Those with the time and financial resources to adopt a child in 2014 will find that the Federal government looks favorable on the endeavor. A tax credit can be taken for up to $13,190.00 of the costs involved in the procedure.
In addition, for those adopting a special needs child, the full credit is available even if the cost is actually less than $13,190.00. However, care must be taken. Federal tax law requires that the state make an individual determination that the specific child being adopted in a child of special needs and can’t be returned to the birth parents. The adopted parents can’t rely on how state law defines a special-needs child. Determination must be made in the specific instance of the child being adopted.
Still, given the costly and time consuming nature of the adoption process, this tax credit is a welcome help to all parents who have adopted in 2014.