10.30.20

If you’re considering adopting a special needs child, you should know there may be financial help available in the form of an adoption tax credit.

If you’re considering adopting a special needs child, you should know there may be financial help available in the form of an adoption tax credit.

For 2021, the credit is $14,440 (up from $14,300 for 2020). For taxable years beginning in 2021, the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $14,440 (up from $14,300 for 2020).

The available adoption credit begins to phase out for taxpayers with modified adjusted gross income (MAGI) in 2021 of $216,660 and is unavailable once MAGI reaches $256,660. For 2020, the phaseout range was $214,520 to $254,520.
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