Congress recently enacted a tax credit aimed at helping ease the financial burden of adoption. Though the credit applies to both foreign and domestic adoptions, parents adopting domestically may get the credit sooner.

"People who adopt in the USA can claim a credit for adoption-related expenses in the year the adoption is completed or the year after they apply, even if it is still pending. But parents who adopt a non-U.S. child can claim the credit only in the year the adoption is completed."

Because of increased regulations in many countries, foreign adoptions take longer than they used to. Additionally, an unsuccessful foreign adoption isn't eligible for any portion of the credit, while an unsuccessful domestic adoption may be. Source: USA Today

Labels: financial_assistance, tax_deductions

Posted By: Aspen Education Group