The official Adoption Tax Credit numbers for 2014 have been issued by the IRS. The maximum dollar amount allowed for tax year 2014 is set at $13,190 per child (up from $12,970 in 2013). The adoption tax credit begins to phase out for those families with modified adjusted gross incomes for the applicable tax year is in excess of $197,880 and is phased out all together for those with modified adjusted gross income in excess of $237,880 The adoption of a “special needs” child as defined in the tax code qualifies for the full adoption tax credit amount for each child without having to show the payment of any costs or expenses. Again this year, the adoption tax credit is most commonly taken by adoptive families in the year the adoption is finalized. Contact our office or your tax professional if you have questions.