ASSEMBLY, No. 2087

STATE OF NEW JERSEY

INTRODUCED JUNE 3, 1996

By Assemblywoman BUONO and Assemblyman BARNES

An Act concerning adoption and supplementing Title 54A of the New Jersey Statutes.

    BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:

    1. a. A taxpayer or a married couple filing a joint tax return shall be allowed to deduct from their gross income, adoption expenses that were paid or incurred during the taxable year. The amount of adoption expenses which may be deducted shall not exceed $5,000.

    b. The deduction allowed under this section shall not apply to a taxpayer or a married couple filing a joint tax return with a gross income exceeding $115,000.

    c. For purposes of this section "adoption expenses" means reasonable and necessary adoption fees, court costs, attorney fees and other expenses directly related to and for the principal purpose of the adoption of a child.

    2. This act shall take effect immediately and shall apply to calendar years beginning after July 1, 1996.

STATEMENT

    This bill allows taxpayers or married couples filing joint tax returns to deduct adoption expenses from their gross income. Under the provisions of the bill, the deduction cannot exceed $5,000. The bill also disallows the deduction for taxpayers or married couples filing a joint tax return with a gross income exceeding $115,000.

Allows taxpayers to deduct adoption expenses from gross income.