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March 30, 2007, Newsletter Issue #92: Adoption Tax Credit

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Tip of the Week

A federal adoption tax credit is available for up to about $10, 000 per child. This credit is available for domestic or international adoptions. Parents who adopt domestically can claim credit for qualifying expenses even if an adoption is unsuccessful. Parents who adopt a child from the U.S. with special needs can claim full credit without qualifying expenses. Some states offer tax credits as well, in varying amounts. Financial help is available by the state for adoptions of children with special needs. Adoption subsidies can assist families with the special needs expenses and services. Some companies also offer adoption benefits to assist with costs as well as paid or unpaid adoption leave. The federal tax credit must be honored in conjunction with any adoption benefits offered by employers.



2

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