The Adoption Tax Credit Rises to $11,390
Parents who finalized an adoption last year may claim a maximum credit of $11,390 for adoption expenses on their federal income tax returns. The tax credit phases out for taxpayers with high modified adjusted gross incomes.
The adoption tax credit is set to expire in 2010, but there is much legislative support for making the credit permanent.
Adoption related fees such as court costs, attorney fees, travel expenses, country fees, and other fees that are directly related to the adoption are all qualifying expenses. Adoptive parents who plan to claim the credit should file Form 8839, titled Qualified Adoption Expenses, and attach it to Form 1040.
For more information on the adoption tax credit please visit the IRS website and Adoption Learning Partners.
