Adoption Tax Credit

Adoption Tax Credit

If you’re looking to adopt, you’ll want to find out what tax credits you may be eligible for. The Adoption Help Firm can answer any questions you have.

Know which tax credits you qualify for

Families that adopt are eligible for a tax credit from federal income tax for qualifying expenses. Federal law also contains an income exclusion for an employer adoption assistance program.

The maximum credit for 2013 will be $12,970 (up from the 2012 number of $12,650) and the full credit will be available to taxpayers with a modified adjusted gross income (AGI) of $194,580 or less. The credit will then phase out completely at an AGI of $234,580.

Qualifying adoption expenses are reasonable and necessary 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, and whose principal purpose is for, the legal adoption of an eligible child.

The tax credit may also apply even when an adoptive couple experiences a failed or disrupted adoption.

If you would like help with the adoption process, please contact our office at 605-339-3939.