Arizona:
Arizona offers a $3000 Tax Deduction Cap to its residents. Please see your local tax professional to see if you qualify.
California:
California offers a tax credit that is contingent on overall expenses. For more information, please consult with your local tax professional.
Iowa:
You may be eligible for an additional itemized deduction for a portion of the adoption expenses paid in 2008. This deduction is taken in the year that the expenses are paid, even if the child is not placed in your home during that year or if the adoption does not occur. Refer to http://www.state.ia.us/tax/1040EI/Line/08Line26.html or consult with your local tax professional for further assistance.
Kansas:
Kansas offers its citizens a tax credit that is up to 25% of the federal credit. Please consult with your local tax professional for further guidance.
Mississippi:
Beginning in 2006, the state of Mississippi established a tax credit for qualified adoption expenses not to exceed $2500/year. Qualified applicants can apply for this the year that the adoption is finalized. Please refer to www.mstc.state.ms.us for further information.
Missouri:
The state of Missouri offers its residents state adoption tax credits. Beginning in 2004, all tax credits are paid on an apportioned basis rather than first come/first serve. The amount is contingent on number of applicants. Please see your local tax representative for further assistance.
Montana:
Montana offers its citizens a $1000 tax credit payable in the tax year the adoption is final. Only one credit is allowed for each eligible child. For a list of qualifiers, please refer to http://data.opi.mt.gov/bills/mca/15/30/15-30-194.htm.
North Dakota:
There is a $1750 tax credit for a child who was adopted during that tax year. Please see your local tax professional for further guidance.
Ohio:
Residents of Ohio can claim a credit against your tax if you adopted a minor child (under 18 years of age) during the taxable year. The amount of credit is $1500 per child adopted. Any unused amounts can be carried forward for up to two years.
Oklahoma:
An Oklahoma resident may deduct “nonrecurring adoption expenses: not to exceed $20,000 per calendar year. Expenses are to be deducted in the year in which they were incurred. See a local tax professional for further assistance.
South Carolina:
There is a $2000 tax deduction allowed on the South Carolina tax return for a “special needs” adoption. A “special needs child” means a person under the age of 18 at the time of adoption, who is a dependent of a public or private non-profit adoption agency, is legally free for adoption and has been determined by the agency to have specific conditions. Please see your local tax professional for further information.
Utah:
Utah residents who adopt a child with special needs may claim a refundable credit of $1000 for each child adopted. This credit may only be claimed in the tax year the court issues the order granting the adoption and may not be carried forward. To claim this credit, the adoption must be finalized in Utah and the child must meet one of the following conditions:
West Virginia:
The state of West Virginia offers a one-time credit, in the amount of $2000, that may be applied to Personal Income Tax upon the adoption of a child. More information may be found at http://www.wvtax.gov/taxCreditSchedulesAndForms.html.
Wisconsin:
Wisconsin law allows a subtraction from income for up to $5,000 of adoption expenses (including adoption fees, court costs, and legal fees). This subtraction must be claimed in the year in which a final order of adoption is entered by Wisconsin court. Due to the fact that this subtraction reduces taxable income, the benefit of this subtraction is approximately $325.00.
