Who is eligible for the $11,650 adoption tax credit?
If your income is $174,730 or less – you qualify for the entire tax credit. If your income is between $174,730 and $210,820 – you qualify for a partial credit. Please click here to view a sample Tax Form 1040 claiming the Tax Credit. For instructions on completing the Adoption Tax Credit information, please go to http://www.irs.gov/instructions/i8839/ch01.html If you adopt a special needs child in the U.S. – you will be able to claim a $11,390 tax credit, regardless of whether or not they had qualified adoption expenses. This is a direct write-off of taxes due. So, it is worth full dollar value. Some applicants will be able to better afford adoption fees due to this tax break. Employer paid adoption assistance of up to $10,000 per child will also be tax-free. But both breaks begin to phase out once a family’s income exceeds $150,000 annually.
If your income is $174,730 or less, you qualify for the entire tax credit. If your income is between $174,730 and $214,730, you qualify for a partial credit. This is a direct write-off of taxes due which is more valuable than a tax deduction. Employer paid adoption assistance of up to $10,000 per child will also be tax-free.
