Many people are unaware of the federal Adoption Tax Credit. This is a huge help for them to be reimbursed for their adoption expenses. Usually, you have to spend the money for allowable adoption expenses to get the credit. However, if you adopt from foster care, you get the entire tax credit even though you have not spent those funds. You just have to establish that the child qualifies as a special needs child.
More information about the tax credit can be found here: Topic No. 607 Adoption Credit and Adoption Assistance Programs | Internal Revenue Service (irs.gov)
The maximum credit available for adoptions finalized in 2023 is $15,950. The adoption tax credit is fully available in the amount of $15,950 if your modified adjusted gross income is equal or less than $239,230. If your modified adjusted gross income is more than $239,230 but less than $279,230, you will receive a reduced tax credit. No tax credit is available for those earning more than $279,230. The form you submit to claim the credit is 8839. Remember to keep receipts of your expenditures, which you can claim up to the full credit amount.
No comments:
Post a Comment
Thank you for following LawAdoption. We provide reliable news and encouraging advice to adoptive parents, birth parents, and adoption professionals. For further information, please contact us at BMiller@lawadoption.com.