Financing Your Adoption: The Adoption Tax Credit

Parents who finalized an adoption in 2008 may qualify for a maximum adoption tax credit of $11,650 for adoption expenses on their federal income tax returns. The credit begins to phase out if you have a modified adjusted gross income of $174,730 or more and is completely phased out if you have a modified adjusted gross income of $214,730 or more.

Families who have experienced a disrupted adoption (an adoption situation that did not end in a completed adoption) may also benefit from the adoption tax credit. Any family that qualifies for the adoption tax credit may also deduct qualifying adoption expenses from a disrupted adoption. Please speak to your tax accountant regarding claiming this credit for a disrupted adoption.

For adoptions finalized in 2009, the tax credit has risen to $12,150. The 2009 credit will begin to phase out with a modified adjusted gross income of $182,180 and will completely phase out at a modified adjusted gross income of $222,180 or more.

To learn more about the adoption tax credit, visit http://www.irs.gov/taxtopics/tc607.html.

Financing Adoption

HANDinHAND program helps families afford adoption

Families looking for ways to help offset the costs of their adoption now have a new option.

HANDinHAND Christian Adoption, Inc. is a 501(c)(3) private operating foundation that was formed with purpose of helping children and Christian couples through the miracle of adoption. The organization provides matching grants to couples to help offset the cost of their adoption.

Adoptive couples who have a completed, approved home study must first contact Hand in Hand to apply for the matching grant. If a grant is awarded, the family writes letters to their friends and family about their intentions to adopt and the associated costs. Those friends and family are then able to make a tax-deductable donation to HANDinHAND to help the family with their adoption expenses. HANDinHAND will then match those funds dollar for dollar up to the total grant awarded. HANDinHAND then pays the adoption agency or lawyer directly.

To learn more about HANDinHAND, or to apply for a grant, visit www.handinhandadopt.org.

American Adoptions Announces New Foster Care Partnership

In addition to helping families and children through traditional domestic adoption, the adoption of children within the state's foster care system has long been in the heart of American Adoptions.

Our founders, Ted, Susan and Scott Mars, are not only an adoptive family, but they also served as a temporary home to over 150 children in Kansas' foster care system.

Our agency provides extensive lobbying efforts to improve the adoption laws in our home state of Kansas. As a result, we have numerous contacts with the state of Kansas and the organizations that help children in the Kansas foster care system.

In 2009, you will begin to notice biographies on children in Kansas foster care, which will be placed on our Web site, www.americanadoptions.com, along with information directing families where to call if interested in adopting one of these children.

Helping Children in Kansas Foster Care Jaymes, 10 Male Caucasian KVC Reference #7591 Polite, respectful, and friendly are words used to describe Jaymes. He also has a good sense of humor. Jaymes likes to play games on the computer and loves to draw. He is interested in cars, too. James has two older sisters he would like to maintain contact with, but he can be adopted alone. Jaymes will benefit from a family who can provide structure and consistency and help him to appropriately express his feelings. Jaymes would like to live in a city, and would enjoy having a sister in his Forever Family. Contact information for families who inquire about these children: Toll-free telephone number - 888-655-5500 E-mail - adoptionspecialist@kvc.org Website -www.kvc.org/Meet Kansas Kids

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