What is the adoption tax credit?

The adoption tax credit is a federal tax credit available to families who adopt a child. In Oklahoma, the adoption tax credit is currently worth $13,810 per child. This credit is available to families who adopted a child on or after January 1, 2020. The adoption tax credit can be used to offset the cost of adoption, including reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including meals and lodging) while away from home, and other expenses related to the legal adoption of a child. This credit can also be applied to the adoption of a foster child or a special needs adoption. Families can use the adoption tax credit to reduce their federal income taxes. The credit can be taken in the year that the adoption process is finalized, and it can be carried forward for up to 5 years if the full amount cannot be used in the original tax year. In order to qualify for the adoption tax credit, families must meet certain eligibility requirements, such as being a U.S. citizen, having an adjusted gross income that does not exceed a certain limit, and have an adoption-related expenses of at least $13,810. It is important to talk to a tax advisor if you have any questions about the adoption tax credit.

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