Adoption Lawyer Serving Leesburg, Loudoun, Fairfax, Ashburn, Manassas, Winchester and Northern Virginia --- The Law Firm of Karen S. Law.

Financial Help

There is help available. The federal Adoption Tax Credit provides up to $14,660 for qualifying expenses paid to adopt an eligible child in 2021. The credit is indexed for inflation and will increase annually. Eligible expenses include adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging) and other expenses directly related to your adoption.

There is an income limit for this credit. Further, many large employers offer adoption assistance. Those payments may qualify for exclusion from your income for tax purposes in addition to the tax credit. You may exclude up to $14,660 from your income in 2021. So, for example, if your employer offers adoption assistance payments of $5,000 and your total adoption related expenses were $19,660, you could claim $14,660 as a tax credit AND exclude $5,000 from your income. However, if your total expenses were $14,660 you could not take the credit and the exclusion-the same expenses cannot be counted twice. The income limits for the tax credit also apply to the exclusion.

If you adopt a special needs child or a child from foster care, the cost is usually less and a monthly adoption subsidy is often available to help pay for things like remedial educational services, physical therapy and medical care. You may also take the entire amount of the tax credit even if you donít incur those costs.

Serving clients in Loudoun County, Fairfax County, Prince William County, Arlington County, Alexandria, Frederick County, Albermarle County, Culpeper County, Dinwiddie County, Pittsylvania County, Rockingham County, Shenandoah County, Spotsylvania County, Stafford County, Warren County, Westmoreland County, Virginia Beach and throughout the Commonwealth of Virginia.

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