Some Random Adoption Tax Credit Infomation

The information below was reproduced directly from a newsletter received from the North American Counsel on Adoptable Children (NACAC).  They have a lot of great information to share.  Visit the NACAC Website and be amazed at the information available!


If you have experience with the Adoption Tax Credit, it would be great if you would post a comment below.  Anything we can do as an Adoption Group (FSA) to help each other benefits adoption in general.  We would love to hear your stories and experiences with the Adoption Tax Credit and also your ideas on creative ways to fund an adoption.



Play Your Part in Regard to the Adoption Tax Credit: Join with adoption organizations, state agencies, adoptive families, advocates, and other interested parties to raise visibility of the adoption tax credit. Help spread the word collectively, through website postings, e-mail blasts, newsletters, social media, and other informational outlets, so eligible families that may not be aware of this benefit can be sure to access the credit. Families who adopted as far back as 2005 may still benefit if they haven’t already.

The Facts:

• Since 2003, families who adopted a U.S. child with special needs from foster care could claim a federal adoption tax credit even if they had no adoption expenses (as long as their income was below the fairly generous income requirements).  
• Children who receive adoption assistance/subsidy benefits are considered children with special needs. Even families who receive a deferred subsidy ($0 per month but medical coverage through the subsidy program) are eligible.
• All adoptive families (except those who adopted a step-child) are eligible for the credit, but those who adopt children other than those with special needs must have—and be able to document, if requested by the IRS—qualified adoption expenses.
• For 2010 and 2011 the credit was made refundable. If parents who adopted as long ago as 2005 had credit to carry forward into 2010, that amount of the credit also became refundable. In 2010 and 2011, parents can claim the credit even if they don’t have income or any tax liability.

The amount of the credit for 2011 is $13,360 per child.

The Information:

• NACAC Tools & Resources: http://www.nacac.org/taxcredit/taxcredit.html
• IRS Form 8839 Instructions: http://www.irs.gov/pub/irs-pdf/i8839.pdf
• IRS Form 8839: http://www.irs.gov/pub/irs-pdf/f8839.pdf
• IRS adoption tax credit FAQs: http://www.irs.gov/individuals/article/0,,id=231663,00.html   
• Voice for Adoption’s distributable postcard: http://voice-for-adoption.org/adoption_tax_credit