You can claim both the credit and the exclusion for expenses of adopting an eligible child.
Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child.
Qualified adoption expenses include:
Adoption fees
Attorney fees
Court costs
Travel expenses (including meals and lodging) while away from home
Re-adoption expenses relating to the adoption of a foreign child
Qualified adoption expenses do not include expenses:
For which you received funds under any state, local, or federal program
That violate state or federal law
For carrying out a surrogate parenting arrangement
For the adoption of your spouse's child
Paid or reimbursed by your employer or otherwise
Allowed as a credit or deduction under any other provision of federal income tax law
Additional information on adoption expenses including eligible child rules and employer-provided adoption assistance may be found in the IRS Instructions to Federal Form 8839.
To enter information for an Adoption credit (Form 8839) in TaxACT:
From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
Click Other Credits to expand the category and then click Qualified adoption expenses
The program will proceed with the interview questions for you to enter the appropriate information
Your request has been submitted
You have been successfully added to the TaxAct Do Not Sell list.