ACTION ALERT: ADOPTION TAX CREDIT MAY BE IN JEOPARDY
CHECK OUT THIS LINK FOR MORE INFORMATION: http://adoptiontaxcredit.org/
Current Practice: Adoption Tax Credit Information
Individuals qualify for the adoption tax credit if they adopted a child and paid out-of-pocket expenses relating to the adoption. The amount of the tax credit a family may qualify for is directly related to how much money they spent on adoption-related expenses. If the family adopts a special needs child, however, they are entitled to claim the full amount of the adoption credit, even if their out-of-pocket expenses are less than the tax credit amount.
Qualified adoption expenses include any and all costs directly related to the adoption and that are reasonable and necessary for the adoption. Expenses include adoption fees, legal fees, court costs, and travel expenses. The adoptive parents should add up all of the expenses related to the adoption and then subtract any amounts reimbursed or paid for by their employer, government agency or other organization. This amount should then be compared with the maximum amount allowed for the adoption tax credit.