You may be able to take a tax credit for expenses paid to adopt a child. The credit generally applies to the year the adoption is finalized in court. Obviously the adoption credit is not available for any expenses that have already been reimbursed to you by the agency or state. In addition to the credit, certain amounts reimbursed by your employer may qualify for an exclusion. For both the credit or the exclusion, qualifying expenses include adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to the adoption of a child. Under certain circumstances, the amount of your qualified adoption expenses may be increased if you adopted a child with special needs. The credit and exclusion both have a dollar limit and an income limit.
If your adoption is finalized and you have questions about this tax credit, please contact us at 1-888-200-4005.
Thursday, February 28, 2008
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4 comments:
Is there a limit as to how many times you can claim the adoption tax credit. My husband are looking to adopt at least two children but possibly at different times. Unless we find a sibling group!!
The adoption Credit is limited to $10900.00 per adoption. This credit can be taken over a period of 5 years.
What if it hasn't cost you anything to adopt? can you still claim a adoption tax credit and if so what form would I use.
I adopted two special needs children in 2003. I was not aware of the adoption credit until last week. Can I still use it? Also, does the IRS require the adoption subsidy to be reported. I had the understanding it was in the same bracket as welfare assistance and not required to be reported.
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