Adoption Tax Credit Reminder

We have covered the Adoption tax credit in detail on this blog before, so this is more of a refresher for those that need more information on the adoption tax credit.

NJ Today recently published this article which highlights six important aspects for adoptive parents to remember about the adoption tax credit.

As Adoption STAR mentioned in past blog posts, if you adopted in 2010 or 2011 you can be credited as much as $13,170 from “qualified adoption expenses.” The article defines qualified adoption expenses as “reasonable and necessary expenses directly related to the legal adoption of the child who is under 18 years old, or physically or mentally incapable of caring for himself or herself.” According to the article, these expenses can be adoption fees, court costs, attorney fees and travel expenses.

Many adoptive parents have filed for this tax credit and have been waiting for their claim, and this is because the IRS is reviewing all of the cases to “safeguard against improper claims” according to the article. However, if you are expecting a refund for more than the adoption credit, you will receive this part of your refund while your adoption tax credit application is being reviewed.

For more information on the Adoption tax credit speak to your Adoption STAR family advocate as well as a tax professional.