IRS Issues Guidance on Expanded Adoption Credit Available for Tax-Year...

IRS Expanded Adoption Credit Available for Tax-Year 2010

The Affordable Care Act raises the maximum adoption credit to $13 170 per child

IRS Tax Tips

Editor’s note: This content is provided by the Internal Revenue Service. Consult your financial or tax adviser regarding your individual situation. The Internal Revenue Service has issued guidance on the expanded adoption credit included in the Affordable Care Act. The IRS also released that eligible taxpayers will use to claim the newly expanded adoption credit on 2010 tax returns filed next year. The Affordable Care Act raises the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply. In addition to filling out , Qualified Adoption Expenses, eligible taxpayers must include with their 2010 tax returns one or more adoption-related documents, detailed in the guidance issued today. The documentation requirements, designed to ensure that taxpayers properly claim the credit, mean that taxpayers claiming the credit will have to file paper tax returns. Normally, it takes six to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. The IRS encourages taxpayers to use direct deposit to speed their refund. Taxpayers claiming the credit will still be able to use to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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