If you adopted a child, or if you paid expenses to adopt a child even if the adoption is not yet final, you may receive a dollar-for-dollar tax credit for your expenses.
If your employer reimbursed you for some or all of your expenses, you also may be able to exclude the benefit you received from your taxable income.
The Adoption Credit is a tax benefit that may reimburse you for the expenses you pay to adopt a child. It is based on 100% of your qualified expenses. For 2013, you may receive a credit of up to $12,970 per child.
The credit is based on expenses, including:
You cannot take an Adoption Credit for expenses paid by someone else, such as a government program or your employer.
If your employer reimburses you for adoption expenses, you may not have to pay tax on the value of the reimbursement. Your employer can pay up to $12,970 of your adoption expenses as a tax-free benefit. This tax-free benefit is called an “exclusion.”
If your employer reimburses you for some of your expenses, and you pay other expenses yourself, you may be able to claim both the credit and the exclusion for the same adoption (although not for the same expenses).
A child must be under 18 years old or physically or mentally unable to care for himself or herself.
Additionally, the child cannot be your spouse's child or part of a surrogate parenting arrangement. Finally, the adoption cannot violate state law.
The maximum Adoption Credit is the same for all children, with or without special needs. However, you may receive the full credit of $12,970 for adopting a special needs child, even if your qualified expenses were less than $12,970.
You generally take the Adoption Credit in the year the adoption becomes final. However, for a U.S. adoption, if the adoption is not final, you can take the credit in the year following the year you have the expenses. For a foreign adoption, you must wait until the year the adoption is final to take the credit.
You can exclude employer-provided adoption benefits from your taxable income in the year you receive the benefits, except if you are adopting a foreign child. In that case, you cannot exclude the benefits until the year the adoption is final.
For 2013, the Adoption Credit is nonrefundable. This means it can only be applied to your income tax liability. If you don't owe income tax before the credit for 2013, you can carry any excess credit forward for up to five years.
Both the Adoption Credit and the exclusion begin to be phased out when your adjusted gross income reaches $194,580. They are completely phased out when your adjusted gross income exceeds $234,580.
You claim the Adoption Credit or the exclusion on Form 8839, Qualified Adoption Expenses.
January 1 — Everyone
Federal Holiday (New Year's Day) Details
January 10 — Employees who work for tips
If you received $20 or more in tips during December, report them to your employer Details
January 15 — Individuals
Make a payment of your estimated tax for 2018 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES Details
January 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in December 2018
January 15 — Farmers & fishermen
Pay your estimated tax for 2018 using Form 1040-ES Details
January 21 — Everyone
Federal Holiday (Martin Luther King, Jr. Day) Details
January 31 — All Employers
Give your employees their copies of Form W2 for 2018. If an employee agreed to receive Form W2 electronically, have it posted on a website and notify the employee of the posting.
January 31 — Individuals who must make estimated tax payments
If you did not pay your last installment of estimated tax by January 15, you may choose (but are not required) to file your income tax return (Form 1040) for 2017 by January 31. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of the last installment. If you cannot file and pay your tax by January 31, file and pay your tax by April 15.
January 31 — Payers of gambling winnings
If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W2G.
January 31 — Social Security, Medicare, and withheld income tax
File Form 941 for the fourth quarter of 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until 02-10 to file the return.
January 31 — Certain small employers
File Form 944 to report social security and Medicare taxes and withheld income tax for 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more for 2018 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.
January 31 — Farm employers
File Form 943 to report social security and Medicare taxes and withheld income tax for 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.
January 31 — Federal unemployment tax
File Form 940 for 2018. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you deposited the tax for the year timely, properly, and in full, you have until February 10 to file the return.
January 31 — All businesses
Give annual information statements to recipients of certain payments you made during 2018 Details