| Parents who adopt a qualified child can claim tax | | | | taxpayer to the full credit regardless of the actual |
| credits on their federal income tax, whether the | | | | amount spent in the process. Qualified expenses |
| adoption was finalized or not. But this is applicable | | | | mean adoption fees, attorney's fees, and certain |
| only to domestic adoption; rules on international | | | | travel costs including lodging, transportation and |
| adoption require that adoption be finalized before | | | | meals. |
| claims are made. Expenses for an adoption that was | | | | To be eligible in claiming the full credit: |
| stopped may be claimed in full on a second adoption. | | | | |
| Those for surrogate parents or for adopting a | | | | 1. The taxpayer's adjusted gross income (AGI) should |
| spouse's child are not qualified. | | | | be below $170,820 |
| Eligible expenses include all adoption fees, court fees, | | | | 2. The child must be a US citizen or resident |
| attorney's fees, travel expenses (meals, lodging while | | | | 3. The child must be a qualified child or a special |
| away from home) and other directly related to the | | | | needs child, below 18 or physically or mentally |
| process. Non-eligible expenses include those paid from | | | | incapable |
| a government program, paid for by the employer or | | | | The credit limit is reduced for adopting parents with |
| someone else, allowed as credit or deduction by | | | | adjusted gross income is between $170,820 and |
| another income tax provision, or violates state or | | | | $210,820. The credit cannot be claimed by those |
| federal law. | | | | whose AGI is $210,820 or more. |
| Usually the amounts spent in the adoption process | | | | Credits are claimed the year after the expenses |
| are deductible up to $11,390. There is also an | | | | were incurred or the adoption became final, |
| exclusion provision in the same amount, and both | | | | whichever came first, and may also be claimed for |
| may be claimed. Adopting a waiting child (special | | | | more than 1 year. |
| needs child in IRS publications) can qualify the | | | | |