Tax credit question

SuzanneS · #1 07-13-2006, 10:40 AM

Hi! I'm from the China boards... I've got a friend here at work who is adopting his sister's kids (she died, father is ?).

He was asking me if his adoption attorney expenses are tax deductable. I know that international adoptions qualify for the tax credit. Is this also applicable for domestic adoptions like this? If so, it will help him out a bunch!

Thanks in advance for any answers!

riverview · #2 07-13-2006, 11:34 AM

10,690 tax credit.!!

HBV · #3 07-13-2006, 11:44 AM

Yes, it's available provided that you fall into the income guidelines. It is effective in the tax year when finalization takes place.

SuzanneS · #4 07-13-2006, 11:46 AM

That will work! His wife doesn't work and since he's at the same company I am I know he can't be making that much, LOL!!

sak9645 · #5 07-13-2006, 12:10 PM

The tax credit applies to both domestic and international adoption, though there are some different rules for each.

HOWEVER, there are some domestic adoptions to which the tax credit does not apply -- for example, stepparent adoptions and surrogacy arrangements. Based on the instructions to IRS Form 8839, your friend might be OK.

Have your friend read the instructions to Form 8839, run his/her tax software, and/or check with a tax preparer knowledgeable about adoption.

Sharon

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