Tax Credit for International AdoptionA tax credit for international adoption won't cover your immediate adoption expenses; you'll still have to come up with the funds to pay for your adoption. But what it will do is ease your tax burden in later years, enabling you to pay off an adoption loan much quicker or simply help with the additional costs of raising your child.
So how does it work? Here are some details about this credit.
Disclaimer Up FrontWhile I have listed some of the basic rules that apply to this credit, please remember this page does not replace the advice of an attorney or tax advisor. Make sure to also consult your tax advisor.
How Much Is It?You are allowed to take a tax credit and exclude employer-provided adoption benefits from your income up to a total of $12,150 as of this writing, in 2009.
Type of Adoptions that QualifyThe expenses of domestic adoptions qualify even if your adoption hasn't yet been finalized. However, an international adoption must be finalized in the previous year before any adoption expenses will qualify for the tax credit.
Employer-Provided Adoption BenefitsThe same goes for any employer-provided adoption benefits. You cannot exclude any of these benefits from your income for tax purposes until your international adoption has been finalized - i.e. an adoption decree has been issued.
Employer-provided adoption benefits include anything your employer pays to you or to a third party for your adoption expenses.
What Adopted Children are Eligible?The child you adopt will qualify as an eligible child for the tax credit if this child is under the age of 18 or is disabled person and unable to physically or mentally take care of himself.
Expenses that QualifyThe expenses that qualify for the tax credit include adoption fees, any attorney fees, court costs, travel expenses (including meals and lodging), and re-adoption expenses.
Expenses that Do Not QualifyExpenses that do not qualify for the tax credit for international adoption include any expenses reimbursed by funds under any state, local or federal program, illegal expenses, surrogate parenting expenses, any employer-provided benefits, and anything else allowed as a deduction or credit under any other provision of the tax law.
Read All About ItLearn more about the tax credit for international adoption on the IRS website by clicking here.
Other Helpful SourcesAsk many couples why they don't adopt, and they'll say finances are what are holding them back. But it doesn't have to be that way. My husband and I had a limited income, yet we were able to adopt three children, including one child from Guatemala without going into debt. You can too. Here's how.
Are you thinking about pursuing an international adoption? Developing a plan for how you'll pay for that adoption is the first step you should take. Here are some ways to get started.
There are many ways to fund an international adoption. Learn different ways by clicking here.
Uncle Sam also wants to help you with your adoption costs through a tax credit. Learn more.
If you're looking for more details about the tax credit, you can read more by clicking here.
Grants are a great way to help with adoption costs. Find agencies that offer grants by clicking here.
Want to learn about more places for grants? Here are some more great places to apply.
It is possible to find an international adoption you can afford. Here are some ideas to help save money.
Still wondering how you're going to pay those adoption expenses? Find more ways to raise funds by clicking here.
A garage sale is a great way to raise adoption funds. Learn how to finance your adoption by clicking here.
Intimidated by high adoption costs? Don't be. Paying for your adoption involves taking one step at a time. Find some more tips by clicking here.
So how much will your international adoption cost? The answer will depend on the country you choose and whether you choose to go through an agency or pursue an independent international adoption. Learn more here.
Fundraisers are a great way to pay for your adoption. Learn about some fun ones by clicking here.
The best kinds of fundraisers are fun, fairly simple to organize and - naturally - bring in the most funds for your international adoption. Learn more.
Making and selling gift baskets are one creative way to raise funds for your international adoption. You can read some tips on making an appealing basket by clicking here.
Thinking about taking out a loan to pay for your adoption? Read this article first by clicking here.
If you want to pursue a loan using your home as equity, there are important things to know upfront. Learn more here.
One of the easiest and most effective ways to pay for your international adoption is to learn to cut back on costs. Here are some easy ways.
Do you love doughnuts? You're not alone. Help pay for that adoption with a doughnut fundraiser. Learn more here.
When making plans for raising funds for your adoption, don't forget to include friends and family. Learn how to write a letter to solicit funds and help by clicking here.
More and more companies are now offering adoption benefits, so it's definitely worth your while to check and see if your company offers such benefits. Learn more.
Great Fundraisers!Use a raffle to raise funds for your adoption. Learn more.
Sell t-shirts and pay for your adoption with a t-shirt fundraiser. Read more.
Read one person's story about raising funds for her adoption with a Garage sale fundraiser.
A benefit gala is a fun way to pay for your adoption. Read more.
How about a chicken dinner for raising funds. You can read all about it by clicking here.
One adoptive parent used a roller skating fundraiser to help with adoption costs. You can read her story by clicking here.
While you're doing one fundraiser, why not combine it with another one? Learn how.
Looking for a low-cost, simple way to raise funds? How about the pasta fundraiser? Read more.
A taste test party is another great way to raise funds. Learn more about it by clicking here.
Using the cash bash to raise funds for your adoption. Learn more.
A jigsaw puzzle fundraiser is a fun way to raise money for your adoption. You can read about it by clicking here.
Pay Adoption Costs
Adopt Debt free will provide you with the tools and techniques to completely pay for your adoption and bring your child home without having to go into debt!
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