Are you ready for next year’s tax season? Us either. It’s amazing how quickly this year has come and gone. Christmas decor has overtaken Thanksgiving in stores, proclaiming a more rushed holiday season this year. That, or there are those who prefer to have a longer period of time to celebrate Christmas than only a few weeks. Despite that Thanksgiving isn’t until November 28th, Christmas trees and house lights can already be seen around neighborhoods.

With how fast time is flying by, the Internal Revenue Service (IRS) recommends that all taxpayers start their preparations now for next year’s tax day: April 15th, 2020. So, why not take advantage and stay ahead of the curve by learning about statistics for the Adoption Tax Credit 2019. Are you eligible? How do you claim it? Let’s find out!

Eligibility for the Adoption Tax Credit 2019

If you are familiar with adoption finances at all, you have no doubt run into the term, “Federal Adoption Tax Credit.” Put simply, this is a non-refundable tax credit that helps families afford the costs of qualifying adoption expenses. So, if you are an adoptive family who paid any of these adoption expenses in 2019 and owe taxes, you may be eligible to reap the benefits of the Adoption Tax Credit for 2019.

According to the IRS, qualified adoption expenses can include:

  • Reasonable and necessary adoption fees
  • Court costs and attorney fees
  • Traveling expenses related to adoption
  • Other expenses directly related to, and for the sole purpose of, the legal adoption of your child

To determine whether or not you are eligible for the Adoption Tax Credit, or if you have questions or concerns pertaining to your specific circumstances, please consult your tax professional for more information.

Adoption Tax Credit 2019 Amount

The credit itself is available to most adoptive parents, with a few exceptions. For instance, if your family exceeds a certain income threshold, you won’t be able to claim the adoption credit. In 2018, families within the range of $207,140 to $247,140 were able to claim partial credit. These numbers are based on modified adjusted gross income (MAGI), and take into account the current cost of living. Each year, the Adoption Tax Credit limit is subject to adjustment in order to keep up with the economy.

For 2019, the adjusted MAGI allows families who make between $211,160 to $251,160 to claim partial credit. This means that adoptive families who gross below $211K can claim the full credit. Those above $251K cannot claim it at all.

Claiming the Adoption Tax Credit

To claim the credit, taxpayers should complete a 2019 version of IRS Form 8839, available at irs.gov in early 2020, and submit it with Form 1040 when filing their 2019 taxes. Most tax software will create this form for you. Before filing, taxpayers should review 2019 Form 8839 instructions very carefully to be sure that they applied for the credit correctly and to see if anything has changed. The instructions are needed to calculate how much of the credit will be used.

When claiming the adoption tax credit, you’ll want to be ready with documents such as:

  • The final adoption decree
  • A placement agreement from an authorized agency
  • Court documents
  • A state’s determination for special-needs children, if applicable

Adoption Tax Credit 2019

We understand this is a lot of information all at once, and it may take some time to process. But, remember, if you have questions or concerns at all, don’t hesitate to reach out to your tax professional. Adoption Choices of Colorado, unfortunately, does not offer tax advice and this article should not be considered tax advice. So, your tax professional will be your best resource when it comes to breaking down the process and helping explain how the Adoption Tax credit can benefit you and your family.

Adoption Choices of Colorado

For more information on adoption please contact Adoption Choices of Colorado. We can be reached via our website or phone 303-670-4401.

Support Adoption Choices

CrowdriseAdoption Choices, Inc. is partnering with Crowdrise, a fundraising website for nonprofits, to help our adoptive parents and birth parents with much needed financial assistance. We understand that expenses keep clients from fulfilling their dreams. Both with birth parents making a plan for adoption, and with adoptive parents growing their family. It is our mission to provide financial assistance through grants and scholarships, awarded annually in November, in honor of National Adoption Month. Funds assist adoptive parents with matching and placements, adoption finalization and helping birth mothers improve their lives through higher education — and much more.

However, we can’t do it alone. Please read up on our programs and donate money where you are able. Your donation will make a huge impact.

About the Author

Rachel RobertsonRachel Robertson is a published journalist, book editor, certified Publishing Specialist, and aspiring novelist. She graduated from Central Washington University (CWU) in March 2011, having found her writing voice within the Creative Nonfiction genre and grew to work as a freelance book editor for small presses all across the United States.

In June 2018, she embarked on an internship with Virginia Frank and came on board with Adoption Choices Inc., Not for Profit 501(c)(3), in December 2018. Between her mutual passion with adoption and surrogacy, and her own personal history with adoption, Rachel is excited to research and share topics each week that will spread awareness and better serve the faithful patrons of Adoption Choices Inc.

When Rachel isn’t haunting her local Starbucks or Barnes and Noble, she’s avidly pouring over her Writer’s Digest subscription or cozying up with a cup of tea and book. She currently resides in the beautiful Pacific Northwest with her beloved wife and Border Collie.

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