Monday, December 2, 2013

Start Your Tax Prep Now: Adoption Tax Credits and What it Means for You

Hi Friends,
Some of you who are adoptive parents might be a bit bewildered by the changes in the Adoption Tax credit laws for the 2013.  There are new credits to check into.. and I am NOT a tax guru by any means but basically here is the change: 
"Many potential adoptive parents find that adopting a child can put a strain on family finances. But there are several available adoption tax credits and benefits that offset the expenses of adopting a child.
State and Federal Adoption Tax Credits
Adoptive families can offset their adoption costs by utilizing the Federal Adoption Tax Credit, which is non-refundable. The maximum 2012 adoption tax credit is $12,650. For 2013, the maximum adoption tax credit is $12,970, for all qualifying adoption expenses, and is non-refundable.
In January 2013, the Federal Adoption Tax Credit was made permanent. The adoption credit is not refundable, which means that only those individuals with tax liability (taxes owed) will benefit. The credit will remain flat for special needs adoptions (those involving children who are deemed hard to place by a child welfare agency), allowing those families to claim the maximum credit regardless of expenses."  (http://www.americanadoptions.com/adopt/adoption_tax_credit)

So, if you are in need of some tax information, there is a ton of it out there for those of you who fall into this category.  Here are some links that you may find helpful. 

2013 Adoption Tax Credit Info.
Adoption Benefits: IRS
Adoption Credit and Adoption Assistance Programs: IRS

image: 
License
Attribution Some rights reserved by Philip Taylor PT

1 comment:

  1. It is comprehensive and before TurboTax it took me a full week to prepareour taxreturns. WIth TurboTax it takes an evening.

    ReplyDelete

Adsense