Tax credits are available in 2008 to help parents offset the cost of adoption. An $11,650 credit is available to cover "qualified adoption expenses." Adoptive parents can also deduct up to $11,650 of expenses paid by an employer.

"To qualify for the credit for the exclusion, the expenses must be 'qualified adoption expenses.' These are the reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging) while away from home, and other expenses directly related to the legal adoption of an 'eligible child.'"

Surrogate parenting is not included in the tax credit, nor is adoption of a spouse's child. Expenses associated with an unsuccessful adoption attempt may also qualify. Source: Ft. Collins Coloradoan

Labels: adoption_costs, tax_deductions, credits

Posted By: Aspen Education Group