Adoption Tax Credit
The Internal Revenue Service (IRS) released new figures related to the Adoption Tax Credit and Adoption Assistance Program on October 16.
For 2009, both the amount that adoptive parents are permitted to claim under the Adoption Tax Credit and the amount to be excluded from an employeeâ€™s gross income for qualified adoption expenses incurred under an employer-provided adoption assistance program are set at $12,150.
Also for 2009, the income eligibility phase-out range for both programs has been adjusted to $182,180 â€“ $222,180, with individuals earning more than $222,180 ineligible for either program. These adjustments are the result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) provisions that said amounts and income limitations be indexed for inflation each year beginning in 2003.
Please contact your tax accountant about this for further clarity on how it will affect you, personally.