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Our Adventure with Adoption

September 13, 2018


By: Scott Province, CPA

“Hello Daddy.” Brought to my knees, complete with incoherent babbling, I learned from Wendy Province during a June 2006 continuing education event in North Carolina that I would become an adoptive father. What started out as a dream shared by husband and wife was about to become reality.

Twelve years, two kids, hundreds of stinky diapers, sacrificed hours of sleep, and myriads of homework assignments later, there’s seldom a dull moment in our home.

Our adventure wouldn’t have been successful without the life-saving love and support of kind-hearted family, friends, church connections, teachers, an award-winning CPA firm that has deserved the state and national awards it has won, and the “Big Guy Upstairs.”

Fast forwarding to 2018, we’ve noted that adoptive families can still claim the adoption tax credit under the Tax Cuts and Jobs Act using IRS Form 8839 when filing their personal tax return. The maximum amount of adoption tax credit is $13,810 for 2018 (up from $13,570). The dollar-for-dollar nonrefundable credit against tax is based on the amount of qualified adoption expenses which include reasonable and necessary adoption fees, court costs and attorney fees, travel expenses, and other direct expenses. The credit is subject to phaseout provisions for higher income individuals. Some states including Alabama allow deductions and/or tax credits related to adoption. Interested people can contact our tax team and can learn more about the adoption tax credit at here.