Let’s Talk: Federal Adoption Tax Credit

We had our final meeting today with our permanency specialist from our agency. We read through our adoption home study/profiles and signed off! They will be submitted to the county next Wednesday. So super exciting! It’s only about two weeks until the adoption so we are running close.

While she was here, our permanency specialist talked over some of the post-adoption services and information. In it was the information regarding the Federal Adoption Tax Credit. While I have read some about this, I didn’t go into too much detail because I thought it was more for international adoption. I don’t know why I didn’t consider foster care adoption on the same caliber. Anyways, last year families that adopted a child received a tax credit of approximately $13,360 per child. So for 2014, we are eligible to file our taxes with the proof of adopting 3 special needs children (in Pennsylvania there are 5 criteria, and children must meet one of them to consider them special needs. One of the criteria considers children special needs if they are in a sibling group of 2 or more. One of the other criteria considers children special needs if they are five years old or older. So we have our bases covered on this one). We will use our adoption subsidy agreement with the county to prove that we adopted a sibling group of 2 or more and we will also file both their adoption decree and new birth certificates. Our specialist did say that everyone that files for the Adoption Tax Credit is audited so we will be prepared for that, which takes some time.

But holy moly I didn’t even expect this! It makes private school for four kids seem much more manageable now! Talk about creating a wedding fund for the three girls!


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