Update on the Federal Adoption Tax Credit

By: - January 16, 2013

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Adoption Tax CreditMany people are wondering about the status of the federal adoption tax credit.  It was set to expire in its current form at the end of 2012, and then revert to an earlier, far less beneficial version of the credit. 

Well, as part of the law that was enacted at the end of 2012 to avert the “fiscal cliff,” the federal adoption tax credit was made permanent.  For 2013, the maximum adoption credit and exclusion is $12,970 per child, and the credit begins to phase out for families with modified adjusted gross incomes above $194,580 (and phases out completely for those with incomes above $234,580).

There are still lots of rules and details you will need to know in order to claim the credit, but you can check out the links below for some helpful information.  Of course, this information is no substitute for good tax advice specific to your situation, so be sure to consult a knowledgeable and experienced tax professional if you have any questions.

Helpful links that spell out many of the details about the federal adoption tax credit:

Adoption Tax Credit on About.com

FAQs from Save the Adoption Tax Credit (http://adoptiontaxcredit.org/)

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