Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Adoption Tax Credit

This Thursday morning is a big day for the parents of adopted children with special needs. They'll line up at Department of Revenue offices across the state. When the offices open at 7:45, they'll put in their paperwork, hoping to get a piece of the two million dollars set aside for the adoption tax credit. KSMU's Missy Shelton recently spoke with Todd Ivason, the Deputy Director of the Division of Taxation in the Revenue Department...She asked him to explain why these parents have to hassle with this early morning application process to receive the tax credit.

Todd Ivason says because there is a $2 million cap on the adoption tax credit, people must stand in line July 1st, the first day the Revenue Department begins accepting applications. Last year, there were so many applications that the cap was reached on July 2nd. The state legislature did pass a bill this year that could change this process. A bill that deals primarily with changing the state's foster care system includes a provision that creates two pots of money for the adoption tax credit. The first pot of money is for people who adopt Missouri children with special needs. The second pot of money is for people who adopt children from outside of Missouri with special needs. Each pot has $2 million. In effect, lawmakers doubled the money available for the tax credit. Further, they made it available on a pro rata basis. So, the Revenue Department will accept applications from July 1st til June 30th. After June 30th, the department will assess how many people have applied for the credit. They will then distribute the $2 million proportionately so that everyone gets an equal share. Lawmakers expect people to receive all or nearly all they claim because the amount of money available has doubled. However, the governor has not signed this bill yet. So Todd Ivason recommends people who want to apply for the credit plan to line up early as usual at Revenue offices around the state the morning of July 1st. The offices will open at 7:45AM.