Adoption Tax Credit

Adoption Tax Credit Increase
Effective January 2002

• This new law indicates that, for most adoptions, the adoption tax credit will amount to the lesser of the amount of qualifying adoption expenses paid or $10,000.  

• If taxpayers receive adoption benefits from an employer, those benefits will be excluded from gross income for tax purposes, up to the lesser of qualifying adoption expenses or $10,000.

• The tax credit will begin to phase out for people with modified adjusted gross income of $150,000 and over.

• There is a carryover provision that allows unused credit to be taken for up to five years.

WORLDWIDE Adoption Services, Inc

Montgomery Building, Suite 436, 187 North Church Street, Spartanburg, South Carolina 29306
Phone 864-583-6981    Fax 864-583-0150