How will you meet the adoption expenses incurred along the way? Make use of the credits, benefits, subsidies, and other resources listed below.
Adoption can cost $25,000 to $35,000 or even more, but credits, reimbursements, and other benefits can make your adoption affordable. Here are some of them:
Federal Adoption Expense Tax Credit
For tax year 2014, the federal tax credit to help families cover adoption expenses currently stands at $13,190 per adoption (subject to income limitations). Taxpayers with a modified adjusted gross income (MAGI) on $197,880 or less can claim the full amount. The credit phases out completely at a MAGI of $237,880.
State Tax Credits
Several states have tax credits to help families cover adoption expenses, sometimes restricted to those adopting from that state’s public child welfare system. Contact your state adoption unit for more information…