In-Depth Information on Adoption Tax Credit

Creating a Family recently published an in-depth blog post on the Adoption Tax Credit detailing what will happen to the credit through 2012 and beyond. Get this helpful information by visiting their blog, The Future of the Adoption Tax Credit in 2011, 2012, 2013, & Beyond.


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  • Ann Wrixon

    Here is the summary:

    1. The Adoption Tax Credit for 2011 is $13,170/child. For a domestic adoption this can be claimed in the year your child is placed in your home (in other words you do not have to wait till finalization).

    2. The tax credit for 2011 is refundable, which means that even if you did not owe $13,170 in taxes the federal government will refund that amount to you.

    3. There are income limitations for who can claim the credit. If you adjusted gross income is above $182,520 the amount of the credit is reduced. You cannot claim the credit if your adjusted gross income is above $222,520.

    4. The extension of the Bush Tax cuts extended the credit until December 31, 2012, but with the following modifications:

    A. The amount for 2012 will be $12,170/child.

    B. The tax credit will not be refundable. This means to get the full refund, you must owe at least $12,170 in taxes.

  • Mani Sheriar

    Ann – Thank you SO MUCH for this helpful summary!!!

    It’s disappointing that the tax credit will be reduced and no longer refundable, but I’m delighted to learn that the that it will at least continue.

    I’m also super delighted to learn that we can claim the entire $13,170 in it’s refundable form since our birthmom is due in a few weeks … so our baby will be “placed” with us this year.  So relieved that we don’t have to wait until the we have finalized.  Great news!!

  • anon

    Unfortunately the information provided in #1 is inacurate. Any expenses that you paid must be claimed on your taxes the year AFTER they were paid.  i.e. you paid $10,000 in 2011 to adopt, but will not finalize until 2012, you can not claim the credit until 2012.  If you paid expenses in 2010 and have not yet finalized you may claim them on your 2011 taxes.
    They CAN NOT be claimed in the year the child was placed in your home, unless you had paid expenses the year before.

    According tyo the IRS:
    IF you pay qualifying expenses in… THEN take the credit in… Any year before the year the adoption is final The year after the year of the payment. 
    The year the adoption is final The year the adoption is final. Any year after the year the adoption is final The year of the payment.

  • karen

    Help make the adoption tax credit fully refundable for 2012 and 2013 by going to and sign the Economic Justice Petition: Make adoption fully refundable for the 2012 and 2013 tax year. Your signature is needed.

  • Please note that the Independent Adoption Center is closing for the holidays on the afternoon of December 22nd 2011 and will reopen on January 3rd 2012.
    I will return your message when I return in the new year.

    Wishing you a festive holiday season!

    Erin Grimm
    Creative Director of Marketing
    Independent Adoption Center

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