Law Blog

Michigan Makes Changes to the Adoption Tax Credit

It goes without saying that parenting is a really tough job, regardless of whether one is handling it solo, in a heterosexual relationship, or part of a same sex couple. Not only is the care and protection of children a big enough task, there are plenty of financial questions that come into play as well. This is especially true for parents exploring adoption.

Some Americans are aware that the maximum tax credit for adoptions was raised to $13,190 in 2014, but most aren’t clear on the guidelines that come along with it. In order to qualify for the adoption tax credit, one must have adopted a child and paid the total costs of the adoption. These tax credits vary on an individual basis and are based upon the amount of money one spends on the adoption process. Unfortunately, the adoption tax credit is not available for stepparent adoptions or adult adoptions. On the other hand, those who adopt special needs children are typically eligible to receive the full tax credit.

One’s annual income also plays a role in determining the tax credits available for adoption. If one’s adjusted gross income is equal or less than $197,880, they are eligible for the full tax credit. Those who make more than that amount annually can receive a reduced adoption credit, maxing out at incomes of $237,880. Therefore, those who earn over that amount each year are not eligible for the adoption tax credit.

If you are unsure of whether your family is eligible to receive the tax credit for adoption in Michigan, it is important to explore all of your legal rights. Contacting the experienced and knowledgeable Detroit adoption attorneys at Nessel and Kessel Law will not only give a confusing situation clarity, it will also ensure that all of a client’s rights are protected in front of the law. Don’t wait to explore all of our options, contact our skilled legal team at 313-556-2300 today!

 

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