Adoption Tax Credits

WHAT IS AN ADOPTION TAX CREDIT? (An excerpt directly from the IRS Adoption Benefits FAQs web page.)

The adoption tax credit offsets qualified adoption expenses, making adoption possible for some families who could not otherwise afford it. Taxpayers who adopt a child may qualify for an enhanced adoption tax credit for tax year 2011.

Generally, you may qualify for the adoption credit if you adopted a child and paid qualified expenses relating to the adoption. The amount of the tax credit is as much as $13,360 for 2011. If you attempt to adopt a U.S. child, you may be able to claim the credit even if the adoption does not become final. If you adopt a U.S. child with special needs, you may qualify for the full amount of the adoption credit even if you paid few or no adoption-related expenses, if the adoption is final. A child is a U.S. child if he or she was a citizen or resident of the United States (including U.S. possessions) at the time the adoption attempt began.

For 2011, you may not get the full amount of the adoption credit if your modified adjusted gross income (MAGI) is more than $185,210 and the credit is completely phased out if your MAGI is more than $225,210.

For more information visit http://www.irs.gov/Individuals/Adoption-Benefits-FAQs

Help With Calculating Your Adoption Tax Credit

• Calculating your Adoption Tax Credit (US Government IRS Form) http://www.irs.gov/pub/irs-pdf/f8839.pdf
• Instructions for calculating your Adoption Tax Credit (US Government IRS Form) http://www.irs.gov/pub/irs-pdf/i8839.pdf

Adoption Tax Credit Tips 

• Top Ten Tips For Avoiding Delays When Filing For The Adoption Tax Credit. From the adoption support group Creating a Family.