Even the tax preparer couldn't believe the Ward family was receiving a $54,000 refund and had to check it 10 to 15 times. The couple is receiving the huge sum of money because of the federal adoption tax credit, which came into effect this year.
Since the Ward family adopted five new kids, they are able to cash in on a tax credit of up to $13,170 per child. Although this tax credit was available since 1997, this year is the first time it is refundable. Some things you need to know about the adoption credit:
- You're entitled to the full amount if you adopt a special-needs child.
- This is a one-time tax credit.
- The IRS says it requires a lot of documentation to receive this tax benefit, so don't try to pull one over on Uncle Sam and attempt to cash in on it if you don't qualify!
Did you have any bonus tax credits this year?