Tax Benefits for Adoption
There are two important tax breaks for adoptive parents in 2008: an exclusion of up to $11,650 ($12,150 in 2009) paid under an employee benefit plan that pays for adoption expenses, and a tax credit for up to $11,650 ($12,150 in 2009) for expenses that were not reimbursed by your employer. The $11,650 amount also applies for adoptions of children who are U.S. citizens or residents, and are determined to be special needs children by a state.
However, both tax breaks begin to be phased out for those with adjusted gross income (AGI) over $174,730 in 2008 ($182,180 in 2009). If your AGI is $214,730 or more ($222,180 in 2009), you can't claim any tax benefits for adoptions.
For more information, check out the following:
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