11 Feb IRS ADOPTION TAX CREDIT 2021
On October 26, 2020 the IRS issued Revenue Procedure 2020-2045 which updated various inflation adjusted amounts in the Internal Revenue Code including the Federal Adoption Tax Credit.
Accordingly, for adoptions finalized in calendar year 2021 the maximum credit will be $14,440 (up from $14, 300) and the maximum credit will begin to be phased out when the adoptive parents’ Modified Adjusted Gross Income (MAGI) for 2021 is greater than $216,660, and they will not be entitled to any credit if their MAGI is equal to or greater than $256,660 for 2021.