There is no doubt, adoption can be costly. Fortunately, a tax benefit is available for qualifying adoptions.

The U.S. Adoption Tax Credit can help offset the costs of adoption, expenses associated with a failed domestic adoption, or the financial obligations of caring for a qualifying special needs child.

There is no doubt, adoption can be costly. Agency fees, attorney fees, court costs, and travel expenses can add up quickly. Fortunately, a tax benefit is available for qualifying adoptions. You may even be eligible for the credit if you adopted a child out of the foster care system but did not incur out-of-pocket expenses.

Credit Available

The maximum tax credit for 2015 is $13,400 per child for households with an adjusted gross income of $201,010 or less.

Eligible Adoptions

  • Finalized foreign and domestic adoptions
  • Costs incurred from failed domestic adoptions
  • Special needs* adoptions that meet the following criteria: The child is a United States citizen, the child’s biological parents’ rights have been terminated, the child is unlikely to be adopted without assistance provided to the adoptive family.
  • Adoptions of individuals over the age of 18 who cannot physically or mentally care for themselves… read more.

This article was published by adoption.com.

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