Archives for June 2014

Adoption Tax Credit Made Permanent as of January 2013

Information supplied by Donald C, Cofsky, Esquire

On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (H.R. 8), and it was signed into law by President Obama on January 2, 2013.

The Adoption Tax Credit was one of the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that has now been made PERMANENT. This is a welcome turn of events, since many felt that the best outcome would only be a temporary extension of the credit.

All of the ground rules for the Adoption Tax Credit remained the same as they were for the tax year 2012, except that the amount of the maximum credit increased slightly, as did the amounts of the lower and upper limits of income eligibility. All three of these numbers are adjusted each year in accordance with the cost of living. The IRS typically announces the adjusted numbers before the end of the prior year. The IRS has announced that the maximum credit for 2014 will be $13,190 (up from the 2013 number of $12,970) and that the full credit will be available to taxpayers with a modified adjusted gross income (MAGI) of $197,889 or less, after which it will begin to phase out, and will not be available once the MAGI reaches $237,880. All of the other provisions remain intact, including (a) the ability to carry the credit forward for up to five years in order to take full advantage of the credit; (b) the ability to claim the maximum amount of the credit (without the need to show actual expenses) for the adoption of a special needs child; and (c) the ability to claim the credit in the case of a failed adoption.

The Adoption Tax Credit, although now permanent, is not a “refundable credit.” It was refundable during 2010 and 2011 through a provision of the health care legislation, but since this provision was not in the 2001 EGTRRA legislation, it is not a part of the current law. Nevertheless, any unused portion of the tax credit can be carried over as a credit against taxes for up to five years so that it may be used in its entirety.

Adoption Attorneys in New Jersey

Contact our office online or call us at (856) 429-5005 in Haddonfield, NJ, at (856) 429-5005 in Woodbury, NJ, or in Philadelphia, PA, at (856) 429-5005. We provide a free initial consultation in personal injury and workers’ compensation matters.

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Donald Cofsky’s practice involving Family Formation includes adoption and assisted reproduction law. He has represented over 1500 families in private, agency, international, and domestic adoptions. He has served as a lecturer at numerous adoption seminars and has worked with the NJ Supreme Court Rules Committee on revisions to the court rules on adoptions. He is the Immediate Past President of the American Academy of Adoption Attorneys, and a Fellow of the American Academy of Assisted Reproduction Technology Attorneys. Mr. Cofsky is certified by the Supreme Court of NJ as a Civil Trial Attorney, and has received “A” and “V” ratings by Martindale-Hubbell, its highest for both ability and ethics. In 2005 he was named as an “Angel in Adoption” by the Congressional Coalition on Adoption in Washington, DC.

New Jersey was the first state in the union to adopt a policy stating that couples seeking to adopt children may not be discriminated against due to sexual orientation or marital status. It is one of the easier states in the union for same-sex couples to adopt children in. The standard, appropriately, for adopting a child in New Jersey isn’t about gay or straight. The standard, rather, is what is in the best interests of the child in question.

One way New Jersey same-sex couples can adopt is through a legal process called co-parent adoption or second-parent adoption. This is adoption in which one parent already has legal rights to the child in question. The second parent can then adopt the biological or adopted child of his or her same-sex partner without regard to their marital status.

Same-sex couples who have a baby through artificial reproductive technology, including artificial insemination, or by having a surrogate carry the baby to term may choose to protect their rights to legally parent the child through the co-parent or second-parent adoption process.

Same-Sex Adoption Attorneys in New Jersey

At the law office of Cofsky & Zeidman, LLC, our lawyers bring more than 25 years of experience to every matter we handle. Attorney Donald C. Cofsky has personally handled more than 1,500 adoption proceedings since joining the bar in 1974. Attorney Bruce D. Zeidman has protected the interests of clients in state and federal courts in New Jersey and Pennsylvania since 1984. We understand the challenges you face, and can help you identify all your options so that you can make good decisions that are in your best long-term interests. Contact our office online or call us at (856) 429-5005 in Haddonfield, NJ, at (856) 429-5005 in Woodbury, NJ, or in Philadelphia, PA, at (856) 429-5005. We also provide a free initial consultation in personal injury and workers’ compensation matters.

On May 27, 2014 New Jersey became one of approximately 10 states to allow adoptees access to their original birth certificates.

Bills had been proposed for well over 15 years in New Jersey, each failing to pass, but recently the Legislature approved one. The Governor conditionally vetoed it in order to provide additional protections for birth parents who placed children prior to its enactment. The Bill was then modified and now provides that for any adoption which has taken or will take place before August 1, 2015, the birth parents may request that their names not be released as part of the original birth certificate. For adoptions thereafter, these records will be available, but only to certain individuals. This would include the adoptee after reaching the age of 18 as well as other specifically named family members.

Along with this is a Contact Preference form. This will allow the birth parent to indicate whether he or she wishes to be contacted once the information is released. It also provides for the method of contact, either through an agency, specifically named intermediary, or by direct contact. It also provides an option for no contact at all.

One of the other important features of this Bill is the request and in some circumstances requirement that updated medical and social background information be supplied to the Office of Vital Statistics so that the adoptee or those permitted to obtain the information will be able to access this which could be very important. There is no requirement, however, that identifying information be included.

For more information about this and its applicability contact an adoption professional, either a local licensed adoption agency in New Jersey or an experienced adoption attorney such as a Fellow of the American Academy of Adoption Attorneys.

Adoption Attorneys in New Jersey

At the law office of Cofsky & Zeidman, LLC, our lawyers bring more than 25 years of experience to every matter we handle. Attorney Donald C. Cofsky has personally handled more than 1,500 adoption proceedings since joining the bar in 1974. Attorney Bruce D. Zeidman has protected the interests of clients in state and federal courts in New Jersey and Pennsylvania since 1984. We understand the challenges you face, and can help you identify all your options so that you can make good decisions that are in your best long-term interests. Contact our office online or call us at (856) 429-5005 in Haddonfield, NJ, at (856) 429-5005 in Woodbury, NJ, or in Philadelphia, PA, at (856) 429-5005. We also provide a free initial consultation in personal injury and workers’ compensation matters.