New Law Permits Adoption Tax Credit

A new act passed recently could make it possible for you to collect a tax credit of $13,170 for adoption. 

The Affordable Care Act increased the amount that you could claim for adopting an eligible child, as well as making it refundable. This means the amount could be worth even more to you at tax time. 

If you are going to take advantage of this expanded adoption credit there are several items that you should be aware of. First, the refund is available for all 2010 tax returns and you can receive it even if you don't owe any taxes. If you wish to get this benefit then you need to file a paper tax return and Form 8839, "Qualified Adoption Expenses," to get this money.

Among the documents necessary to file are the placement agreement from the authorized agency you used, final adoption decree, state's determination for special needs children and court documents. Although there are many qualified adoption expenses they normally fall under the umbrella of necessary and reasonable expenses directly related to the legalities of adopting a child.

Do you have questions about adoption, particularly step-parent adoption?  If so, contact us to get immediate answers from a Riverside family lawyer.