SDL Financial Group

Tax Tip❗

The adoption tax credit helps families with adoption-related expenses.

The adoption tax credit lets families who were in the adoption process during 2022 claim up to $14,890 in eligible adoption expenses for each eligible child.
Taxpayers can apply the credit to international, domestic, private and public foster care adoptions.

Who is considered an eligible child ❓
An eligible child is an individual who is under the age of 18 or is physically or mentally incapable of caring for themself.

Qualified expenses
Qualified adoption expenses include such things as:

☑️Adoption fees
☑️Court costs and legal fees
☑️Adoption related travel expenses like meals and lodging
☑️Other expenses directly related to the legal adoption of an eligible child.

Expenses may be deductible even if the taxpayer pays them before an eligible child is identified. For example, some future adoptive parents pay for a home study at the beginning of the adoption process. These parents can claim the fees as qualified adoption expenses.

Qualified adoption expenses do not include expenses that a taxpayer pays to adopt their spouse’s child. They may, however, include adoption expenses paid by a registered domestic partner if that partner lives in a state that allows a same-sex second parent or co-parent to adopt their partner's child.

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