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Natural Awakenings Chicago

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.

Law Offices of Sally Wildman are located at 200 N. LaSalle St., Ste. 2750, in Chicago and in Northbrook by appointment. For appointments, call 312-726-9214 or email [email protected]. For more information, visit SWildmanLaw.com.