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adoptive tax credit?????

Posted by on Jul. 5, 2009 at 11:21 PM
  • 3 Replies

Has anyone used the adoptive tax credit? Do you actually get the money back? How does it work????

by on Jul. 5, 2009 at 11:21 PM
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by on Jul. 6, 2009 at 12:00 AM

I can't use it because we had a stepparent adoption which sucks.  But here is some info on it -

If you had adoption-related income and/or expenses, any one or a combination of benefits, credits and exclusions could substantially reduce your tax liability.

NOTE: The tax credit does not cover expenses for adoption of a spouse's child (stepparent adoption).

The Adoption Tax Credit is a valuable benefit for adopting families, but one of the most complicated tax law provisions applicable to middle-income families. The details of how it works, acceptable expenses, who qualifies, and other "small print" items have been harder to understand.

  • The tax credit applies to domestic and international adoptions, but the procedure is not the same. Credit for expenses for international adoptions can be claimed only after finalization; for domestic adoptions, the credit can be applied even if the adoption does not go through.
  • The full credit can be taken for domestic special needs adoption even when the qualifying expenses don't reach that limit.
  • The credit of $10,960 is per child, not per year, so even if you claim expenses paid out over more than one year for one adoption, the total credit amount remains $10,960.

Form 8839 is the form you need to file. The form will include expenses covered by the Adoption Tax Credit, any payments or reimbursements you may have received from Employer Adoption Assistance Benefits, and your child's Social Security or Tax ID number (required for filing).

Many states provide reimbursement of a certain amount of non-recurring adoption expenses.

by Gold Member on Jul. 6, 2009 at 9:51 AM

The adoption tax credit works differently for the different processes...

With an international adoption it is valid the year that it is finalized. For instance, we began our process to adopt from China in 05' and our dd came home 4/14/07. When we filed our taxes, we took all of our receipts, her SS card, and we were able to claim the whole credit. At that time it was $11,360.( it goes up every year, but will phase out in 2010 unless they extend it again)

Our tax return that year was over $17K. ( of course, dh makes 6 figures on his own, and we do a ton of charity,and have a lot of deductions)

For a domestic adoption the baby has to be in the home the entire year. This prevents multiple people from claiming the child on taxes. So, the baby can't come home in September and the parents file for the credit on taxes.

You can talk to a CPA or go to to see how it works.The credit goes towards your AGI, so you may or may not be able to get the entire credit. Most people only get a portion of the credit.


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