Tax Credit Available to Adoptive Parents

Although adoption is a selfless gesture to a needy child, it does carry with it serious economic choices. Just adopting a child can cost between zero to $40,000, according to the U.S. Department of Health and Human Services.

Since adoption is a legal action is requires associated fees and legal requirements. This often necessitates the presence of a lawyer to help you through the process. If you decide to go through an agency you will need to pay assorted fees to them, such as application and counseling fees, in order to get your child. Then you might need to pay for the child's travel expenses, medical bills and visa to get them into the country.

While adoption can be pricey there are ways to reduce the amount paid overall. One such way is a new tax law through the IRS that lets you deduct qualified adoption expenses. You could be eligible for a deduction of $13,170 to help you offset the costs of your step-parent adoption or other type of adoption.

To learn more about this tax credit, consult with a family law attorney.