6. Adoption Credit
The adoption credit is a tax break that helps taxpayers cover a certain amount of qualified adoption costs per child. The credit begins to incrementally decrease at certain income levels and completely phases out once your modified adjusted gross income (MAGI) exceeds the given threshold for that tax year. For the 2024 tax year, the credit maxes out at $16,810 and is phased out at a MAGI of $292,150 or more.
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