Best of all, most people qualify!
Imagine having upwards of $30,000 in tax credits and deductions to help pay for the cost of your adoption. Believe it or not, depending on your financial standing and where you happen to live, you can receive that level of support from the government. And there may be even more support available from your employer.
Take advantage of the federal tax credit - $12,650 is now available.
The Federal Adoption Tax Credit is an ideal way to help pay for adoption-related expenses. And, a $12,650 tax credit has been approved for 2012. For more information contact a tax professional or the IRS.
State tax credits and deductions can offer up to $20,000 of support.
Of course the exact amount you qualify for depends on where you live and your tax treatment. Below is a partial list of states offering adoption tax credits and deductions. For complete information contact your tax professional, the IRS or your state taxing authority.
Arizona: A $3,000 Tax Deduction Cap is offered.
California: Tax credit is contingent on overall expenses.
Iowa: A deduction may be taken in the year the expenses are paid, even if your child is not placed with you during that same year or if the adoption does not occur.
Kentucky: You may claim up to 25% of the Federal Tax Credit.
Mississippi: You may apply for up to a $2,500 tax credit in the year your adoption is finalized.
Missouri: All credits are paid on an apportioned basis with amount contingent on the number of applicants.
Montana: A $1,000 tax credit is available in the year your adoption is finalized. One credit per child.
North Dakota: A $1,750 tax credit is available for a child who was adopted during that tax year.
Ohio: A $1,500 tax credit is offered during the year your adoption is finalized. Any unused amounts may be carried forward for up to two years.
Oklahoma: Residents may deduct nonrecurring adoption expenses not to exceed $20,000 per calendar year.
South Carolina: There is a $2,000 tax deduction allowed for special needs adoptions.
Utah: Residents who adopt a child with special needs may claim a refundable credit of $1,000 for each child adopted during the tax year the adoption is finalized.
West Virginia: A one-time tax credit of $2,000 is available upon the adoption of your child.
Wisconsin: You may subtract up to $5,000 of adoption expenses from your taxable income during the year your adoption is finalized.
Your service allows you to qualify for additional support.
Active duty service-members in the Armed Services, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration are eligible for reimbursement up to $2,000 for certain qualifying expenses. For more information contact your commanding officer or The National Military Family Association at (703) 931-6632.
Your employer may also help.
Contact your Human Resources Department to see if benefits are offered to help with adoption related expenses. Many companies offer financial support…and legal services…that can help offset the cost of adoption.