Adoption Tax Credit 2013

The adoption tax credit is a great way to help fund your adoption, though it is often underutilized. Host Dawn Davenport interviewed two of the leading experts on this confusing tax credit: Donald Cofsky, President of the American Academy of Adoption Attorneys; and Josh Kroll, with the North American Council on Adoptable Children.

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Hit the Highlights
  • What is the amount of the adoption tax credit for adoptions in 2013?
  • How does the this tax credit work?
  • How does the tax credit affect withholdings?
  • How can you maximize this amount of tax credit you will get for adoptions finalized in 2013?
  • If you do not use up the adoption tax credit on your 2013 taxes, how long can you carry it over. What is the carry-over or hold-over time frame?
  • If you adopt a sibling set, do you get the credit for each child?
  • Can you apply for the tax credit before the adoption is finalized?
  • How does the adoption tax credit differ for domestic infant adoption, international adoptions, and foster care adoptions?
  • Is the tax credit more for special needs adoptions?
  • Do special needs children adopted internationally qualify as a special needs adoption for the adoption tax credit?
  • Can you file electronically if you are applying for the adoption tax credit on your 2013 taxes?
  • Is money raised through fundraising you do for your adoption treated as income on your taxes?
  • Is money from an adoption grant treated as income or gift on your taxes?
  • Should you stop or cut back on your tax withholding in order to more fully utilize the adoption tax credit?
  • The adoption tax credit form requires a social security number or Adoption Tax Identification Number (ATIN) for the child being adopted. What do you do if you do not yet have a SSN or ATIN when you file your taxes?
  • If you are applying for the credit before the adoption is finalized, perhaps even before the child is born, you will not have a social security number or Adoption Tax Identification Number (ATIN) for the child. Can you still apply for the adoption tax credit or must you wait until you have either a SSN or ATIN?
  • Are birth mother expenses and eligible expense for purposes of the adoption tax credit?
  • Can you apply for the adoption tax credit for money spent on a failed adoption where the birth mother changed her mind and decided to parent?
  • Can you apply for the adoption tax credit for an adoption that ultimately disrupted or dissolved?
  • Are you apply for the tax credit if you adopt a child from an adoption disruption or adoption dissolution where the first set of adoptive parents have already received the credit for the adoption?
  • Does the adoption tax credit apply for grandparents adopting their grandchildren or other relative adoptions?
  • Does the adoption tax credit apply for second parent adoptions for same sex couple or heterosexual couples that are not married or have a civil union?
  • Does the adoption tax credit apply to embryo donation or embryo adoption?
  • What is the prospect that the adoption tax credit will become refundable again?
  • What can we do to help make the adoption tax credit refundable after 2013?