Adoption Credit
Adoption Credit
The Adoption Tax Credit is a valuable benefit for adopting families, but one of the most complicated tax law provisions relevant to middle-income families. The adoption credit is meant to repay thepayer for attorney’s fees, court costs, and traveling expenses. In U.S. tax law, a direct dollar-for-dollar reduction in one’s tax liability for each child under the age of 18 that a payer adopts. A nonrefundable credit for qualified adoption expenses incurred for each desirable child. The limit on the credit is listed to inflation.
Adoption Tax Credit Eligibility Requirements
To be eligible for the adoption credit, you must:
Adopt an eligible child, and
Pay qualified adoption expenses out of your own pocket.
When to Claim the Adoption Credit?
What year you can claim the adoption credit depends on when the adoption was terminated and whether the adopted child is a US citizen, resident alien or foreign national.
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