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Will adopting a child have a positive effect on my taxes? |
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When a taxpayer has decided to adopt a child, they not only receive the benefit of claiming an additional personal exemption on their tax return, but certain adoption expenses can be deducted on their tax return. These expenses can be taken in the tax year in which they were paid, even though the adoption was not finalized until a future year. Using IRS Form 8839 - Qualified Adoption Expenses, taxpayers are able to receive a nonrefundable credit of up to $13,170 per adopted child (2010). Some of these expenses include attorney and adoption fees, court costs, travel costs and more. When claiming this credit, the expenses will be deducted on Line 71 of Form 1040. |
