Adoption News
Adoption Tax Credit
The cost of adopting a child can be significant. The law permits adoptive parents to claim a credit against their federal tax for up to $11,650.00 for tax year 2008. The adoption of a child with special needs does not require the taxpayer to have qualifying expenses.
These amounts are phased out if your modified adjusted gross income is between $174,730 and $214,730.
For more information:
See your IRS form 8839, Qualified Adoption Expenses Go to the following link for North American Council on Adoptable Children (NACAC) http://www.nacac.org/postadopt/taxcredit.html
The federal adoption tax credit has helped thousands of families to offset the costs and fees associated with adopting a child. Unfortunately, the tax credit is set to expire in December 2010 unless Congress votes to continue it. It's time to take action!
The Adoption Tax Relief Guarantee Act of 2009, H.R. 213, will keep the adoption tax credit from being repealed, and may make the tax relief measure permanent. It only takes a few minutes to email or call your senators and congressman. It's important for them to hear from families impacted by the tax credit.
Currently, there are 76 State Senators and Representatives cosponsoring H.R. 213. However, there are 16 states that currently have no sponsors of this bill, including either on the East Coast (one of the largest areas of the US with internationally adopted children). H.R. 213 is currently in committee, where most bills die. It is imperative that adoptive families and all friends of children waiting for families act now. It only takes a few minutes to write, call or email your representatives. Please do so today!
Email your Representative: US House of Represntatives website
Email your Senator: US Senate website
Child Tax Credit
The Child Tax Credit is $1000, for the 2009 tax year, for each qualifying child.
Most families who can claim a child as a dependent should also be able to claim the child tax credit. This credit is in addition to the adoption tax credit, the credit for child and dependent care expenses, and the earned income tax credit.
Again, the IRS recognizes adopted children as the same as other legal children. To qualify for the child tax credit, a child must meet all of the following five criteria:
The child must:- be your child (including foster child) or sibling, or a descendant of your child or sibling (for example, your grandchild).
- have been under age 17 at the end of the year.
- not provide over half of his or her own support for the calendar year.
- have lived with you for more than half of the calendar year.
- be a U.S. citizen, a U.S. national, or a resident of the United States (if you are a U.S. citizen or U.S. national and your adopted child lived with you all year, that child meets this condition.)
The information provided was adapted from Together as Adoptive Parents, Inc, 2008 Adoption Credit, Child Credit, and Legal Guardian Brochure.
