Federal Tax Credit
There is help available. The federal Adoption Tax Credit provides up
to $13,190 for qualifying expenses paid to adopt an eligible child in 2014. The credit is indexed for inflation and will
increase annually. Eligible expenses
include adoption fees, court costs, attorney fees, traveling expenses
(including amounts spent for meals and lodging) and other expenses directly
related to your adoption. There is an
income limit for this credit. See www.irs.gov, for the forms and additional
information.
Corporate Matching Gifts
Further, many large employers
offer adoption assistance. See htttp://benefits.adoption.com/
for a list of employers. Those payments
may qualify for exclusion from your income for tax purposes in addition to the
federal tax credit. You may exclude up
to $13,190 from your income in 2014. So,
for example, if your employer offers adoption assistance payments of $5,000 and
your total adoption related expenses were $18,190, you could claim $13,190 as a
tax credit AND exclude $5,000 from your income.
However, if your total expenses were $13,190, you could not take the
credit and the exclusion-the same expenses cannot be counted twice. The income limits for the tax credit also
apply to the exclusion.
Drafted by Brittany Alness, staff member of the Law Offices of Karen S. Law, PLC.
Disclaimer
This web site and the information contained within have been prepared by Law Offices of Karen S. Law, PLC for informational purposes only and does not constitute legal advice. This information is not intended to create, nor does receipt of it constitute an attorney-client relationship. Viewers should not act upon information found here without seeking legal counsel. All photographs shown on this web-site are depictions of clients and are not actual clients of this law firm. Copyright Karen S. Law, 2013.
Drafted by Brittany Alness, staff member of the Law Offices of Karen S. Law, PLC.
Disclaimer
This web site and the information contained within have been prepared by Law Offices of Karen S. Law, PLC for informational purposes only and does not constitute legal advice. This information is not intended to create, nor does receipt of it constitute an attorney-client relationship. Viewers should not act upon information found here without seeking legal counsel. All photographs shown on this web-site are depictions of clients and are not actual clients of this law firm. Copyright Karen S. Law, 2013.
