Your employee was entitled to receive a W-2 statement from you before January 31st. Failure to deduct the employee's share of these taxes makes you liable for the full amount. The IRS has recently liberalized the independent contractors rules, and part-time household workers may qualify for this exception. California, however, has not followed the IRS's lead. Unused credits may be carried forward for 5 years.
Credit is applied on a per-child basis and is available in the year the adoption becomes final.
This change does not apply to payments made by an agreement, court decree or mediation award in effect on or before September 13, 1995. The information contained at this site is for educational purposes only and is not intended for any particular person or circumstance. A competent tax professional should always be consulted before utilizing any of the information contained at this site.