Did you know there’s an adoption credit available to families who adopt an eligible child during the current tax year? Here’s some great in formation directly from the IRS about the adoption credit:
- Generally, if you’re married, you must file a joint return to take the adoption credit or exclusion. If your filing status is married filing separately, you can take the credit or exclusion only if you meet special requirements. Check our irs.gov or ask your local tax preparer for details.
- 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.
- Qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to and for which the principal purpose is the legal adoption of an eligible child.
- An eligible child must be under 18 years old, or be physically or mentally incapable of caring for himself or herself.
- The adoption credit or exclusion cannot be taken for a child who is not a United States citizen or resident unless the adoption becomes final.
- Under the dollar limit the amount of your adoption credit or exclusion is limited to the dollar limit for that year for each effort to adopt an eligible child. If you can take both a credit and an exclusion, this dollar amount applies separately to each.
Read the rest over at irs.gov.
Tags: Tax Tips
This entry was posted on Tuesday, November 24th, 2009 at 1:39 PM and is filed under Franchising, Tax News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
