Adoption Tax Credit.... Updated w/ the latest version of the IRS Pub. 968 which describes how to take the adoption tax credit on your income taxes.
Hope for Children Act
Helps Families Afford Adoption
On May 26, 2001 the Hope for children Act passed the House (H.R. 622) and the Senate. The Act was introduced by Senator Larry Craig (R-ID) and a similar version was introduced to the House by Representative Tom Bliley (R-VA). The Hope for Children Act amends the previous adoption tax credit to:
* Remove the law's sunset provision, thus making the adoption tax credit permanent
* Increase the maximum credit allowable from $5,000 to $10,000
* Provide for annual adjustments for inflation to the maximum allowable
* Increased income limitations so that families with incomes up to $150,000 (rather than the previous $75,000 limit) can qualify for the full credit with graduated step-down to an income maximum of $190,000.
The HOPE act was signed into law as part of the H.R. 1836 the economic growth and tax relief act (the bill that provided refunds for everyone.) It became Public Law No: 107-16 on June 7, 2001.
*****Remember, to take full advantage of this tax credit, write down ALL your expenses!******
