Federal Adoption Tax Credit

Form 8839

The Adoption Tax Credit for 2012 is currently labeled “non-refundable” which means only the amount of tax you owe for the year 2012 could be recovered.  For example, if you owe $5,235 in taxes for 2012 you would get that amount back from the IRS, not the full $12,650.  However, sometimes lawmakers make changes later on that could affect your adoption in 2012.  Go ahead and claim the full amount on your income tax return.  Keep all receipts and label what each one is for.

For more information, contact your personal tax counselor/advisor.

North American Council on Adoptable Children

Adoption Credit

IRS -Adoption Credit

IRS Form 8839

State Tax Credits

Many states also offer adoption tax credits. Visit your state government’s website and specifically search for “adoption tax credit” or contact your tax advisor to find out if a state tax credit is available in your state.

Employer Reimbursement

For a listing of current employers and the reimbursement, they provide their employees for adoption: http://benefits.adoption.com/

To help establish an adoption-friendly employer where you work: http://www.davethomasfoundation.org/Free-Adoption-Resources/Adoption-Benefits

Adoption Subsidies

http://www.nacac.org/adoptionsubsidy/adoptionsubsidy.html