On June 7, 2001, The United States Congress enacted the Hope for Children Act as part of the Tax Relief Reconciliation Act of 2001.  The Hope for Children Act raised the adoption tax credit from $3,000.00 to $10,000.00 per household.  This tax credit applies to all households who have an annual income of $190,000.00 or less. 

Specific information about the Adoption Tax Credit can be found in IRS publication 968.  The publication explains the details of the tax credit and how it may apply to you.  This information can be downloaded on-line at www.irs.gov.

In order to adopt and receive the tax credit, a married couple must earn at least $18,775.00 annually.  This figure represents 125% of the federal poverty guidelines.  Please remember that Homecoming Adoptions is an international adoption practice and does not intend to provide legal or financial advice.  We recommend that you consult with an accountant or tax attorney to address any questions you may have about your specific situation.