Adoption Tax Benefits

tax tip

If you adopted or tried to adopt a person in 2014, not only are you a great person, but you also may be entitled to some tax benefits from Uncle Sam.  Here are a few things you should know about adoption tax benefits:

  1. The credit is non-refundable, meaning that it can reduce your tax liability to $0 but it will not put money directly in your wallet or purse;
  2. The maximum benefit is $13,190 per child;
  3.  If the credit is more than your tax for the year, any overage amount can be used for future tax years;
  4.   In order to claim the benefits, the adopted person must be under age eighteen (18) or physically or mentally handicapped;
  5.  There are special rules if you adopted a special needs child; and
  6.  The richer you are, the lesser benefits you may receive.

If you are needing assistance filing your income tax returns this year or you need tax assistance in general, feel free to contact our law office at 816-524-4949 or www.Hoorfarlaw.com.

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