Changes to the Adoption Tax Credit for 2018
We now have information on the changes to the Adoption Tax Credit for adoptions finalized in 2018 (and usually claimed on taxes in 2019).
The adoption tax credit for adoptions finalized in 2018 is up to $13,810 per child.
This is a non-refundable tax credit, which means that you must have federal tax liability in order to claim the credit. You have five years to use the full amount of credit to reduce your federal tax liability.
If your modified adjusted gross income is greater than $247,140 in 2018, you cannot claim the Adoption Tax Credit. Those with incomes from $207,140 to $247,140 can claim only a part of the credit.
Families that adopt a child with special needs from foster care, which means any child that receives a monthly adoption subsidy from the state (90%+ of children adopted from foster care), do not have to have paid anything for their adoption in order to receive the full the tax credit. With domestic infant and international adoptions, adoptive parents must be able to document qualified adoption expenses.
Stay Tuned for the Creating a Family Adoption Tax Credit 2018 Guide which will be published in January 2019. To get more information on this Guide and all the new resources we create, sign up for our weekly e-newsletter.
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