If you have a dream of building your own family the option of adoption may be for you. At the law office of Raina D. Cornell, Attorney at Law, we provide representation to prospective adoptive parents and birth parents in all types of adoptions. Whether you are considering adopting a child you know, a domestic adoption or a step-parent adoption, we can help you reach your goal of building a safe, forever family. We assit with every type of adoption and adoption related matter in Ohio and across the United States.
FEDERAL AND OHIO LAW MAKE ADOPTION MORE AFFORDABLE
FREQUENTLY ASKED QUESTIONS:
To help make adoption more affordable, Ohioans can benefit from both a federal and a state adoption income tax credit.
Q: What, exactly, is the federal adoption income tax credit?
A: In 2020 the federal adoption tax credit could be worth up to $14,300. In 2021 it’s value increases to $14,440.
Q: What are “qualifying adoption expenses” for the federal adoption income tax credit?
A: According to the IRS, qualifying adoption expenses include “reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including meals and lodging) and other expenses related to, and whose principal purpose is for, the legal adoption of an eligible child.”
Q: Who qualifies for the federal adoption income tax credit?
A: The adoption tax credit begins to phase out for filers with modified adjusted gross income of $216,600 in 2021.
Q: Do all adoptions qualify for the federal adoption tax credit?
A: All legal adoptions qualify except step-parent adoptions. Note that overseas adoptions must be finalized and the child deemed a U.S. citizen in order to be legal.
Q: What about special needs adoptions?
A: Domestic special needs adoptions are defined as applying to adoptive children with special needs who are U.S. citizens and are determined by the state of residence to qualify for financial subsidy of the adoption, as well as for both the federal and state adoption income credit. If you are adopting a child with special needs you are eligible to claim the maximum federal adoption tax credits regardless of the actual adoption expenses incurred.
Q: Is the Ohio tax credit separate from the federal adoption income tax credit?
A: Yes. In addition to and separate from the federal adoption income tax credit, the state allows Ohio residents a $10,000 Ohio income tax credit for a family that legally adopts a child.
Q: What if an Ohio family adopts two or three children? Is the family eligible for twice or three times the state and federal tax credit?
A: Yes, an Ohio family is eligible for the $10,000 Ohio income tax credit as well as the federal tax credit every time it adopts a child that meets the standards the law requires.
Q: Is the adoptive family eligible for the federal and state income tax credit regardless of the age of the child being adopted?
A: The law says the child must be a “minor” (under age 18) if the adoptive family is to receive the credit from either the state or the federal government.
Q: When does the adoptive family receive tax credit?
A: The adoptive family receives the adoption tax credit from both the state and the federal government when the child is “legally adopted.” An adoption becomes legal when the final decree of order of adoption is issued by the proper court under the laws of the state or nation under which the child is adopted. In the case of an interlocutory order of adoption, the adoption becomes legal when the order becomes final under the laws of the state or nation. An interlocutory order is a temporary or interim order until the final order is issued, usually six months after the child has been in the adoptive parents’ home.
Q: Are there any circumstances in which the adoptive family would not qualify for the state or federal adoption income tax credit?
A: A “legal adoption” does not include the adoption of a minor child by the child’s stepparent. In such cases, there is no adoption income tax credit from either the state or the federal government.
CHANGES TO ADOPTION LAW:
There have been recent changes to the law to allow more access to adoption records. The Ohio Department of Health, Office of Vital Statistics, houses birth and adoption records of persons born in Ohio and adopted anywhere in the United States.
Below are the adoption records available based upon the date the adoption was finalized:
- Adoptions Prior to January 1, 1964 – Adoption records are open to adoptee’s whose birth occurred in Ohio, with proper identification. Also available for lineal descendants with proof of identity and genetic linkage.
- Adoptions Between January 1, 1964 and September 18, 1996 – Adoption records are open to adoptee’s whose birth occurred in Ohio, with proper identification. Also available for lineal descendants with proof of identity and genetic linkage.
- Adoptions After September 18, 1996 – Adoption records are open to adoptive parents when the adopted person is between 18-21 years of age. If the adopted person is 21 years or older, the records are open to the adoptee.