Happy 2017 Adoption Tax Credit News!

In October, the IRS adjusted over 50 tax provisions for taxes filed in 2018 for the 2017 tax year. The maximum adoption tax credit will increase to $13,570, from $13,460 in 2016. Parents who adopt a child with special needs can claim the full amount.

Taxpayers who make more than $243,540 or more annually are not eligible to receive the credit, and phaseouts apply for taxpayers with a modified adjusted gross income over $203,540 per annum.

The Adoption Tax Credit Working Group is still working to make the adoption tax credit refundable. The current non-refundable credit cannot be claimed by families that have no tax liability, which rules out most lower- to moderate-income families.

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