One of the first questions many families have during the adoption process is associated with its cost: How much income do you have to make to be able to adopt a child?
Adoption can be expensive, for many reasons. That is why many families turn to fundraising to help with the costs.
As the tax reform bills enter a conference committee, make your voice heard to help preserve the current tax breaks for employer-provided adoption benefits.
What are the different benefits you can receive from your employer if you adopt a child? Benefits will vary, but here are three types you might expect.
Pressure from constituents like you has led lawmakers to reinstate the adoption tax credit in the new tax reform bill. Take the time to thank your representatives today!
The Republicans’ new tax plan will eliminate the federal adoption tax credit. Contact your representative today to change this and help other adoptive families.
Do you know if your state offers a separate adoption tax credit or reduction? Find out here and, if they don’t, contact your representative today.
The Federal Adoption Tax Credit is vulnerable and may be eliminated as part of tax reform — and we need your help to save it!
Share these 10 creative ways to finance your adoption costs with someone who’s in the process of adopting!
With tax season around the corner many of our families are wondering what the Adoption Tax Credit is and how it works. Below we have provided a brief explanation of the Adoption Tax Credit, the updated amount available to families for the 2016 tax season, and an infographic to help families understand how the Adoption Tax Credit works.
What is the Federal Adoption Tax Credit?
The Federal Adoption Tax Credit can help families offset the costs of qualifying adoption expenses, making adoption possible for some families who could not otherwise afford it. Families who adopted a child, or tried to adopt a child, and paid qualifying expenses may be eligible for the credit.
With the passage of the American Taxpayer Relief Act of 2012 the Adoption Tax Credit became a permanent part of the tax code. However, the tax credit is not refundable, which means that only those individuals with tax liability (taxes owed) will benefit.
The maximum adoption tax credit for 2016 is $13,460. The Adoption Tax Credit limit is based on modified adjusted gross income (MAGI) and is recalculated each year based on current cost of living. For the 2016 Adoption Tax Credit, the maximum amount available will begin to phase out for families with MAGI above $201,920 and will be unavailable to families with incomes around $241,9200 or above.