Tax Deductions and Credits for Adoption Expenses 2011, 2012

There are income tax deductions available for adoption expenses as well as tax credits. Adoption of a child under 18 qualifies as long as they were 18 and under for at least part of the year or you have adopted a mentally or physically disabled person.

Qualifying Expenses

Adoption expense deductions include any necessary attorney fees, adoption fees, courts fees, and travel expenses. There are also some additional expenses if you have adopted a foreign child. You may not deduct expenses if you have received funds from a state, federal, or local program.

Employer-Provided Adoption Benefits

Some employers offer an adoption assistance program. In order to be able to deduct adoption expenses through an employer provided benefit program, your salary must have been reduced to cover these expense or you must have adopted a special needs child.

Adoption Tax Credit

You may also be able to claim an additional tax credit if you have met all of the three following statements:

• You have filed single, married filing jointly, head of household, or as a qualifying widower.

• Your average gross income is less than $210,820.00.

• You have reported all the necessary information about the qualifying child.

If you have filed your return as married filing separate you may also be eligible for this credit as long as you meet all of the following criteria:

• You and your spouse have lived separately during 6 months of the filing year

• The child lived at your residence for more than half of that year

• You provided more than half of care and cost of child

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