Adoption Tax Credit and Benefit Exclusions

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Adoptive families may be able to take a tax credit for qualified adoption expenses paid to adopt an eligible child. The adoption credit is not available for any reimbursed expenses such as non-recurring adoption expenses. In addition to the credit, certain amounts reimbursed by your employer for qualifying adoption expenses may be excludable from your gross income. The credit and exclusion for qualifying adoption expenses are each subject to a dollar limit and an income limit.

Eligible Children

An eligible child is:

Qualified Adoption Expenses

Qualified adoption expenses include:

Qualified adoption expenses do not include expenses:

IRS Form 8839

IRS Form 8839 will assist you in determining the amount of your adoption credit and any employer-provided adoption benefits you can exclude from your income. You can claim both the credit and exclusion for expenses of adopting an eligible child. Instructions for completing IRS Form 8839 can be found at: irs.gov/instructions/i8839/ch01.html#d0e21.

Additional Adoption Tax Credit Resources

13-OCFS-ADM-05 - Notification to Prospective Adoptive Families of the Federal Adoption Tax Credit (PDF)

The Department of the Treasury Internal Revenue Services Topic 607 - Adoption Credit explains two tax benefits available to offset the expenses of adopting a child.

For assistance contact the Internal Revenue Services at www.irs.gov or a tax advisor.