What are qualifying expenses for the adoption credit?
If you have adopted a child, or are in the process of adopting a child, you can claim the adoption credit for certain qualifying expenses related to that adoption. Specifically, qualifying expenses include adoption fees, court costs, attorney fees, certain travel expenses and any other expenses directly and primarily related to a legal adoption. Expenses which do not qualify towards the adoption credit include any expenses which violate the law, any expenses relating the adoption of your spouse’s child, and expenses paid for with funds from a government program. The only exception to the distinction between qualifying expenses and non-qualifying expenses is when you are adopting a child with special needs. In that situation, you can claim an adoption credit for any related expenses, without regard to whether they are “qualifying” expenses. A child is considered to have special needs if: (i) the child is a citizen or resident of the United States; (ii) a state has determined that the child should not be returned to his or her parents’ home; and (iii) a state has determined that the child would not likely be adopted without assistance to the adopting parents.