TAX TIP OF THE DAY... IRS is generous with ADOPTION credit
Adopt a child and receive one of the largest tax breaks in the IRS code... the Adoption Credit.
1) An adoption credit of up to $13,400 is available in 2015.
2) The credit is limited for taxpayers with income over $201k.
3) Qualifying expenses include... adoption fees, attorney fees, court costs, travel, lodging and meals.
4) You can not use... expenses to adopt a spouse's child, surrogate parenting costs, costs reimbursed by others, illegal payments.
5) Eligible child... any child under age 18, a disabled person of any age.
6) Special rules for special needs adoptions.
1) If the adoption WAS NOT FINALIZED in 2015, you claim 2015 amounts paid on the 2016 tax return.
2) If the adoption was FINALIZED IN 2015, you can claim 2014 and 2015 amounts paid on the 2015 tax return.
SHARE WITH A FRIEND.
If you need a tax appointment... www.baboiancpa.com