T and D are registered domestic partners who adopted two foster children. T earns $300,000 annually as an employee. D is a nurse and earns $80,000 annually. Our office reviewed their tax returns and applied the RDP Advantage™ and the Adoption Tax Credit (ATC) to four years’ worth of returns. T and D received a net refund, before accrued interest, of over $74,000.
Breakdown of T & D’s Refund:
- Their tax status changed, resulting in a refund of $49,000 (over four years);
- The application of the RDP Advantage™ reduced each taxpayer’s income below the adoption credit threshold resulting in an additional $25,000 in refunds from two foster care adoptions.
- Net refund (before accrued interest) of more than $74,000.