Tax law changes to benefit adoptive parents were included in
a larger tax relief package signed by President Bush last year.
The Hope for Children Act provisions expanded
an existing adoption tax credit to a new maximum of $10,000.
It also increased the income limitations so that those with
incomes under $150,000 (previously $75,000) would qualify for
the full credit and liberalized the tax credit for families
adopting children with special needs so the credit can be applied
to costs associated with raising a child with special needs
(as opposed to actual adoption costs). Further, the law required
the amount of the credit to be adjusted annually for inflation.
*Contact your tax preparer for specific information.
