If you adopted in 2019, you may have spent a fair amount of money on adoption-related expenses. Fortunately, you can balance those out with a tax advantage this year: the Adoption Tax Credit.
The Adoption Tax Credit exists to offset the expenses that many adoptive parents pay in building their family. Whether you adopted through foster care, international adoption or private infant adoption, you can use the Adoption Tax Credit when filing this year.
If your adoption was finalized in 2019, you can receive a nonrefundable credit of $14,080. As long as you spent that much on eligible adoption expenses, you can receive the full credit to cover some tax obligations (for up to five years, if necessary).
Taxes can be confusing by themselves; throw in adoption, and they can get even more complicated. That’s why we encourage every adoptive parent to work with a tax professional during filing to ensure their paperwork is completed accurately. Check out a few tips for finding a tax professional here.
In the meantime, you can check out these resources to learn more about the 2019 tax credit:
- How to Claim the Adoption Tax Credit
- Adoption Tax Credit 2019 Guide
- Claiming the Federal Adoption Tax Credit for 2019
Please note: We are not tax professionals, so the information in this article is not intended to be nor should be used as financial advice.