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What Is an Adoption Tax Credit?



An adoption tax credit, according to the IRS, is the amount of expenses paid out to adopt an eligible child, that is then subtracted from an adoptive parent's tax liability. These expenses are those spent the year prior to when the adoption is finalized.

An adoptive parent may not claim the cost of a step-parent adoption or amounts reimbursed or paid for by an employer, government agency, or other organization.

To learn more about the adoption tax credit, what qualifies as an adoption expense, and what defines an eligible child please see the Tax Planning GuideSite.

Suggested Reading:

Adoption Credit - IRS.gov

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