As we grow older, there can sometimes be problems within the extended family. In my family, the problems started when my brother got married. The moment his wife came into the picture, our family began falling apart. As time went by, we never saw my brother and his wife. Then, our grandfather passed away and everyone came home to say our final goodbyes. The day after the funeral, there was a big blowout between some of the family and it was devastating. It took some convincing, but I managed to talk everyone into attending a few family counseling sessions. I wouldn't say that everything is as it once was, but things are civil again. To find out what we are doing to heal our broken family, visit my website.
Couples unable to have children of their own are often unsure about how they can afford adoption. Fortunately, the federal government offers a tax credit to individuals and families that wish to adopt a child. The Adoption Tax Credit helps offset adoption costs to allow families to better afford adoption, ultimately providing needy children with a permanent family.
Who Can Qualify For The Adoption Tax Credit
If you pay out-of-pocket expenses associated with adopting a child, you qualify. This includes domestic and private agency adoptions, international, and public foster care adoptions. Expenses that qualify are:
Expenses for carrying out a surrogate-type arrangement do not qualify. Adopting a child with special needs through foster care may allow you to claim the entire adoption credit amount. Check with your state to verify the criteria.
How The Adoption Tax Credit Works
When you adopt a child, you can apply the credit toward your tax liability when you file. It is not a refundable tax credit, but it reduces how much you owe for that year's federal income tax. The maximum amount for 2017 is $13,570 per adopted child. Ask your accountant for Form 8839, Qualified Adoption Expenses.
Remember, this is not a deduction that reduces your income to determine your tax liability. It is a tax refund centered on the dollar for dollar decrease of your total tax liability. Essentially, it is $13,570 in your hands to help offset adoption costs. If you do not use the entire credit amount the first year, you can carry it forward up to 5 years until it is all used.
Important Documents For The IRS
In order to receive the tax credit, you must provide the IRS with the appropriate documentation. Make sure you save the following, as well as copies in case they get lost:
Verify that all of your paperwork is signed and dated by the proper authorities or the IRS will not accept them.
With the new 2017 Federal Adoption Tax Credit, hundreds of families are able to afford to give needy babies and children a forever family. For more information, talk to an adoption agency.Share