What is the adoption credit?

If you adopt a child, or even take steps to adopt a child, you may be able to apply some of the related expenses as a credit which will reduce your ultimate tax liability. Specifically, as long as the adopted child is either under 18 years old or someone who is not physically or mentally capable of caring for themselves, you may be able to claim an adoption credit of up to $10,960 (for the 2006 tax year) of certain qualifying expenses. It is important to note that you cannot claim this adoption credit for expenses related to the adoption of your spouse’s child, and you cannot claim the adoption credit if you are married filing separately. For more information about the adoption credit, please see the additional topics to the left.