Adoption Tax Credit

2003 IRS Information

Below you will find a quick outline of the relevant information on the income tax laws affecting adoption for 2003, including a tax credit AND an exclusion.  For the full IRS Publication 968 (2003) Tax Benefits for Adoption, link here: http://www.irs.gov/publications/p968/index.html

Introduction
This publication explains two tax benefits available to offset the expenses of adopting a child.  The benefits are the adoption credit and the exclusion from income of benefits under your employer's adoption assistance program.
The first part of the publication is for persons who have recently adopted a child, are in the process of adopting a child, or are considering adopting a child.  The second part is for employers who provide adoption assistance payments to workers.

Important Change for 2003
Dollar limit increased. Beginning in 2003, the maximum credit increases to $10,160. Also, the exclusion from income of benefits under your employer's adoption assistance program increases to $10,160. You will be allowed these amounts for the adoption of a child with special needs regardless of whether you have qualifying expenses. See: Child with special needs, for more information.

For more a detailed explanation of the Adoption Tax Credit 2003 visit Adoption.com at http://tax-credit.adoption.com/