Is the adoption tax credit available for international adoption as well?

Question

is the adoption tax credit available for international adoption as well as for domestic adoption?

not that this is a really important part of adoption, but it's a good thing to know & process in my mind since i'm considering adoption.

Answer 1

Yes,  I'm not sure how much it is this year.  I think it is over $10,000 but it can be used for both.  I've adopted internationally.

Answer 2

Yes, it is!  You can take it following the year the adoption is final, and carry it over for three years if you don't use all of it the first year.

Answer 3

Absolutely if you make under the required maximum of like $150,000 (this fugure is not right it might be up to $180,000) per year.

As a matter of fact many states also offer tax credits but not nearly as high as the federal credit. Some states offer credits that are smaller but you can use the credit every year until the child turns 18 years of age. Some do require the child to be special needs however, for most internationally adopted children that is not difficult to prove. In my state all internationally adopted children qualify simply because of the lack of medical history and the risk of attachment and bonding issues.

Kim T.

Answer 4

Yes, the adoption tax credit is available for all adoptions.  However, you cannot use it until the adoption has been finalized by the courts.  

You will also need to obtain an adoption tax ID # for your child, if they do not have a Social Security Number.  Our son had a social security number issued, but we were never given that information - as the biological mother would not provide it to us.  We felt it was in our son's best interest to apply for a new social security number for him, but in the meantime, we had to use the adoption tax ID #.  

Good luck to you.

Answer 5

Yes, it's slightly over 10,000. You can use it the year your adoption is finalized. There is a rumor that it will end in about 3 years, so research when you get closer to adopting. You can take the deduction to cover a successful adoption...if say, you have 1 that fails you cannot take the deduction, have a successful adoption and take it again. It's 1 deduction per successful attempt. You do not have to itemize, but save reciepts in case of audit. For special needs adoptions you can take the whole credit even if you don't spend the full amount. For nonspecial needs, you can only claim up to what you spent. If you recieve any assistance from your job toward your adoption, you will have to report that to the IRS.

http://www.irs.gov/taxtopics/tc607.html

Answer 6

Yes, however with International you cannot use the credit until after the adoption is finalized, so it cannot be used for expenses incurred if (Universe forbid) you experienced a disruption..

Answer 7

Yes, it can.  Also, for the 2007 tax year, it has been increased to $11,390 to adjust for inflation.

That's really going to help us when we file our taxes next year!