Federal Adoption Tax Credit

For 2009, this credit has been raised to $13,170. However, there is a phase out of the benefit for families with modified AGI’s of $170,000 or more, and the credit is completely phased our for families whose modified AGI is greater than $210,820.

For more information about this credit, visit this site.

State Level Tax Benefits

Currently, the following 15 states offer state-level benefits on top of the Federal Adoption Tax Credit: Arizona, California, Idaho, Kansas, Maryland, Massachusetts, Michigan, Missouri, New Mexico, North Dakota, Oklahoma, Utah, West Virginia, and Wisconsin. Each state offers a different benefit, some offering tax credits and others a tax deduction. To find out specific information on your state, you need to check your state’s tax laws.

“But when the fullness of the time came, God sent forth His Son, born of a woman, born under the law, so that He might redeem those who were under the law, so that we might receive the adoption as sons.” Galatians 4:4-5