Adoption Tax Credit Update for 2018
Mar 28, 2018 08:33PM
Thanks to broad-based support and intense contacts with members of Congress last fall, the recently amended federal tax currently includes permanent federal adoption tax credit benefits for adopting families.
These benefits include a federal tax credit for qualified adoption expenses incurred in adopting an eligible child. In some cases, this benefit may include expenses for a failed adoption. The full credit amount can be claimed for families that adopt a state-qualified special needs child.
Another key benefit that was continued in present tax law is an exclusion from taxable income for employer-provided adoption assistance received by an adopting family. The IRS has issued 2018 maximum income tax credit per child and maximum exclusion from adopting family income amount; the maximum amount for both is $13,840, with phase-out range for both. The maximum amount of these benefits is adjusted yearly.
When preparing to adopt a child, a key step is to consult with a tax adviser to determine applicable tax credits for the family.
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