For those who are diving into their taxes today or have filed an extension (like me – still waiting on my son’s ATIN number) here are a few helpful links on taxes and adoption.
As always, I recommend asking a professional for detailed and personal advice on your taxes.
IRS 2009 Federal Adoption Tax Credit info
State Adoption Tax Credit info
Adoptive Families Magazine Adoption Tax Credit article: a Q&A by Mark McDermott JD (.pdf)
And last but not least, click here to do your part in helping make the federal adoption tax credit permanent.
Along with the Federal Adoption Tax Credit, there are a number of States that also offer State level tax assistance for adoption.
For example, North Carolina has a State Adoption tax credit that is equal to 50% of the allowable tax credit claimed on your federal return (for 2009 that is $6,075).
$12,150 (2009 Federal Adoption Tax Credit) + $6,075 (2009 NC State Adoption Tax Credit) = $18,225 total Tax Credit.
One website lists the States below as having some assistance (be sure to check with your tax advisor since tax laws change frequently). Also, please let me know if your State has a tax credit or other assistance and is not listed below. I would love to compile an up-to-date list.
10. New Mexico
11. North Dakota
14. West Virginia