — Thu, 12 May 2011 17:15:00 +0000

Recently, I prepared a paper for the annual meeting of the American Academy of Adoption Attorneys, a national association of 330 attorneys who practice and distinguish themselves in the field of adoption law. The meeting took place in Savannah, Georgia from May 4 to May 5.

My paper addressed changes to the adoption tax credit and the ramifications going forward. For more information, read the full paper here: Adoption Tax Credit is Alive and Well – Mark McDermott

Washington Times Article

Mark McDermott — Wed, 11 May 2011 14:30:21 +0000

Recently, I was interviewed by Andrea Poe, a reporter who writes The Red Thread: An Adoptive Family Forum for The Washington Times. She asked me about my experiences as an adoptive parent and as one of Washington, DC’s top adoption attorneys. Through our conversation, I explained why every adoptive family should seek legal assistance and identified the key issues that prospective adoptive parents should be aware of.

Read the full interview here: Attorney Mark T. McDermott offers legal advice for adoptive parents

Keynote Address – International Visitor Leadership Program

Mark McDermott — Fri, 06 May 2011 14:35:23 +0000

Periodically, I speak to different groups interested in adoption issues. As I have done before, on May 2, I gave the keynote address before the International Visitor Leadership Program, a program of the U.S. State Department. My keynote address described the legal and social context for international adoptions in the U.S.

If you have questions about this topic, please feel free to contact me, as I am glad to offer assistance.

Extension of Adoption Tax Credit – 2012

Mark McDermott — Tue, 04 Jan 2011 20:43:03 +0000

On Friday, Dec. 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended the adoption tax credit until Dec 31, 2012. However, the refundability of the credit ends as of Dec. 31, 2011, returning to the old tax credit format (with an inflation adjustment).

The adoption tax credit will be refundable in 2011, but not for 2012. The refundability was created earlier this year by the Patient Protection and Affordable Care Act and is in effect until Dec. 31, 2011.

The Joint Tax Committee says that for 2012, the maximum benefit will be $12,170 (indexed for inflation after 2010).

Adoption Tax Credit – 2010 & 2011 Refundability

Mark McDermott — Mon, 11 Oct 2010 21:38:07 +0000

As part of the health care bill signed into law by President Obama on March 23, 2010 (Patient Protection and Affordable Care Act P.L. 111-148), the adoption tax credit (ATC) was preserved for 2011 and increased to $13,360.

Additionally, the tax credit is now refundable. This means that even families that owe zero taxes can receive the full tax credit in the form of a tax refund to help with their adoption-related expenses.

In cases where families have already finalized an adoption – say for example in 2008 or 2009, but due to the family’s low income and low tax liability the family could not use the full ATC, the unused amount carried forward to future tax years.

Now, with the 2010 change and the “refundable” nature of the ATC for 2010 and 2011, the act allows those past tax year carry forward ATC amounts to be refunded in cash in 2010.

The IRS Guidance 10-66 deals with this issue in Section 3.

More information on the differences between Refundable vs. Non-Refundable Tax Credits:

A direct, dollar-for-dollar reduction of one’s tax liability. That is, if a taxpayer otherwise owes $2,000 to the government in income tax, but has $1,000 in tax credits, then the taxpayer only owes $1,000. Tax credits may be either refundable or non-refundable. A refundable tax credit means that if one’s tax liability goes below zero, the government owes the taxpayer the remainder of the credit. Non-refundable credits mean that the tax liability cannot go below zero. Relatively few tax credits are refundable; most are limited to the amount of one’s tax liability. However, the earned income tax credit is a common example of a refundable credit.

New DC Adoption Law – Update

Mark McDermott — Wed, 25 Aug 2010 04:15:30 +0000

The DC Council has revised the DC adoption law. On July 12, 2010, Mayor Fenty signed The Adoption Reform Amendment Act of 2010. It was sent to the U.S. Congress on July 15 for the mandatory congressional review period and is projected to take effect on September 30 of this year.

One change will affect re-adoption cases. Look at Title IV of the Act which eliminates the need for re-adoption in cases in which (1) a final decree of adoption has been granted by a foreign country and (2) the child has been issued an IR-3 visa. The Department of Health will be empowered to issue a new birth certificate without the necessity of a court action.

See the recent FPA newsletter (Page 7) for more information: FPA Newsletter 2010 Vol 2.

Also read the text of the new law at: www.dccouncil.washington.dc.us/images/00001/20100624152755.pdf.

New Adoption Legislation in the District of Columbia

Mark McDermott — Tue, 16 Mar 2010 01:07:27 +0000

The D.C. Council is considering legislation that would make adoption easier. The proposed legislation would:

Eliminate the current cap on agency placement fees and thus promote more adoptive placements with DC residents
Eliminate the necessity of a court action in DC in most cases in which a child has been adopted from a foreign country
Make post-adoption contact agreements enforceable
Establish a registry to facilitate voluntary reunions between adult adoptees and their birth parents.

I testified at a hearing on the proposed legislation which was held on 3/4/10. Here is a link to a copy of the written version of my testimony:

DC Council Testimony – March 4, 2010