Tax Benefits for Adoption
There are two important tax breaks for adoptive parents: an exclusion of up to $10,000 paid under an employee benefit plan that pays for adoption expenses, and a tax credit for up to $10,000 for expenses that were not reimbursed by your employer. Beginning in 2002, the $10,000 amount also applies for adoptions of children who are U.S. citizens or residents, and are determined to be special needs children by a state.
However, both tax breaks begin to be phased out for those with adjusted gross income (AGI) over $150,000 in 2002 through 2010. If your AGI is $190,000 or more, you can't claim any tax benefits for adoptions.
For more information, check out the following:
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