Adoption tax credits may be available to defray some adoption costs. Prospective
adoptive parents can find information about tax rules regarding adoption at the
IRS website. Additionally, several states have enacted state tax credits for
families adopting children from the public child welfare system in that state.
Some are restricted to adoptions from foster care, while others are not.
The adoption tax credit applies to all international and domestic adoptions. Ukrainian adoptions fall under the international domain so the information below
only applies to international adoptions. Additional Information on domestic
adoption credits can be acquired from the IRS.
Adoption tax credits are claimed only after your adoption is finalized in
Ukraine.
You may be
able to take a tax credit of up to $10,630 for qualifying expenses paid to adopt
an eligible child. Your credit is reduced if your modified adjusted gross income
(AGI) is more than $159,450. You cannot take the credit if your modified AGI is
$199,450 or more.
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Embrace A Child - Ukrainian Adoptions LLC. strives to streamline the adoption process by making it as a predictable,
comfortable, and as stress-free as possible.
Let us help you
begin your journey of completing your family.
Thank you for visiting our web site.
Roman Kwit, Adoption Facilitator Specialist
(office) 330-659-2123
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Qualifying
expenses
Qualifying
adoption expenses are reasonable and necessary expenses directly related to, and
whose principal purpose is for, the legal adoption of an eligible child. These
expenses include:
·
Adoption fees,
·
Court
costs,
·
Attorney
fees,
·
Traveling
expenses (including amounts spent for meals and lodging) while away from home,
and
·
Re-adoption
expenses to adopt a foreign child.
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Non qualifying
expenses
Qualifying
adoption expenses do not include expenses:
·
That
violate state or federal law,
·
For
carrying out any surrogate parenting arrangement,
·
For the
adoption of your spouse's child,
·
For which
you received funds under any federal, state, or local program,
·
Allowed as
a credit or deduction under any other federal income tax rule, or
·
Paid or
reimbursed by your employer or any other person or organization.
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Eligible
child
The term “eligible child” means any individual:
·
Under
18 years old, or
·
Physically
or mentally incapable of caring for himself or herself.
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How to take the credit
To take the credit, you must complete Form 8839 and attach it to your Form 1040
or Form 1040A. Enter the credit on Form 1040, line 53, or Form 1040A, line 34. |
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Foreign child
If the child is
not a U.S. citizen or resident at the time the adoption process began, you
cannot take the credit unless the adoption becomes final. You treat all adoption
expenses paid or incurred in years before the adoption becomes final as paid or
incurred in the year it becomes final.
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When to take
the credit
Generally, until the adoption becomes final, you take the credit in the year
after your qualified expenses are paid or incurred. See the instructions for
Form 8839 for more specific information on when to take the credit
http://www.irs.gov/pub/irs-pdf/i8839.pdf.
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