| Adoption is near and dear to my heart, as I was an | | | | is only available the year the adoption was finalized. |
| adopted infant. I have researched adopting hard to | | | | You must get an Adoption Taxpayer ID number if no |
| place kids, and was happy to find that with some of | | | | Social Security number is issued. |
| the struggles that are unique to adopted families, the | | | | The max dollars you claim for this credit is limited by |
| expense of bringing that dream home is offset with | | | | your actual expenses as well as the phase out range |
| a tax credit. While the cost of raising a child cannot | | | | for income. If you had one failed adoption attempt, |
| be calculated to make it financially profitable, having a | | | | you can write off your expenses for both processes |
| tax adoption credit available makes adoption much | | | | once you have a finalized adoption. If you are filing a |
| more achievable for many families that long for a | | | | prior tax return, or any 2007 tax form, it would be |
| child. If you have started the adoption process, you | | | | best to hire an accountant with expertise in this tax |
| know the costs associated can be overwhelming. | | | | credit area to make sure you get your full tax credit |
| The tax laws for adoption credit are fairly generous. | | | | if you have adoption expenses. There are some |
| Any direct expenses, such as travel, attorney, court | | | | expenses you can't claim with this credit, such as |
| and other legal costs, are deductible. The adopting | | | | surrogate mother expenses, so make sure you are |
| parent (s) can claim an adoption credit of up to | | | | doing things right. |
| $11,650 for 2008 for each eligible child. In order to | | | | This is encouraging for families who want to find a |
| qualify for this, you must have paid for adoption | | | | way to make a difference in the lives of a child, or |
| expenses out of your own pocket, any you must | | | | to add to their family. Adoption is a beautiful gift, and |
| have adopted an eligible child. This means any child 17 | | | | now you can find a way to afford it. Don't limit |
| or younger, or any US citizen or resident alien who is | | | | yourself to where you find that perfect addition. The |
| physically or mentally unable to care for themselves. | | | | different states often have children available that |
| For adopting parents who adopt a special needs child, | | | | need a family, and it is much less expensive than |
| the full amount of the adoption credit can be claimed, | | | | overseas adoption. If you want to go overseas, |
| regardless to what year the adoption became final. | | | | though, the incentives on your taxes take the sting |
| For children who are US citizens, you may take the | | | | out of the money it costs. There is no way to put a |
| adoption credit in the year after your expenses were | | | | price on your child, so go change a child's world, and |
| paid (if the adoption was not final), or the same year | | | | the 2007 tax adoption credit will help you do it. |
| if it was finalized. For foreign adoptions, the tax credit | | | | |