2003 Tax Benefits for Adoption
The tax benefits for adoption are numerous and a bit complicated.
This year adoptive parents may be able to take a tax credit of up to $10,160 for qualifying expenses paid to adopt an eligible child. Also, up to $10,160 paid or reimbursed by an employer for qualifying adoption expenses under an adoption assistance program may be excludable from gross income. Adoptive parents may claim both a credit and an exclusion for expenses of adopting an eligible child.
Finally, beginning in 2003, the maximum credit and exclusion of $10,160, subject to certain income and tax liability limits, will be allowed for the adoption of a child with special needs even if the adoptive parents do not have ANY qualifying expenses. This “refundable credit” has long been sought by adoption advocates.
Read all about these important adoption tax benefits and pass this information along!