What is the income exclusion for employer-provided adoption benefits?
You may be able to exclude from your income amounts paid to you or for you by your employer under a qualified adoption assistance program. You may qualify for the income exclusion if you adopted or attempted to adopt a child and the program paid or reimbursed you for qualified expenses relating to the adoption. The amount of the exclusion is as much as $13,170 for 2010. You may be able to claim the exclusion even if the adoption does not become final. Special rules apply for when to exclude the income for foreign adoptions. For 2010, you may not get the full amount of the exclusion if your modified adjusted gross income (MAGI) is $182,520 or more and the credit is completely phased out if your MAGI is $222,520 or more. IRS may make inflation adjustments to the maximum amount of the income exclusion and the MAGI amount for the phase-out for 2011.
