Adoption Tax Credit for 2011

Anyone who has adopted should know about the Adoption Tax Credit. It's a huge blessing for adopting families to recoup a portion of expenses when adopting a child. But if you're most of us, that's about where your knowledge ends.

Internet to the rescue.

With tax season upon us, here are some links to help you maximize your credit, and minimize the effort.

• Ask the Adoption Law Expert - by Adoptive Families Magazine
• The Future of the Adoption Tax Credit in 2011, 2012, 2013 & Beyond - by Creating A Family
• Adoption Tax Credit: For Families - by Jackson Hewitt and the Dave Thomas Foundation
• Adoption Tax Credit - free webinar! by Adoption Learning Partners Adoption
• Claiming the Federal Adoption Tax Credit for 2011 - North American Council on Adoptable Children     
• Adoptive Parents: Don't Delay Your Adoption Credit Refund - by the IRS
• Six Things to Know About the Expanded Adoption Tax Credit - by the IRS
• Qualified Adoption Expenses - by the IRS

The numbers below reflect the total Adoption Tax Credit amounts. Note that only in 2010 and 2011 are these amounts refundable, which means that the refund is received in a lump sum. This was a huge surprise to many of us last tax season when we learned that our refund was going to be significantly larger than anticipated. But the IRS insisted on auditing many adoptive families, so it is wise to make sure you have all your receipts and documentation of expenses organized and ready to go before you file for 2011. According to the IRS website, "Taxpayers may also be asked, after filing their returns, to substantiate any qualified adoption expenses they paid."

2013: $5,000 or $6,000 for a special needs child (projected)
2012: at least $12,170 (will be indexed for inflation), non-refundable
2011: $13,360 (will be indexed for inflation), refundable
2010: $13,170, refundable 
2009: $12,150, non-refundable
2008: $11,650, non-refundable
2007: $11,390, non-refundable
2006: $10,960, non-refundable

Adoption Tax Credit Amount Source: William Perez - about.com 

If you have any sites or tips to share for this tax season, please do. I know that many of us learned way more about taxes than we wanted to last year when the vast majority of refunds were being withheld due to audits.