Adoption Tax Credit Info

In March of 2010 the Adoption  Tax Credit Bill was Passed!!!!!
Not only did it pass, but it was increased to $13,170.00 – effective immediately.  The adoption tax credit originally passed by Congress and signed into law by President Clinton in 1996 .  This tax credit has allowed thousands of couples to adopt that would never have been given the chance. We are so excited please pass this great news on!!!

If you are on active duty in the military, you are eligible for reimbursement of expenses up to $2,000 for the adoption of a single child and up to $5,000 per family per year. There is one caveat: The adoption must have been arranged through a source that is authorized by a State to provide adoption placements, if the adoption is supervised by a court under state or local law. Paid after the adoption is finalized, this benefit is not doubled if both parents are in the military.

Fees that can be reimbursed include agency fees, legal fees, placement fees, and medical expenses. Travel expenses were not originally covered when this program was introduced, but they may be covered now.

Military parents can exercise an option to have children that are placed with them covered by their military medical program even before the adoption is finalized. You should apply to the Secretary of your branch of the service for the child to be a “Secretary Designee.” If you have questions about this process, contact your commanding officer or The National Military Family Association at: (703) 931-6632.

Under the military’s Program for Persons with Disabilities, military parents may be eligible to receive up to $1,000 a month for disabled or special needs adopted children. The military also has a program called the Exceptional Family Member Program that will ensure that adoptive parents of special needs children are assigned to bases or duty stations that can meet the needs of the child.

To begin the adoption process, fill out this Free Adoption Application.

Loans & Resources
Loans are one way to pay for some or all adoption costs. You can talk to your bank about home equity or line of credit loans. While loans do require repayment, there are resources that can help you with that once your adoption is finalized, such as the Adoption Tax Credit.

We want to help make your dream of adoption come true by providing resources and information about mortgage-based loans, credit cards, and other financial resources. Read the rest of this entry »

The Adoption Tax Credit is now $13,170.00!! Parents whose adjusted gross income is under $182,520 will qualify for the entire $13,170.00 . Parents whose incomes are between $182,520 and $222,520 will qualify for a partial credit that is prorated. If you earn over $222,520, you are in the upper income bracket in the United States and do not qualify for the credit. While most adoptive parents will still find they have to pay substantial sums of money prior to the adoption, once completed, the credit should relieve some of the financial burden for most parents!

Did you know that it has become extremely LESS expensive to adopt a baby? That is because the Federal Government has created the adoption tax credit for adoptive parents.

Basically, whenever you adopt a baby, the government will pay you up to $13,170. This is in the form of a tax credit, and is fully refundable on your federal taxes.


You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child (including a child with special needs). The adoption credit is an amount subtracted from your tax liability. For expenses paid prior to the year the adoption becomes final, the credit generally is allowed for the year following the year of payment. A taxpayer who paid qualifying expenses in the current year for an adoption which became final in the current year, may be eligible to claim the credit for the expenses on the current year return, in addition to credit for expenses paid in a prior year. The adoption credit is not available for any reimbursed expense. In addition to the credit, certain amounts paid by your employer for qualifying adoption expenses may be excludable from your gross income.

So there you have it. Start the adoption process today by filling out this free adoption application.


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