Adoption Tax Credit

Adopting Parents, we have good news!

The IRS now allows a federal tax credit for as much as $11,650 for the costs of some adoptions. The credit is a dollar for dollar reduction in your federal income tax (i.e., if your normal income tax would be $10,000, you would reduce that amount by $10,000). The 2008 adoption tax credit is $11,650. The credit begins to phase out with a modified adjusted gross income of $174,730 and is completed phased out at a modified adjusted gross income of $214,730 or more. For more information, speak to your accountant or other tax professional to see how this credit may affect you. Also for more detailed information, you can see the IRS publication by clicking here (Adobe Acrobat Reader required).