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Friday
Feb252011

Tax Tip: Parents Who Adopt Get a Big Tax Break

Photo Courtesy - Getty Images(NEW YORK) -- There are changes in the adoption tax credit.

Eric Smith, who is with the Internal Revenue Service says, "If you adopted a child, you can now claim a credit that can be as much as $13,170 based on the expenses you had in adopting that child."

Smith adds that the credit is refundable, which means you can get it you owe no taxes.

While it's a very generous credit, though, you must submit proof you qualify in order to claim it.

"In most cases, we encourage people to file electronically," Smith says. "But this is a situation where you need to file a return on paper to get this credit."

But Kathy Pickering of H&R Block says you may need expert advice for this one.

"There's a lot of rules about carrying forward expenses and things like that, and so, you could be at risk of not getting the full benefit if you don't understand all the rules."

Copyright 2011 ABC News Radio 

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