IRS Credit Check - Credit for Adopting a Child | News

The following is a Press Release:

Here is today’s Tax Credit Check. If you adopted a child in 2011 or in the process of adopting in 2012, you may qualify for a credit to help save money at tax time.  Here are eight facts to know about the Adoption Credit.

Check One: In 2011, if you adopt an eligible child (including a child with special needs), you may be able to take a refundable tax credit for qualifying expenses.  This means you can benefit from this credit even if you owe no tax.

Check Two:  In 2012, if you adopt an eligible child (including a child with special needs), you may be able to take a non-refundable tax credit for qualifying expenses.  For 2012, the credit can not reduce your tax below zero.  Any excess credit will not be refunded but must be carried forward.

Check Three: For 2011, the maximum adoption credit per child is $13,360.

Check Four: For 2012, the maximum adoption credit per child is $12,650.

Check Five:  If your filing status is married filing separately, you can take the credit only if you meet special requirements.

Check Six:  Qualified adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child. These expenses may include adoption fees, court costs, attorney fees and travel expenses.

Check Seven:  Income limits and other special rules apply. 

Check Eight:  Attach all the required documentation such as an adoption decree or subsidy agreement to your return.  If you don’t attach the required documentation, your refund will be delayed

For more information see the Adoption Credit FAQ page available on IRS.gov or the instructions to IRS Form 8839, Qualified Adoption Expenses,