Question

If a family receives the adoption tax credit does it get added to their taxable income for the year that they received the credit?

ACT's Response

No. Josh Kroll of the North American Council on Adoptable Children (NACAC) informed me that the IRS told him the tax credit was non-reportable income and would not be taxed. He added, however, that some states might see the money as a reason to cut back on food stamps and other related programs. He said this would not be a problem if the money were spent for the child's subsistence within a reasonable time.

Originally posted

December 27, 2011 - 5:41pm

Last updated

December 29, 2011 - 10:57am