For many loving and able parents, money is the biggest obstacle to overcome when they’re considering adoption. The U.S. government offers a tax credit aimed at helping potential adoptive parents, and improvements to the credit have recently been made.

“With the new changes, if your adoption costs exceed the allowable limit, the difference will show as a credit on your income tax. An additional benefit is that the tax credit is reimbursed dollar for dollar. You can also take the credit if the adoption isn’t finalized. The credit can be carried forward for up to five years, if need be, or until it’s used, whichever comes first.” [Source: PR Web]

In addition, the tax credit has been extended to December 2011, and the changes have been made retroactive to January of this year.

Labels: laws, tax_deductions

Posted By: Stefanie Hamilton