Adopting a child? Tax benefits can help defray the cost

Description

Abstract: The process of adopting a child is expensive. Although expenses are minimal for adoptions through the foster system, the cost of adopting a child through a private agency averages around $43,000 in the United States. Fortunately, there are tax benefits that can help offset some of the costs. This article details a tax credit for qualified adoption expense and an income exclusion for employer-provided adoption assistance. A sidebar explains the rules for adopting a child with special needs.