Wednesday, November 23, 2016

Good News for Thanksgiving--2017 Tax Credit

As the Holidays are fast approaching, we have some great news to share with you.  The IRS just released the 2017 Adoption Tax Credit amount and it's up from last year.  Creating a Family has a good overview:

Straight from the Creating A Family Website:
Image result for thanksgiving

"2017 Adoption Tax Credit-Non Special Needs Adoptions

The amount allowed in 2017 for the Adoption Tax Credit for non special-needs adoptions, both domestic and international, is $13,570 for “qualified adoption expenses”. The definition of what IRS considers a qualified adoption expense has not changed, and families must be able to document these expenses, if requested by the IRS. This amount is up slightly from 2016 ($13,460).
The 2017 Adoption Tax Credit begins to phase out for taxpayers with modified adjusted gross income (MAGI) more than $203,540 and completely phased out for taxpayers with MAGI of $243,540 or more.

Image result for thanksgiving2017 Adoption Tax Credit-Special Needs Adoptions

Families who adopt a child with special needs from US foster care are eligible to claim the Federal Adoption Tax Credit in 2017 of $13,570 whether or not they actually incurred any adoption expenses. A child is considered to have “special needs” if they receive an adoption assistance/subsidy benefits from the state.
Children adopted internationally, even if they have diagnosed special needs, are not considered as a “special needs adoption” by the IRS and parents can only claim the credit for qualified adoption expenses."

We hope everyone one has a Happy Thanksgiving and encourage you to look out for our next blog post.

Drafted by Brittany Alness, staff member of the Law Offices of Karen S. Law, PLC.
This blog 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 blog are depictions of clients and are not actual clients of this law firm. Copyright Karen S. Law, 2016