There is no doubt, adoption can be costly. Fortunately, a tax benefit is available for qualifying adoptions.
The U.S. Adoption Tax Credit can help offset the costs of adoption, expenses associated with a failed domestic adoption, or the financial obligations of caring for a qualifying special needs child.
There is no doubt, adoption can be costly. Agency fees, attorney fees, court costs, and travel expenses can add up quickly. Fortunately, a tax benefit is available for qualifying adoptions. You may even be eligible for the credit if you adopted a child out of the foster care system but did not incur out-of-pocket expenses.
The maximum tax credit for 2015 is $13,400 per child for households with an adjusted gross income of $201,010 or less.
- Finalized foreign and domestic adoptions
- Costs incurred from failed domestic adoptions
- Special needs* adoptions that meet the following criteria: The child is a United States citizen, the child’s biological parents’ rights have been terminated, the child is unlikely to be adopted without assistance provided to the adoptive family.
- Adoptions of individuals over the age of 18 who cannot physically or mentally care for themselves… read more.
This article was published by adoption.com.