Adopting a child is an incredible experience that some parents in North Dakota have experienced firsthand. Adoption allows a child to be provided for by loving parents. It also allows a couple or an individual the chance to experience the unique bond that parents and their children possess. While the upsides to adoption are seemingly endless, there is one downside: the cost.
Adoption is an expensive undertaking that can cost tens of thousands of dollars. In many cases you have to travel for interviews and the actual adoption, and then there are the adoption fees. While many parents feel that the cost is worth the end result, there’s not doubt that it can cause some financial strain. Fortunately, the federal government recognizes this and allows adoptive parents to claim tax credits.
If you are adopting a child in the U.S., the tax credit you receive will be based on how much you spend on your adoption. Your tax credit will be bigger if you spent more. Expenses that you can claim as part of your adoption include court costs, travel expenses, adoption feeds, and other related expenses that were not reimbursed. Additionally, tax credits will be based in part on your income. If you make more than $234,580, however, you will not be eligible for the credit.
Adoption is a wonderful process that helps fulfill the lives of several people. Fortunately, the federal government agrees. The tax credit can be carried over for up to five years after the first year, allowing many families to experience the joy of adoption without the financial hardship that can sometimes come with it.
Source: Huffington Post, “Adopting a Child Can Bring You Countless Rewards — and Tax Benefits,” Mark Steber, July 24, 2013