Adoption Tax Credits Changed for 2013
Maximum Adoption Tax Credit projected to be $12,770 for 2013. Credits will no longer be refundable, but unused part will carry forward to future years.
To Get the Credit You Must Have:
- Domestic and foreign adoptions that have been finalized.
- For a domestic or foreign adoption finalized in the U.S. you need:
- An adoption order or decree.
- For a foreign adoption governed by the Hague Convention and finalized in another country you need:
- A Hague Adoption Certificate (Immigrating Child),
- An IH-3 visa, or
- A foreign adoption decree, translated into English.
- For a foreign adoption from a country that is not party to the Hague Convention you need:
- A foreign adoption decree, translated into English, or
- An IR-2 or IR-3 visa.
For Domestic Adoptions that are not Final You Must Have:
- Be sure to keep copies of items listed below for your records as proof if questioned.
- An adoption taxpayer identification number, obtained by the taxpayer for the child, included on the taxpayer’s income tax return
- A home study completed by an authorized placement agency,
- A placement agreement with an authorized placement agency,
- A document signed by a hospital official that authorized the release of a newborn child from the hospital to the taxpayer for legal adoption,
- A court document ordering or approving the placement of a child with the taxpayer for legal adoption, or
- An original affidavit or notarized statement signed under penalties of perjury from an adoption attorney, government official, or other person, stating that the signor:
- Placed or is placing a child with the taxpayer for legal adoption, or
- Is facilitating the adoption process for the taxpayer in an official capacity, summarizing the facilitation.
For more details check out the IRS website directly.