Friday, June 24, 2011
The US Tax Refund for Adoption
Now is the time to adopt. In fact, for 2011 and 2012, the tax refund is pretty impressive. It's not a tax deduction, it's a refund. Which is much, much better.
Now, by the year 2013, the powers that be are predicting that the tax refund will decrease. So, again. Now's the time.
Here's the deal:
You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption. The amount of the tax credit you qualify for is directly related to how much money you spent on adoption-related expenses. If you adopt a special needs child, however, you are entitled to claim the full amount of the adoption credit, even if your out-of-pocket expenses are less than the tax credit amount.
You may claim an adoption credit of up to $13,360 (for tax year 2011) per eligible child.
Adoption Tax Credit Amounts
2013: $5,000 or $6,000 for a special needs child (projected)
2012: at least $12,170 (will be indexed for inflation), non-refundable
2011: $13,360 (will be indexed for inflation), refundable