[mamae]

Hi,

I am originally from Brazil and from time to time I really feel my heart going out to kids in Brazil. Maybe because I am originally from there, I know what they go through, and I must say, seem easer to teach English to a child who speaks Portuguese, than Portuguese to a child who speaks English.

Anyway... our bigger problems is the cost of international adoption....

I think with trip, our adoption would cost around $25.000 to adopt 3 kids (sibling).

I heard that there is a 10.000 tax incentive. Is it per child or per adoption? Anyone knows how does it work>?

thank you

Sandra

[ocracoke]

Sandra,

You are talking about the adoption tax credit. I believe the 2007 adoption tax credit is $11,900 per child. However, keep in mind that the tax credit is not a tax refund. Your amount of usable tax credit per year will be based on your tax liability. You have 5 years to use the tax credit. My adoption cost me about $20,000. Last year I was able to take about $3,200 of the tax creidt and this year I was able to take about $2,200 of the tax credit. It will take me at least 2 more year to use my whole tax credit.

Samantha

[ptglmn]

I was also told that any expenses incurred during the process are deductable. Things such as home study fee, mileage to meet people/agencies, postage and the like.

[sak9645]

Expenses incurred are not "deductible". However, the adoption tax credit is based on the amount of qualifying adoption expenses you incur. Since the fees incurred during most international adoptions exceed $10,000, you will be able to take the full tax credit if you qualify on other grounds, such as income and the year you brought your child home. If your adoption did not involve fees of at least $10,000, you could claim the credit only up to the amount of fees incurred, except in the case of domestic special needs adoptions. Congress allowed people adopting children with special needs domestically to take the full credit (as long as the qualify on other grounds) even if they did not incur many qualifying adoption expenses


Sharon

[rmprhp]

You can check out more details about the adoption tax credit by visiting the IRS website:

Tax Topics - Topic 607 Adoption Credit

Adoption.com also has a nice article on the tax credit at:

The Adoption Tax Credit

Gina