Loading ...What about federal tax benefits for adoption?
Adoption Federal Tax Benefits Adoption Law
What about federal tax benefits for adoption?
There are two tax benefits available to offset the expenses of adopting a child on the federal income tax return. Beginning in 2002, the nonrefundable tax credit for qualified adoption expenses for each child under 18, or a person that is physically and mentally incapable of self-care, is $10,000. (Beginning in 2003, the maximum credit increases to $10,160.) From 1997–2001, the credit was a maximum $5,000 per child ($6,000 for a child with special needs). The credit is phased out for adjusted gross incomes between $150K and $190K.
If your employer has an adoption assistance program and pays or incurs qualified expenses on your behalf, you may be able to exclude from your gross income up to $10,000 of these benefits. An adoption assistance program is a separate written plan set up by an employer to provide adoption assistance to its employees.
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