| You might qualify for a tax credit on expenses made | | | | limit for a specific year must be reduced by the |
| in the adoption of a child. For expenses incurred prior | | | | amount of qualifying expenses taken into account in |
| to the year of adoption, the credit is generally allowed | | | | previous years for the same adoption effort. |
| the year following the adoption. In the event that the | | | | The income limit on the adoption credit or exclusion is |
| expenses were incurred the same year as the | | | | based upon your Adjusted Gross Income. |
| adoption was finalized, you might be able to claim the | | | | 1. If your Adjusted Gross Income falls short of the |
| credit for that year. This can be in addition to any | | | | beginning phase-out trigger for that year, your income |
| adoption expenses incurred in the year prior to the | | | | level will not affect your adoption credit or exclusion. |
| finalization of the adoption. Reimbursed expenses do | | | | 2. If your Adjusted Gross Income is higher than the |
| not qualify for the adoption credit. | | | | phase-out trigger for that year, your adoption credit or |
| For both - a credit or exclusion some of the qualifying | | | | exclusion will be reduced to that extent. |
| expenses might be things like attorney's fees, court | | | | 3. If your Adjusted Gross Income is higher than the |
| costs, adoption fees, traveling expenses, and any | | | | phase out trigger for that year, your adoption credit or |
| expenses incurred as the direct result of adopting an | | | | exclusion will be disqualified. |
| eligible child. | | | | Usually, you must file jointly, if you are married, to take |
| An eligible child must be under eighteen years of age, | | | | the adoption credit or exclusion. Only under special |
| or physically incapable of caring for themselves. The | | | | circumstances can you receive an adoption credit or |
| adoption credit or exclusion cannot be claimed for a | | | | exclusion should you file separately. |
| child who is not a United States citizen, unless the | | | | Adoption credits and exclusions are complicated bits |
| adoption is finalized. A taxpayer may be able to take | | | | of tax regulations. If you have gone to the care and |
| an increased credit or exclusion for the adoption of a | | | | initiative to adopt a child, it is recommended that you |
| child with special needs. The adoption credit and | | | | hire a tax attorney or consultant to help you apply |
| exclusion are both subject to dollar and income limits. | | | | equal care and determination in filing for your adoption |
| The dollar limit is applicable for each attempt at | | | | tax credit or exclusion. |
| adoption of an eligible child during that year. The dollar | | | | |