Читать книгу J.K. Lasser's 1001 Deductions and Tax Breaks 2022 - Barbara Weltman - Страница 67

In 2021, your income is $100,000; you pay $9,000 in attorney's and adoption agency fees to adopt a child who is not a special needs child (the adoption becomes final in 2021). You can claim a tax credit of $9,000 (100% of your eligible costs that do not exceed $14,440). If the child adopted is a special needs child, then the credit is $14,440, even though this is greater than the amount of actual adoption expenses.

If your employer pays or reimburses you for adoption expenses, you may exclude this benefit from your income; it is tax free to you if you meet eligibility conditions. The exclusion has the same dollar limit and income limits as the credit.

If a tax‐exempt organization makes a payment to help pay adoption costs, the payment is not taxable. The payment is viewed as a gift to the recipient.

If you take withdrawals from your 401(k) plan to pay for adoption expenses, you are not subject to the 10% early distribution penalty even though you're under age 59½. However, the penalty waiver only applies to distributions up to $5,000 for the adoption of an individual (other than a child of the taxpayer's spouse) who is under age 18 or who has a physical or mental incapacity making the person incapable of self‐support. The distribution is taxable, but can be recontributed to a retirement plan so that you can recoup any taxes paid on the distribution by filing an amended return.