For many adoptive families, the Adoption Tax Credit has been a great benefit in making adoption affordable. Families who finalize an adoption in 2010 may be able to take advantage of a tax credit $12,170 for qualifying adoption-related expenses. The 2010 credit will begin to phase out with a modified adjusted gross income of $182,520 and will completely phase out at a modified adjusted gross income of $222,520 or more.
Families who finalized an adoption 2009 may qualify for an Adoption Tax Credit of $12,150. Families should consult with a qualified tax expert to learn more about claiming the Adoption Tax Credit.
Call to Action - Adoption Tax Credit to Sunset in 2010
The Adoption Tax Credit has helped families across the nation grow their family through adoption and has helped countless children in need find a forever family of their own. However, the Adoption Tax Credit is set to sunset at the end of 2010, in which it will then revert back to its original dollar limit of $5,000 per adoption or $6,000 for the adoption of a child with special needs.
South Carolina Rep. Joe Wilson has introduced H.R. 213 - The Adoption Tax Relief Guarantee Act of 2009 to repeal the sunset of the Adoption Tax Credit. Adoptive families and adoption supporters are encouraged to contact Congress and voice their support of this important bill. To contact your congressman regarding support for H.R. 213, click here.
To learn more about the adoption tax credit, visit http://www.irs.gov/taxtopics/tc607.html