This bill proposes to amend the current statute regarding individual income tax deductions for unreimbursed adoption expenses. Under the current law, taxpayers can subtract up to $3,000 for these expenses, which include medical costs, counseling, legal fees, and other related costs incurred in the year the final adoption order is granted. The bill would increase this subtraction to $5,000 for single individuals or heads of households and $10,000 for married couples filing jointly or separately, applicable for taxable years beginning January 1, 2026.

Additionally, the bill clarifies that for married couples filing separately, the total subtraction allowed between both taxpayers cannot exceed $10,000. It also retains the provision that allows taxpayers to claim costs incurred in prior years, but only in the year the final adoption order is granted. The proposed changes aim to provide greater financial support for individuals and families undergoing the adoption process.

Statutes affected:
Introduced Version: 43-1022
House Engrossed Version: 43-1022