ADOPTION ASSISTANCE

ADOPTION ASSISTANCE PROGRAMS

 

For employer-sponsored adoption assistance programs, the maximum amount excludible from an employee’s income in 2012 for the adoption of a child (both for regular and special needs adoptions) will be $12,650 (decreased from $13,360 in 2011). The excludible amount starts to phase out for a taxpayer with a modified adjusted gross income that exceeds $189,710 and is completely phased out when such income reaches $229,710.

 

Taxpayers adopting children are eligible for both the adoption credit and the adoption assistance exclusion of adoption expenses paid for through an employer’s adoption assistance plan. However, the same adoption expense cannot qualify for both the adoption credit and the adoption assistance exclusion.

 

The Federal Motor Carrier Safety Administration (FMCSA) issued a new rule, effective, Jan. 3, 2012, prohibiting interstate commercial motor vehicle (CMV) drivers from using hand-held cell phones while driving.


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