What Adoption Expenses Count? Qualified Adoption Expenses - 2017 Adoption Tax Credit

What Adoption Expenses Count? Qualified Adoption Expenses - 2017 Adoption Tax Credit! Rules for claiming 2017 Adoption Tax Credit - Full overview of the how adoption tax credit works! Tax form 8839 --------------------------------------------------------------------------------------------------------- You can download spread sheetshown in the video here: http://moneyandlifetv.com/downloads Where to find me outside of Youtube Learn More @ my website/blog: www.moneyandlifetv.com Find me on Twitter @   / mkchip123   Facebook @ www.facebook.com/MKChipfanpage/ Articles and forms: http://moneyandlifetv.com/blog/adopti... http://www.americanadoptions.com/adop... IRS Form 8839: https://www.irs.gov/pub/irs-pdf/f8839... ----------------------------------------------------------------------------------------------- Adopting a child can be one of the most wonderful things your family can experience, but it can also bring about a lot of emotional stress and financial stress. Although I cannot help you with the emotional stress, I can help alleviate some of the financial stress. Adoption credit or benefit exclusion If adopting an eligible child, you may be able to claim both a tax credit and benefit exclusion for the same adoption. This assumes that you are not counting the same expenses twice for the credit and exclusion. Whom is considered an eligible child? An eligible child is someone whom is either 1. Under the age of 18 when qualified adoption expenses are incurred. 2. Can be older than 18, but must be physically and mentally incapable of taking care of themselves. What happens if the child turns 18 while I’m in the process of adopting them? Only the expenses incurred before the child turns 18 will be eligible for the tax credit and exclusion so keep that in mind. What is a benefit exclusion? A benefit exclusion is money received from your employer to help pay for your adoption, but is not taxable income to you. The benefit exclusion can be worth $13,570 on top of the tax credit you may be eligible for. Facts about the adoption tax credit 1. The 2017 adoption tax credit can be worth $13,570 2. The Credit is non-refundable. This means it could bring your tax liability to zero, but it would not generate a tax refund for you. 3. The credit can be carried forward for 5 years until it is used up or lost. 4. Married couples must file a joint return in order to take advantage of the credit. 5. For a special needs child, the credit or exclusion is allowed even if the taxpayer does have qualified adoption expenses. 6. To claim the credit, you will need to fill out and file IRS Form 8839. 7. The income phase out limitations start to kick in when a taxpayer’s adjusted gross income is over $200,000. If your adjusted gross income exceeds $242,000, will you not be able to claim the credit or exclusion. To learn more regarding the tax laws around adoption: Google Search “2017 Form 8839 Instructions” Music by Ximer Tracks! Thanks Ximer! Phantom Sage - Our Lives Past (feat. Emily Stiles) [XimerTracks]    • Phantom Sage - Our Lives Past (feat. Emily...