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Is support of an orphan/orphanage tax deductable?
We were adopting kids from a foreign orphanage, which is a legal US 501c3 charity. Due to a natural disaster, only two of the kids were adopted. We had supported all 3 of the kids, while they were there, as we went through the adoption process. So, I'm wondering if we can deduct the support expenses we paid. One of the kids needed extensive hospitalization, which we also paid out of pocket. Can we deduct that also? How much is deductable? What percentage? If so, Is there a max amount per year?
Thanks for the answers. Yes we did adopt two - but the result is not finalized yet. It's still in process as we speak.
I suspected that the Tax Lady's answer was right, but can't find any specific details saying that.
Pastor Art, thanks - I didn't realize that the 50% was "of my AGI", I thought that was 50% of the donation. Makes much more sense now! That helps a ton!!
So, i guess basically i can deduct anything that wasn't specifically for our adoption then - is that how you both understand it??
5 Answers
- troLv 71 decade agoFavorite Answer
charitable deductions are to an organization that has the 501(c)3 designation, donations are not allowed made for an individual(you can't donate to a clergyman for himself, it has to be his church)
so the expenses of the children you adopted are part of being a parent, everyone has it and you are no exception
and yes, the 50% donation of your AGI is valid, but there are some limitations, there are different kinds of charitable organizations and there is also a 30/20 split as well
- ninasgrammaLv 71 decade ago
The expenses you paid the orphanage were not charitable donations but were in anticipation of adopting particular children, and the expenses were paid for their benefit. Therefore, you have no charitable deduction.
If you adopt a child who is not a US citizen or resident, you may qualify for an adoption credit in the year the adoption was finalized. Expenses paid for a child who is not a US citizen or resident and whose adoption was not finalized are not deductible.
- Anonymous1 decade ago
Your donations to the orphanage are *not* deductible. You only sent money because you were expected to get a child. This is self-serving and not considered a valid charitable donation.
If you adopted the children, you can claim them as dependents and include their medical expenses if it exceeds 7.5% of your AGI.
- 1 decade ago
Did you actually adopt them?
If the money you paid was to the Charity, that would be deductable up to 50% or 30% of you Adjusted Gross Income, depending on what kind of charity it is.
And that question I can't answer off the top of my head.
Call me sometime next week and we can talk about it in more depth.
If you actually adopt a child, you are eligible for a tax credit for up to $9,000 in 2008 and $12,500 in 2009. I don't have handy the amount for 2010.
Form 8839 is used to get this credit.
Now if the adoption was of a foreign child, the rules are different. I don't know those rules off the top of my head at 10:30 on a Sat. night.
Which is why this question is more complex than can be dealt with in the typical Q&A format of Yahoo Answers.
Source(s): 44+ years following a Jewish Carpenter & studying His Book! I am the real Pastor Art, not the clone. Minored in Accounting at ISU The Apostle Paul made tents, PA does taxes and accounting. - How do you think about the answers? You can sign in to vote the answer.
- ?Lv 45 years ago
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