Through this federal government adoption tax credit you may get up to approximately $12,000 of the money you spent in the adoption process returned to you. This adoption tax credit is better than a tax deduction since it is based on after tax money. The adoption tax credit is available in the year the adoption is finalized. The adoption tax credit does have an income phase-out depending on your level of income. The Federal adoption tax credit is part of the Economic Growth and Tax Relief Reconciliation Act of 2001. It is advised you check with your attorney and/or your accountant on this adoption tax credit. Also visit the link Federal Adoption Tax Credit for Special Needs Adoption.
The link Tax Benefits for Adoption from the U.S. government website is helpful.
Where Can I Find Additional Sources of Information?
Click the following link for more information on more Financial and Medical Assistance Programs for Adopting Families.