2007 and 2008 adoption credit

Adoption credit rises

This credit will benefit most taxpayers who add children to their families through adoption.

The maximum adoption credit for families rises to $11,390 in 2007. In addition, the credit for adopting children with special needs rises to $11,390.

Also, a taxpayer can exclude from gross income as much as $11,390 for amounts paid or expenses incurred under his employer's adoption-assistance program.

The credit starts to be phased out when adjusted gross income hits $170,820 and is phased out completely when it exceeds $210,820.

In 2008, the adoption credit will to rise $11,650 for standard adoptions plus $11,650 for children with special needs. Also, the maximum exclusion from gross income for amounts paid or expenses incurred under his employer's adoption-assistance program will be increased to $11,650.

The credit will start to be phased out when adjusted gross income hits $174,730 and will be phased out completely when it exceeds $214,730.

Published Dec. 6, 2007

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