Did you know that you could receive a tax credit for certain adoption-related expenses? If you’ve recently adopted a child or are considering doing so, you should learn about which adoption expenses are deductible.
What Are Qualfied Expenses?
The IRS offers guidelines on which adoption-related expenses qualify for the deduction. You can deduct the cost of:
- Reasonable and necessary adoption fees
- Attorney fees and court costs
- Traveling expenses related to the adoption process
- Other expenses related to the legal adoption of a child
It’s important to note that you can deduct expenses even if you incur them before the adoption, as long as they are related to the adoption process. For example, if you conducted a home study before you identified a child, you could still deduct the cost of this on your taxes.
How Much Can You Deduct?
The current amount that you can deduct for qualified adoption expenses is $13,570 per child. You can split the up this deduction over multiple years if the adoption process takes a significant amount of time and you end up spending money in more than one tax year.
If you want to learn more about tax deductions related to adoption expenses, turn to the tax resolution pros at Taxation Solutions, Inc. We’re here to answer any questions you might have about which adoption-related expenses are deductible!