In Kansas, a family who adopts a child may be eligible to receive a tax credit from the government. Beginning in 1996, legislation was written to allow for individuals who adopted a child to receive a General or Special Needs tax credit when they file. Although this credit was set to expire in 2012, The American Taxpayer Relief Act of 2012 made this federal adoption tax credit permanent. The adoption credit is available to most agency, private or public adoptions, however it is not available for stepparent adoptions.
How Much Tax Credit Can a Family Receive
The credit act states that the amount of the credit for 2013 was $12,970, which is an increase from $12,650 in 2012. This amount has since continuously increased annually to keep up with inflation. This is the standard amount of credit given, unless a family’s annual household income is greater than $194,580 then the amount may decrease. If the family household annual income reaches $234,580 then the amount may phase out completely as these families are presumed to not need the credit. Annual ceiling amounts for families who make a certain amount of income per year will also be adjusted for inflation.
If this is your first time applying for the credit after adopting a child, you will need the following supporting documentation:
- Federal Form 8839 Parts I, II, and III
- Adoption Decree
Tax Credit for Special Needs Child Adoption
In comparison to a general adoption credit, an additional $1,500 credit is available for any Kansas resident who adopts a child who is in the custody of the state (Kansas Department from Children and Families) or a special needs child. Regardless of how much is spent on the adoption, if you adopt a special needs child, you will receive the full amount of the credit. Also, accountants have stated that you may exclude the amount of the tax credit from your gross income, if your employer has a qualified adoption assistance program that pays you any amount.
If you are applying for a “child with special needs” credit, you will need the aforementioned documentation plus the following:
- Agency Consent to Adoption (the Kansas Department for Children and Families can provide you with a copy of this document); and
- Adoption Support Agreement or Adoption Assistance Agreement (the Kansas Department for Children and Families can provide you with a copy of this document).
Kansas Adoption Tax Credit State Law
The law for state adoption tax credits in the Kansas City area, varies between Missouri and Kansas. Under Kansas adoption law, the credit is available for any adoption that qualifies for the federal credit. In addition, a credit is available if it is the adoption is for a special needs child or a child in the custody of SRS. There is a ceiling on the tax credit law that states if the amount of credit goes beyond the taxpayer’s tax liability for the tax year, the excess credit may be carried forward to the next succeeding year or years until the total amount of the credit has been used.
Contact Tom McDowell – Experienced Kansas Adoption Attorney Today
If you are a parent or stepparent and you have questions regarding the adoption process and what tax credits pay be available to you, our team of Kansas Adoption Lawyers is experienced and here to help. With over 40 years of experience, our attorneys have extensive knowledge in the area of adoption and family law and we have assisted many families through the process. We always keep the child’s best interest in mind, and we will give you confidence during the process that your matter is being handled in the most effective way possible. Call a Kansas Adoption Attorney at McDowell Chartered Legal Services today (316) 633-4322 to see how we can successfully assist you with your adoption matter.