Adoption Tax Credit for Same-Sex Couples
In yesterday’s article on California Same-Sex Marriage, we discussed
how same-sex couples generally find themselves excluded from many tax
benefits in light of the U.S. Supreme Court’s pending review of
California’s Proposition 8 and DOMA. Same-sex couples, however,
do qualify for a tax break if they
adopt a partner’s child.
The Federal Adoption Tax Credit for a “second parent adoption”
may grant qualifying tax payers up to $12,650 per child for certain expenses
including legal fees, court costs, and home study fees. It would appear
that only same-sex couples qualify for this tax credit and this particular
adoption tax credit would not be applicable to a heterosexual couple in
the context of a stepparent adoption in California such as when one spouse
adopts the child of his or her spouse.
Established in 1997, the adoption tax credit has been helping families
offset the high cost of adoption and can be claimed for certain eligible
adoption-related expenses. Apparently, the adoption tax credit was made
permanent earlier this year. The adoption tax credit applies to all types
of adoptions, with the exception of a stepparent adoption, including international,
domestic private, and public foster care.
If you have had an adoption-related expense in 2013, the credit may go
as high as $13,360 per child, but you should always speak to a qualified
accountant who is familiar with the Federal Adoption Tax Credit to see
if you qualify for or are entitled to any benefits, credits or exclusions
that could substantially reduce your tax liability. You should be sure
to read IRS instructions for a qualifying adoption tax credit and consult
with a tax professional who can help you determine how to properly calculate
the credit or any exclusions for your adoption.
You can read more today about the adoption tax credit for same-sex couples at
CNN Money in an article published by Blake Elis on February 25, 2013. If you need
assistance with adoption, please contact an
adoption lawyer from
Castellanos & Associates, APLC at (323) 655-2105. We look forward to helping you build your family!