4. Adoption Credit
Have you adopted a kid with special needs? If so, you are probably eligible to claim an adoption credit. The taxman says that you can claim the credit if a state has established that your adopted child has special needs. Typically, the maximum amount of money you can get is $14,300.
But, this sum will most likely face a reduction if you’ve had any qualified adoption costs claimed in a prior year/years. And there’s the modified adjusted gross income limitation applied too. So, if you’re looking to benefit from the adoption credit, you have to meet modified adjusted gross income requirements.
Therefore, if you’re a single taxpayer, your MAGI should not exceed $200,000 in order to benefit from the full tax credit ($400,000 for couples).
