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Wednesday, April 4, 2012

Foster Care Adoption: Do You Qualify for the Adoption Tax Credit?

To say we were shocked to find out we did actually qualify for the 2011 is an understatement!!  I'm not a CPA so if you adopted last year, you need to talk to a professional to see if you qualify but for those looking into adoption through foster care like we did, here's a few things we found out:

-Most kids in our foster care system are considered special needs.  Special needs can be because of their age, race, sibling group as well as medical needs.  As you know, our son is Native and was automatically considered special needs even though he has absolutely zero medical or psychological issues.  Because he was special needs, we qualified for the credit.

-The state paid all attorney fees, home study costs, and everything else that had to do with our adoption.  We had no out of pocket costs.  But the credit still applies because our son is considered special needs.

-Their is an income cap for adjusted gross income of around $185,000 and then the credit is phased out by $222,520.

-Say you didn't have $13,170 in tax in 2011 or say you don't have any tax liability last year (I say this because when my husband was in the military and deployed half the year, and we owned a house, we had 2 years where we owed nothing in tax), you still can get the the full $13,170 refunded!

Now, do I think you all should rush down to your local foster care office and adopt to get the credit, HECK NO!!!  But do I think it's amazing the government sees the need for adoptive families and are willing to give them a break on their taxes or reimburse some of the private adoption costs in order to allow more families the opportunity to adopt, YES I DO!!

Here is a link to the IRS' Six Things To Know About The Expanded Adoption Credit!


  1. Everything okay? We haven't heard from you in a while.

    Signed, fellow foster/adopt momma

  2. Hi there,

    Are you ok?


  3. Just checking on you again! we havent heard a blog in 5 months...this is NOT like you....can you at least let us know if you are alive? Prayers for you and yours that you will be back blogging soon! miss ya!