Please note that the following is general information for the provisions of the adoption tax credit.  It should not be used as a definitive source of information.  HAPS recommends that you consult a legal or tax professional for details and eligibility, particularly for international adoptions. 

The Federal Adoption Tax Credit was scheduled to sunset after 2010, but has been extended into 2012. This stipulates that adoptive families may be able to take a tax credit in 2011 of up to $13,170 for qualifying expenses paid to adopt an eligible child. The credit may be allowed for the adoption of a child with special needs, even if you do not have any qualifying expenses.

Eligibility: Check with your legal or tax professional regarding your eligibility based on your income, to take the credit or have the credit reduced.  

The credit can be used for "qualifying adoption expenses" which according to IRS includes "reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging) while away from home, and re-adoption expenses to adopt a foreign child."

Both domestic and international adoptions qualify for the tax credit.  For domestic adoption, the credit can be taken even if the adoption is not finalized.  For international adoptions, the child must be a US citizen in order for you to take the tax credit. 

For updated information on the tax credit, please see the IRS web site and search appropriate information:

http://www.irs.gov/