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What It Costs Intro              
             

Adoption
Expenses

State Laws and Fees

Before Coming Home

Immediate Needs

Legal Costs

Legal Challenges


Help with
Expenses

Financial Resources

Tax Credit

Dependency Exemption

Employee Benefits

Family/Medical Leave

Military Subsidies

Sliding-Scale Fees

Taxes on Assistance

Loans

 

Taxes on Assistance

Adoption assistance is exempt from taxation. Like child support that a custodial parent receives from a divorced spouse, adoption assistance is not considered as income. However, the level or amount of assistance may affect whether the child can be claimed as a dependent and be listed as an exemption on your income taxes. (Refer to the previous section titled "Dependency Exemption.")

Up to $5,000 in employer-provided adoption benefits (up to $6,000 for special needs adoptions) per child may be excluded from your income. You may claim both a tax credit and an exclusion in connection with the adoption of an eligible child, but may not claim the same expenses twice. As with the tax credit, tax-free adoption benefits are gradually phased out once family income rises above $75,000.

 

More about Help with Expenses

 
 
 
 

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