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 tab. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Other Credits in the middle of the screen 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