How does the 10,000 dollar special needs adoption tax credit work?
In the next year or two I am planning on adopting a special needs child. How does the 10,000 dollar speciall needs adoption tax credit work? I’ve read I get a flat 10K regardless of expenses. Is this true? Is there anyone in the know here about special needs adoption. Please only reply if you really know and not on how you think it works…. thanks.
More info:
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For further information:
- Special Needs Adoption - Benefits Of Adopting A Special Needs Child
- Kazakhstan Adoption - Michael’s Story
- Chinese Adoption for Jairus Cheng Yu
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- Hello, Kazakhstan. Adoption | Children | New Family
- Machado Ventura Praises Work of Electoral Authorities
It’s not just for special needs, it’s any adoption.
Here is a good link:
http://adoptionblogs.typepad.com/adoption/2004/11/the_federal_ado.html
I just did it for my adoption. My understanding is that the credit is for money spent, so if you spend 5,000 you can get a 5, 000 deduction, not the full 10,000. I do know if you don’t need the full tax credit one year that you can apply it over several years until you use it all. Also check out the IRS website…the tax credit recently increased. I did my own taxes on Turbo Tax delux and it walked me right through it. You can only get the tax credit the year the adoption is completed though. So, if you have some expenses this year and the adoption takes 2 years then you have to wait to claim the expenses. Actually, they make you wait until baby has a social security number or temp. tax ID number AND adoption is complete. Good Luck!