Archives for September 2023

How Adopted Children Can Influence Their Parents

What Influence Do Adopted Children Have on Their Parents?

The Early Growth and Development Study, or EGDS, is a prospective adoption study that was conducted over a long term, launched by a psychiatrist from Yale. The study’s goal was to find out what influence adopted children have on their parents. Some of the results were surprising.

Shifting the Focus

When it comes to child-parent relationships, most people think of how parents influence their children first. But according to the EGDS’s findings, it may be just as important to consider the reverse, particularly in adopted children. EDGS has been around since 1994 and is still ongoing.

New data has confirmed that genetics play a major role in these relationships, and they are anything but one-sided. Researchers’ findings bear some indication that an understanding of this relationship from both angles can be helpful in resolving family disputes and living harmoniously together.

Four Key Findings

The findings that EGDS investigators made over the course of these studies fall into four overall categories. The first is that the genetic makeup of a child may stir up specific types of responses from the parents. The second is that a child’s genetics play a part in what they need from their parents.

Thirdly, according to the EGDS’s findings, the genetic makeup of a child will have an influence on the way they interact with their parents. It is particularly the case with the pattern in relationships or behavior commonly referred to as “a downward spiral.” This works like a negative feedback loop where each person’s bad reaction fuels the other person’s, and the situation worsens exponentially with each interaction.

The data from this project showed how adoptive children’s genetics can make or break these unhealthy and highly compelling patterns. Depending on what their genetic makeup is, it may work to either speed up the cycle or effectively undo it.

The fourth and final finding from the compilation of research involved corroboration with some of the most critical responsibilities that parents have.

Some of the findings from these studies in the EGDS might seem like common sense. For instance, if the child is generally happy and pleasant, they’re much less likely to elicit negative reactions from their parents. However, the data dives deeper and provides more specific insights, such as the fact that these negative or positive reactions are likely to be more pronounced when they come from the father figure.

But if the child is genetically predisposed to anxiety or depression, for instance, these downward spirals of parent-child interactions are much more likely to occur. The studies also show that once families are caught up in these habits, the child’s genetics will likely exacerbate and accelerate this cycle.

The research indicates that there is valuable information to be learned by looking at the genetic predispositions of the child’s birth parents, especially if you’re an adoptive parent working with a New Jersey adoption attorney. According to these findings, whether or not the parents had strong social connections or if they tended towards less healthy mental habits and patterns of activities plays a key role in the family life that their biological children will have.

Process of Elimination

Studies like the EGDS benefit from the adoption component built into the design. Thanks to this fact, researchers were able to rule out common genes that are shared between parents and their children since that can’t be a cause of associations between the child and the rearing parents.

When rearing parents exhibit symptoms like depression and anxiety, it can have an effect on the anxiety, depression, and other behavioral issues in the child. This suggests that there is an environmental aspect of the behavioral phenomenon. However, since the symptoms of depression seen in birth parents were also related to the behavior issues that their child struggles with, it seems to researchers that this environmental component goes along with some degree of genetic influence.

Contact the law offices of Cofsy & Zeidman today for a New Jersey adoption attorney who will help with your case. We serve New Jersey and Pennsylvania. You can reach Donald Cofsky at (856) 429-5005.

The Adoption Tax Credit

Understanding the 2023 Adoption Tax Credit

In 2023, adoptive parents can qualify for a federal adoption tax credit, which acts as a refund depending on how much taxes they owe. Every year, around 135,000 children and adolescents are adopted. Before you complete the adoption proceedings, you should know if you qualify for this year’s adoption tax credit.

Federal Adoption Tax Credit

The adoption tax credit is designed to help families reduce some of the costs associated with completing any type of adoption. To obtain this year’s tax credit, the money must be claimed on next year’s tax return. A person’s financial situation determines how much money they’ll receive when claiming the credit. The highest available amount for every eligible child is $15,950. If the adoption was finalized in 2022, the credit is $14,890.

 

The limits placed on the tax credit are based entirely on the modified adjusted gross income you accrue during 2023. If your income is higher than $279,230, you can’t claim the full credit. However, a lower amount of this credit is available if you make anywhere from $239,230 to $279,230.

How This Credit Works

The tax credits you receive are mainly based on the qualified adoption expenses you’re tasked with spending. These expenses mainly include:

  • Agency fees
  • Legal fees
  • Travel
  • Adoption court fees
  • Meals during your travels

If you owe $8,000 in taxes and receive a tax credit of $10,000, you will have $2,000 left over for the future. In the event that the child has special needs or is adopted directly through the government, the total credit is provided without taking expenses into account.

Claiming the Credit

These tax credits are meant to be claimed during the year that the adoption is completed. The types of documents that people might require when filling out their tax forms include:

  • Adoption agency placement agreement
  • Child’s social security number
  • Court documents
  • Adoption decree

Since your child’s Social Security Number is necessary, it’s not possible to claim this credit before the adoption is finalized.

Is the Credit Always Available?

There are several additional considerations that might apply when you’re trying to claim the credit. If the adoption is eventually unsuccessful, the tax credit is still available. Expenses that build up when attempting to adopt a child can be reimbursed. However, this benefit doesn’t apply to international adoptions. In this scenario, the adoption must be successfully completed.

Adoptive families that wish to claim the adoption tax credit can fill out IRS Form 8839 to do so. When a married couple tries to claim this credit, they usually need to file a joint return. When filing separately, specific requirements need to be met before claiming the credit. Call our New Jersey adoption lawyer today if you have questions about these requirements.

What Happens When Expenses Are Higher Than Liabilities?

Tax credits can either be refundable or used as an actual credit on your taxes. When a credit is refundable, the amount of the credit that exceeds your tax liability will be provided to you as a refund once you’ve submitted your tax return. Since the federal adoption tax credit is considered a real credit, it can only be used to reduce the tax liability you have.

Let’s say you owe $10,000 for the year but are eligible for a tax credit of $13,000. The refund you receive will cover the $10,000. However, the remaining $3,000 doesn’t just disappear. When the adoption tax credit is higher than the tax liability, it can be moved forward for as long as five years. In this scenario, the remaining $3,000 could be put toward your next tax return.

What Employer Reimbursements Involve

Some employers have adoption benefit programs that employees can gain access to. These programs often reimburse some of the adoption expenses, which can then be excluded from the income you report on your tax credit. Any benefits you receive from this program are tax deductible. Employer contributions often range from $5,000-$25,000.

 

Even when someone receives this exclusion, they’re able to claim the tax credit for any remaining adoption expenses. However, the tax credit can’t be used for the same expenses that were excluded by your employer.

Whether you seek a private adoption or agency adoption, the process of adopting a child can be a lengthy one. With legal assistance, you can obtain counsel throughout the entire adoption process. Call our New Jersey adoption lawyer Donald Cofsky today at (856) 429-5005 to schedule your first appointment.