One question I get a lot from folks considering adoption is, "what about the adoption tax credit?" Well, the Christian Alliance for Orphans announced that the IRS issued guidance today on the current tax credit available for your 2010 return. You can read CAO's article here, outlining some of the confusion and benefits of the current tax law. Among the highlights of the Affordable Care Act, according to the article:
1) The amount of the credit is up to $13,170.
2) The credit is refundable. This means that even if you don't have a tax obligation for the 2010 tax year, if you are otherwise eligible with eligible adoption expenses, you may still get the money back.
3) Eligible creditable expenses include reasonable and necessary expenses of a legal adoption, including adoption fees, court costs, attorney's fees and travel.
Fine print: I was not able to find the new guidance bulletin myself on the IRS site. So I don't know exactly what it says. I am not a tax attorney or tax professional, and nothing in this site should be construed as legal advice. Please consult your tax professional of choice for advice in how you should make the most of available tax credits. I know I will.
~Katie
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