Federal Adoption Credit Information

Programs that provide information and guidance for eligible individuals who need assistance in determining whether they qualify for the federal Adoption Credit which allows families to deduct qualifying expenses paid to adopt an eligible child (including a child with special needs) from their tax bill for the year following the year of payment. In addition to the credit, certain amounts paid by an individual"™s employer for qualifying adoption expenses may be excludable from the person"™s gross income. For both the credit or the exclusion, qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to and for which the principal purpose is the legal adoption of an eligible child (i.e., a child younger than age 18 who is physically or mentally incapable of caring for him or herself). The adoption credit is not available for any reimbursed expense.