Adoption Tax Credit Amounts for 2013 Set by the IRS

by Mark Demaray on January 11, 2013

The IRS has just released the official numbers for the 2013 Adoption Tax Credit.  The maximum dollar amount allowed under the new law for tax year 2013 is now set at $12,970 per child (the maximum was $12,650 in 2012).  This adoption tax credit begins to phase out for those families whose modified adjusted gross income for the applicable tax year is in excess of $194,580 and is completely phased out for families with modified adjusted gross income of $234,580 or more.  No adoption tax credit benefit is allowed for families with a modified adjusted gross income level above that $234,580 income level for 2013.   The adoption of a “special needs” child still qualifies for the full adoption tax credit amount for each child without having to show the payment of any costs or expenses.   This adoption tax credit is most often taken by adoptive families in the year that an adoption is finalized.  This newly extended tax law and benefit will not impact families who have finalized their adoptions on or before December 31, 2012 as they will still be able to claim the adoption tax credit under the previous versions of this law if they were qualified to do so.   Contact our office or your tax professional if you have questions.  

 

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