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The Federal Tax Credit for Special Needs AdoptionsThe federal government will give a tax credit to families who adopt children with special needs in the amount of $12,150 for adoptions finalized in 2009, while allowing families six years to use the entire credit. The way the tax law is written, a fairly substantial number of adoptions from foster care qualify for this credit, which has been underused in recent years tax returns. According to the NACAC (North American Council on Adoptable Children) many harder to place children, when adopted, often qualify the family for this tax credit. These children include older children, children of color, sibling groups, children with medical conditions, children with disabilities, as well as many children adopted from foreign countries. For additional assistance, NACAC has created a helpful reference on some of the details of eligibility for this credit and, of course, the IRS makes available instructions for form 8839. |
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