Adoption Assistance Program
PDF version of program description available
PDF version of reimbursement claim form available
Stanford University offers eligible employees adoption
assistance that reimburses up to $10,000 per adoption for "qualified adoption expenses." Any
expenses incurred on or after the employee's first day of Stanford University
employment, but not before September 1, 2001, are eligible for reimbursement
consideration.
Eligibility
Eligible Employees
All benefits-eligible faculty and staff working at least 50% FTE or more and
with an assignment of at least 6 months are qualified to apply for reimbursement
under the Adoption Assistance Program.
If an employee leaves the University, the employee
is considered eligible for reimbursement of "qualified adoption expenses" if
the placement of the eligible child or the finalization of adoption occurred
prior to termination. All expenses claimed must have been incurred while
Stanford employed the employee. Claims for reimbursement must be made within
30 days of termination.
Eligible Child
The adopted child must be under the age of 18 at the time a "qualified adoption
expense" is paid or incurred and may not be the child of the employee's spouse
or domestic partner.
Benefit Amount
Documented "qualified adoption expenses" for an eligible
child will be reimbursed to a maximum of $10,000 per adoption and up to two
adoptions per family. If an employee and his/her spouse or domestic partner
both work at Stanford, the two together are eligible to be reimbursed up
to a maximum of $10,000 per adoption and a limit of two adoptions per family
($20,000).
In the case of the simultaneous adoption of two eligible
children, the maximum reimbursement will be $10,000 for all combined "qualified adoption expenses" and
counts as one adoption.
If the employee and his/her spouse or domestic partner
receive adoption assistance from any source other than the Stanford Adoption
Assistance Program for "qualified
adoption expenses," those same expenses will not be eligible for reimbursement
under the Stanford Adoption Assistance Program.
Qualified Adoption Expenses
"Qualified adoption expenses" are reasonable and necessary
adoption fees, court costs, attorneys' fees, and other expenses directly
related to, and whose principal purpose is for, the legal adoption of an
eligible child, such as:
- Reasonable and customary public and private adoption agency fees permitted
or required under the law of the state having jurisdiction over the adoption.
- Reasonable and customary legal and court fees.
- Reasonable and customary fees for medical and hospital services provided
to the child (not otherwise covered by insurance).
- Travelling expenses associated with the adoption, including transportation,
meals, and lodging.
- Immigration, child's immunization, and translation fees.
- Temporary foster care charges provided before placement of the eligible
child in the employee's home.
Nonqualified Expenses
Qualifying adoption expenses do not include expenses:
- That violate state or federal law,
- For carrying out any surrogate parenting arrangement
- For the adoption of your spouse¹s child,
- Paid using funds received from any federal, state, or local program,
- Allowed as a credit or deduction under any other federal income tax rule.
Tax Treatment of Reimbursement
The information provided here is a summary of the current
tax laws as they apply to the Stanford University Adoption Assistance Program.
This is not intended as tax or legal advice. Individual employees should
consult with their own tax and/or legal advisors prior to participation.
For more information concerning tax implications, see IRS Publication 968, "Tax Benefits for Adoption," which
is available from the IRS website at http://www.irs.ustreas.gov.
- Congress provided for a tax credit, subject to income limitations, of up
to $10,000 for expenses to adopt an eligible child.
- Eligible employees may use both the income exclusion and the tax credit
for adoption expenses, provided that the same expenses are not submitted
to the Adoption Assistance Program and also used to calculate the tax credit.
The limit for the combined exclusion and credit is $10,000 per adoption.
- Stanford University will not withhold any federal or California State taxes
on reimbursements to the employee under the Adoption Assistance Program.
- Stanford University will withhold FICA taxes on reimbursements to the employee
under the Adoption Assistance Program to the extent the employee's total
FICA wages, including the adoption reimbursement, do not exceed the calendar
year FICA maximum. SU will withhold FICA-HI (Medicare) tax on the employee's
total wages including the adoption reimbursement amount.
- IRS regulations currently state that the tax credit,
as well as the income exclusion, for adoption assistance paid under this
Adoption Assistance Program begins to phase out as the modified adjusted
gross income ("modified AGI")
of the employee and the employee's spouse exceeds $150,000. The income exclusion
is completely eliminated once the modified AGI reaches $190,000.
- If the employee believes that the phase out of the income exclusion for
the Adoption Assistance Program benefit will apply, the employee may increase
his/her income tax withholding for federal and state taxes by completing
a revised form with the Stanford University Payroll Department Payroll Department.
- In all cases, the employee is responsible for the
accurate reporting to the IRS and state and local taxing authorities of
amounts reimbursed under the Stanford University Adoption Assistance Program.
Such amounts are identified on the employee's year-end W-2 for the year
in which the benefit is paid. Reimbursement amounts will be shown in Box
12, with code "T."
Reimbursement Procedures
Eligible employees may apply for reimbursement of "qualified adoption expenses" upon
placement of the eligible child in the employee's home. Applications for reimbursement
must be made within six (6) months following the finalization of the adoption.
In the case of an unsuccessful adoption, qualified adoption expenses may
be reimbursed with authorizing documentation. The reimbursement will be considered
part of the maximum amount allowed per employee.
Reimbursement forms can be downloaded directly
from the WorkLife Office website or call the WorkLife Office at (650)
723-2660 and one will be sent to you.
Send or submit the completed reimbursement form with verifying
documents and invoices to:
WorkLife Office
655 Serra Street
Stanford, CA 94305-6110
Sorry, no faxes will be
accepted.
For more information, call the WorkLife Office at (650) 723-2660.
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