Adoption Tax Credit for adoptions finalized 2014Yesterday was the annual Creating a Family Adoption Tax Credit radio show. We often spend time wishing it was refundable again or wishing it was more, but it occurred to me as I was looking over the emailed questions that were sent in and talking with our guests how truly helpful this tax credit has been in the lives of families and children. We should stop for a moment to be thankful that it exists at all—even in its less than perfect form.

Since it was established in 1997, the federal adoption tax credit has helped thousands of families in the US afford to adopt. This is a good for families and especially good for kids. I’m trying to focus more in my life on the positive, so let me begin my blog with a shout out of thanks for the Adoption Tax Credit.

Changes to Adoption Tax Credit 2014

There have not been any big changes to the adoption tax credit in 2014, other than the amount of the credit and the income limits have been adjusted to reflect inflation. For adoptions finalized in 2014, the maximum adoption credit and exclusion $13,190 per child. The credit will begin to phase out for families with modified adjusted gross incomes above $197,880 and the credit will go away completely for those with incomes around $237,880.

On the show yesterday, we covered who could claim the adoption tax credit, when the expenses had to be incurred, how and what to claim for a failed adoption, and what documentation to submit and how to submit it. Great show! Lots more info on the Adoption Tax Credit can be found on our site. My thanks to Becky Wilmoth, an Adoption Tax Credit Specialist at Bills Tax Service and Josh Kroll, Adoption Tax Credit and Adoption Subsidy Coordinator at the North American Council on Adoptable Children (NACAC).




Is The Adoption Tax Credit at Risk?

The adoption tax credit was made permanent at the beginning of 2013, but it was not made refundable. (It was refundable only for 2010 and 2011.) Although the this credit is “permanent”, it is still at risk of being eliminated completely depending on how and if the US tax code is reformed. The Adoption Tax Credit Working Group, a collaboration of 139 adoption and child welfare organizations including Creating a Family, the national adoption & infertility education and support organization, is working to make sure that the adoption tax credit does not fall victim to tax reform and becomes refundable once again.

Sign up for the Creating a Family weekly e-newsletter to receive information on when we need you to do something to protect the Adoption Tax Credit.

How much money were you able to save with the Adoption Tax Credit?