Tax returns for 2006 are due tomorrow. For those who will be finalizing their adoptions in 2007 there's some good news; the Federal government has increased the Adoption Tax Credit to $11,390 for people whose adoptions are completed this year.

"The... maximum is the amount of qualifying expenses taken into account over all tax years. If you've been trying to adopt the same child for more than one year, your credit will be reduced by the amount of expenses taken into account in previous years for the same adoption effort."

Though you should consult a tax professional, the above rule typically only applies to domestic adoptions. If the child you're adopting is a U.S. citizen, you can claim deductions before the adoption is final. With most foreign adoptions, however, you have to wait until the entire process has been completed. Read more at LauraChristianson.com.

Labels: adoption_costs, tax_deductions