LIFE EVENTS
QUESTIONS

Considering Adoption

Q.1. What expenses are associated with the process of adoption?
A.

The cost of adopting a child varies depending upon a number of factors including whether it is a public agency which charges no fee or a private agency that can charge in the thousands of dollars. In addition, there will be legal fees. Also, circumstances such as the birth place of the child and age of the child will affect costs. There are a number of issues which you need to investigate.

Q.2. What financial issues arise when we adopt?
A.

Once you have adopted a child there are the normal child-rearing financial concerns. In addition to the day-to-day costs associated with raising a child there are financial security and educational expenses that will have to be considered.

Q.3. What is the Federal Adoption Expense Tax Credit?
A.

The Federal Adoption Expense Tax Credit provides a tax credit for eligible adoption expenses for the completed adoption of a child under the age of 18. These include: fees paid to an adoption agency; legal fees; reasonable travel and living expenses; mandatory fees paid to a foreign institution and other reasonable expenses.