Adoption Credit from IRS – Help with Adoption Expenes

The adoption credit is one of the better credits offered by the IRS. In 2016, the credit is up to $13,460 per child.  The adoption process is usually expensive, but the tax credit can help defer some of the costs.

Qualified adoption costs usually include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses, and other expenses directly related to the adoption. An eligible child must be under the age of 18. However, if the child is physically or mentally handicapped or unable to care for themself, then there is no age limit.

The credit is subject to income limitations. If your modified adjusted gross income (MAGI) is less than $201,920 (2016), the credit is not affected. However, if your MAGI is above $201,920 the credit begins to phase out, and is completely phased out at $241,920.  

For more information about the adoption credit contact Brycast at (512) 293-4170 or through email at service@brycast.com


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