Yes, taxpayers can receive a tax credit for all qualifying adoption expenses up to $14,300 in 2020. An eligible child is an individual under the age of 18 years or is physically or mentally incapable of self-care. Taxpayers may also exclude from income qualified adoption expenses paid or reimbursed by an employer, up to the same limit as the credit. The qualified adoption expenses includes:
- Reasonable adoption fees,
- Court costs and attorney fees,
- Traveling expenses (including amounts spent for meals and lodging while away from home), and
- Other expenses that are directly related to the legal adoption.
The qualified adoption expenses can be claimed on the year on the year expenses are paid, whether it's domesctic or foreign adoption, and the year adoption was finalized.
