If you are adopting in 2018, we have great news to share! Earlier this year, there was the possibility that the Adoption Tax Credit would be removed from the tax plan beginning in 2018. Thanks to the efforts of the Academy of Adoption & Assisted Reproduction Attorneys and Save the Adoption Tax Credit organization, the Adoption Tax Credit was saved!
The tax credit has been part of the tax code since 1998 to help lessen the tax burden for families adopting children. It has been a great financial help to adoptive families, and we are thrilled to see it will continue to assist families in 2018.
Per the Internal Revenue Service, the maximum credit for 2018 will be $13,840 per child. The credit will begin to phase out for taxpayers with Modified Adjusted Gross Incomes of $207,580 or more and will be completely phased out for taxpayers with Modified Adjusted Gross Incomes of $247,580 and above. The Revenue Procedure can be found here. Please check with your own tax preparer to be certain that you qualify for and receive all of the benefits of this credit.
You can read more about the tax credit efforts below:
- Save the Adoption Tax Credit Working Group Statement on House and Senate Tax Reform Bills
- How Parents Foiled a US Republican Tax Proposal to Kill the Adoption Tax Credit
- The Academy of Adoption and Assisted Reproduction Attorneys
MYERSSTRICKLAND, PLLC and its staff are not tax or accounting professionals. We do not provide tax or accounting advice. This information is for informational purposes only and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisors before claiming this credit.