The Adoption Journey Project // Adoption State Tax Credit Details

7/31/2019 The Adoption Journey Project // Adoption State Tax Credit Details

1/19

S T AT E TA X C R E D I T I N F O R M A T I O N

for more information on adoption, visit: www.adoptionjourney.org


2/19


E L I G I B L E S T A T E S L I S T E D

S T AT E T A X C R E D I T I N F O R M A T I O N

In aition to th Fra Aoption Tax Crit, som stats offr a stat tax crit or uction as w. W compistat tax crit information for a iib stats, an put tothr a sin rsourc for ou to us on our journ. Pasask our tax aisor about how ths crits ma app to our famis taxs.

State Tax Credit Eligible States

Alabama

Arkansas

California

Georgia

Iowa

Massachusetts

Maryland

Michigan

Minnesota

Mississippi

Missouri

North Carolina

Oregon

Rhode Island

South Carolina

Wisconsin


3/19




No Minimum

Not Offr

Offr

A uction from ross incom is a ow for th rasonab mica an a xpnss paior incurr b th taxpar in connction with th aoption of a minor. For such purposs,mica xpnss incu an mica an hospita xpnss of th aopt an th aoptsbiooica mothr incint to th aopts birth an subsunt mica car an that, in

th cas of th aopt, ar pai or incurr bfor th ptition is rant. In cass of aop-tion ptitions which ar not rant, no uction for mica an a xpnss is aow.

Aa. Co 40-18-15(a)(24)

Alabama

A M O U N T O F B E N E F I T

C R E D I T

D E D U C T I O N

C O M M E N T S


4/19




20% of Fra Crit

Offr

Not Offr

For tax ars startin on or aftr Januar 1, 2011, an incom tax crit is proi for aop-tion xpnss, such as aoption fs, court costs, a fs, tc., as proi b IRC 23 , inffct on Januar, 1, 2003 , an IRC 36C as in ffct on Januar 1, 2011. Th amount ofth crit is 20% of th fra crit

Arkansas


C R E D I T

D E D U C T I O N

C O M M E N T S


5/19




$2,500 Max

Offr

Not Offr

A crit aainst th nt tax in an amount ua to 50% of th costs for aoptin a minorchi who is a U.S. citizn or a rsint of th U.S. an who is in th custo of a Cai-fornia pubic anc is aow up to a maximum of $2,500 pr chi.

COSTS qUAlIFyINg FOR CRedIT: Costs iib for th crit incu:

(1) fs for ruir srics of th dpartmnt of Socia Srics or a icns aop-tion anc;

(2) tra an rat xpnss for th aopti fami that is irct rat to thaoption; an

(3) mica fs an xpnss not rimburs b insuranc an ar irct rat toth aoption procss.

TIMe FOR ClAIMINg CRedIT: Th crit wi b aow for th taxab ar in whichth orr or cr of aoption is ntr. Howr, th aowab crit caim ma in-cu aoption costs incurr in an prior tax ar.

CARRyOveR OF CRedIT: If th crit xcs th nt tax th xcss ma b carri orunti xhaust

NOTe. Unik th corrsponin fra incom tax crit in IRC 23 , Caifornias aop-tion-cost crit is not subjct to phas out bas on ajust ross incom.

RedUCTION OF CRedIT: An uction aow unr th Prsona Incom Tax lawfor an amount incurr b th taxpar on which th crit is bas is ruc b thamount of th crit. Ca . R. & Tax. C. 17052.25

California


C R E D I T

D E D U C T I O N

C O M M E N T S


6/19




$2,000.00 pr uaifi fostr chi

Offr

Not Offr

effcti for tax ars binnin on or aftr Januar 1, 2008, a taxpar wi b aow acrit aainst th tax impos b ga. Co Ann. 48-7-20 for th aoption of a uaififostr chi. Th amount of such crit wi b $2,000.00 pr uaifi fostr chi pr tax-ab ar commncin with th ar in which th aoption bcoms fina an nin in th

ar in which th aopt chi attains th a of 18. In no nt must th tota amount ofth tax crit unr this Co sction for a taxab ar xc th taxpars incom tax i-abiit. An unus tax crit wi b aow to b carri forwar to app to th taxparssuccin ars tax iabiit. No such tax crit wi b aow th taxpar aainst priorars tax iabiit. Th trm uaifi fostr chi mans a fostr chi who is ss than 18ars of a an who is in a fostr hom or othrwis in th fostr car sstm unr th di-ision of Fami an Chirn Srics of th dpartmnt of Human Rsourcs. [ ga. Co

Ann. 48-7-29.15 .]

Georgia


C R E D I T

D E D U C T I O N

C O M M E N T S


7/19




varis pnin on th of incom

Not Offr

Offr

A taxpar can caim as an aitiona itmiz uction on his or hr Iowa rturn, aunrimburs amounts pai or incurr b th taxpar in th aoption of a chi pac b aicns anc, an anc that mts th proisions of th intrstat compact to which Iowais a part, or b a prson makin an inpnnt pacmnt unr Iowa aw. Th amount of

th uction is that amount of unrimburs xpnss which xc 3% of th taxparsnt incom, or th combin nt incom of a husban an wif in th cas of marri tax-pars fiin a joint rturn. quaifin xpnss incu mica an hospita xpnss of thbiooica mothr rat to th chis birth, a fs, wfar anc fs, an othr costsratin to th aoption of a chi, which ar not caim swhr on th Iowa rturn

Iowa


C R E D I T

D E D U C T I O N

C O M M E N T S


8/19




varis pnin on th of xpns

Not Offr

Offr

Th fs pai b a taxpar to an aoption anc for th taxab ar for th aoption ofa minor chi is aow as an xmption aainst part B incom to arri at Part B taxabincom. Th xmption for th fu amount of aoption anc fs is aow rarss ofth taxpars ajust ross incom. Th xmption is aso broan to incu fs pai

b th taxpar within th taxab ar to an icns aoption anc rarss of whthrth aoption actua taks pac urin th ar. Mass. gn. l. Chaptr 62 3(B)(b)(5)

Massachusetts


C R E D I T

D E D U C T I O N

C O M M E N T S


9/19




Within Maran: Max $6,000 if spcia n chi; Max $5,000 if not a spcia n chi.Non-Maran Chi: Max $3,000 if spcia n chi; Max $2,000 if not a spcia n chi.

Not Offr

Offr

expnss in aoptin a rsint chi: If a chi is a Maran rsint at th tim of aop-tion, Maran aows Maran aoptin parnts to uct rasonab an ncssar aop-tion fs, court costs, attorn fs, an othr xpnss not xcin: $6,000 incurr in

th aoption of a chi with a spcia n, if th aoption is ma throuh a priat, not forprofit, icns aoption anc or a pubic chi wfar anc . Maran aows $5,000that a Maran parnt incurs in th aoption of a chi without a spcia n. Th aop-tion must b ma throuh a priat, nonprofit, icns aoption anc or pubic chi

wfar anc. [ M. Co Ann. Tax-gn. 10-208(b)(1) .]

expnss in aoptin a nonrsint chi: If th chi is not a Maran rsint at th timof aoption, Maran aows Maran aoptin parnts to uct rasonab an ncssaraoption fs, court costs, attorn fs, an othr xpnss not xcin $3,000 incurrb parnts who aopt a chi with a spcia n. Maran aows up to $2,000 for aoptionof a chi without a spcia n. Th aoption must b ma throuh a priat, nonprofit,icns aoption anc or pubic chi wfar anc. [ M. Co Ann. Tax-gn. 10-

208(b)(2) .]

Maryland


C R E D I T

D E D U C T I O N

C O M M E N T S


10/19




Michigan


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $1,200

Offr

Not Offr

Th aoption xpnss crit is rpa ffcti Januar 1, 2012. Unti dcmbr 31,2011, an iib taxpar can caim a crit ua to th taxpars uaifi aoption x-pnss that xc th amount of th fra incom tax crit for uaifi aoption x-pnss caim unr IRC 23 , or $1,200 pr chi, whichr is ss. Mich. Comp. laws

Ann. 206.268


11/19




Minnesota


C R E D I T

D E D U C T I O N

C O M M E N T S

Sam as Fra

Not Offr

Offr

Minnsota has no proision for xpnsin aoption costs, or an crits for aoptions xpnss;s xpanation pararaph 55,510, fra & Stat comparison an pararaph 57,000, crits


12/19




Mississippi


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $2,500

Offr

Not Offr

effcti Januar 1, 2006, a crit aainst th prsona incom tax is aow for uaifiaoption xpnss up to $2,500 for ach pnnt chi a aopt b a taxpar un-r th aws of Mississippi an caim in th tax ar th aoption bcoms fina. Th taxcrit ma b carri forwar for th nxt thr succin tax ars. Th crit is not a-

ow for an chi for which a $1,500 xmption is caim urin th sam tax ar unrMiss. Co Ann. 27-7-21() . Th trm _uaifi aoption xpnss_ mans an has thsam finition as that trm has in IRC 23 . [ Miss. Co Ann. 27-7-22.32 .]


13/19




Missouri


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $10,000; must b spcia ns chi

Offr

Not Offr

An prson rsiin in Missouri who a aopts a spcia ns chi is iib to rcia tax crit ua to th ssr of $10,000 or th actua amount of uaifi xpnss incurrin th aoption of ach spcia ns chi. Th crit ma b us to ruc iniiuaincom tax. Th ssr of on-haf of th actua amount of uaifi xpnss incurr or

$5,000 ma b us to ruc th incom tax on th aopti parnts iniiua incom taxrturn for th tax ar in which th spcia ns chi is pac in th hom. Th rmainintax crit ma b us to ruc th incom tax in th tax ar th aoption is fina. Onon $10,000 crit is aaiab for ach spcia n chi that is aopt. Mo. Co Rs.10-400.200


14/19




North Carolina


C R E D I T

D E D U C T I O N

C O M M E N T S

50% of Fra Crit

Offr

Not Offr

effcti for taxab ars binnin on or aftr Januar 1, 2007 an rpa ffcti fortax ars binnin on or aftr Januar 1, 2013, a taxpar who is aow a fra aoptiontax crit for th taxab ar is aow a crit aainst North Caroina prsona incomtax ua to 50% of th amount of th fra aoption tax crit. N.C. gn. Stat. 105-

151.32(a)


15/19




Oregon


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $1,500

Offr

Not Offr

For tax ars binnin on or aftr Januar 1, 2000, an bfor Januar 1, 2006, a crit isaow aainst th prsona incom tax for uaifi aoption xpnss pai or incurr bth taxpar urin th tax ar. Th crit is ua to th ssr of:

uaifi aoption xpnss pai or incurr b th taxpar urin th tax ar ssth fra aoption xpnss crit;$1,500; or,th fra aoption xpnss crit.

Or. R. Stat. 315.274(3)


16/19




Rhode Island


C R E D I T

D E D U C T I O N

C O M M E N T S

25% of fra crit for tax ars 01/01/06 thru 12/31/2010

Offr

Not Offr

For tax ars binnin on or aftr Januar 1, 2006, a taxpar ntit to th fra aop-tion crit is ntit to a crit aainst th Rho Isan prsona incom tax if th aoptchi was unr th car, custo, or suprision of th Rho Isan dpartmnt of Chi-rn, youth, an Famiis prior to th aoption. Th amount of th crit is ua to 25%

of th fra crit. For tax ars binnin on or aftr Januar 1, 2011, th crit is notaaiab aainst prsona incom tax. R.I. gn. laws 44-30-2.6(c)(2)(l) ; R.I. gn. laws 44-30-2.6 Rho Isan taxab incom


17/19




South Carolina


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $2,000

Not Offr

Offr

A $2,000 uction is aow for an aopt spcia ns chi as fin b statut.S.C. Co Ann. 12-6-1140(7)


18/19




Wisconsin


C R E D I T

D E D U C T I O N

C O M M E N T S

Max - $5,000

Not Offr

Offr

For taxab ars binnin aftr dcmbr 31, 1995, an amount up to $5,000 that is x-pn urin th prio that consists of th ar to which th caim rats an th prior 2taxab ars, b a fu-ar rsint of this stat who is an aopti parnt, for aoption fs,court costs or a fs ratin to th aoption of a chi, for whom a fina orr of aoption

has bn ntr unr s. 48.91(3) urin th taxab ar. Wis. Stat. 71.05(6)(b)(22)


19/19

Documents

The Adoption Journey Project // Adoption State Tax Credit Details