Adoption Credit
Beginning in 2007, the credit allowed for an adoption of a child with special
needs is $11,390 and the maximum credit allowed for other adoptions is the
amount of qualified adoption expenses up to $11,390. The credit begins to phase
out if you have modified adjusted gross income of $170,820 or more and is
completely phased out if you have modified adjusted gross income of $210,820 or
more.
Adoption Assistance Program
Beginning in 2007, you may be able to exclude up to $11,390 from your gross
income for qualified adoption expenses paid or incurred by your employer under a
qualified adoption assistance program in connection with your adoption of an
eligible child. This income exclusion starts to phase out if your modified
adjusted gross income is $170,820 or more and is completely phased out if your
modified adjusted gross income is $210,820 or more.
What is an ATIN?
An ATIN is an Adoption Taxpayer Identification
Number issued by the Internal Revenue Service as a temporary taxpayer
identification number for the child in a domestic adoption where the adopting
taxpayers do not have and/or are unable to obtain the child's Social Security
Number (SSN). The ATIN is to be used by the adopting taxpayers on their Federal
Income Tax return to identify the child while final domestic adoption is
pending.
Can I get an ATIN if I am adopting a child from
another country?
No, you should apply through the Social Security
Administration (SSA) for a valid SSN. When you are adopting a foreign child,
upon the child's entry into the United States you should receive enough
documentation from the Immigration and Naturalization Service (INS) to satisfy
the Social Security Administration's requirements for a SSN.
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