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10 Tax Credits for Single Parents

        Money | Taxes

3
Adoption Credit
If you're a single parent who adopted a child, you can qualify for an adoption credit. Thomas Perkins/iStockphoto/ThinkStock
If you're a single parent who adopted a child, you can qualify for an adoption credit. Thomas Perkins/iStockphoto/ThinkStock

If you were one of the many single parents who completed an adoption in 2014, congratulations! The IRS has a gift for you, in the form of a tax credit.

The Adoption Tax Credit is designed to help offset all the expenses that go along with the adoption of a child under the age of 18 or an individual of any age who cannot care for himself or herself because of a physical or mental disability. Qualified adoption expenses include attorney fees, court costs and travel costs like lodging and meals that aren't reimbursed by another government entity or employer.

For tax year 2014, the maximum Adoption Tax Credit is $13,190 as long as your modified adjusted gross income is less than $197,880. If it is over this amount, but under $237,880, you will receive a tax credit according to a sliding scale.

Keep in mind that when it comes to foreign adoptions, the Adoption Tax Credit isn't available until the adoption is final; in cases of qualified adoptees who are U.S. citizens, the credit can be claimed while the adoption is still in process and, if more expenses are incurred, the following year when the adoption is finalized. Even if the tax credit is received over two years, it still cannot equal more than the maximum amount per child of $13,190 [source: American Adoptions, IRS].


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