Tax Benefits

Federal Tax Benefits

Federal tax law states that you may be able to claim tax credits and exclusions for expenses related to adopting an eligible child. However, you cannot claim both a credit and an exclusion for the same expense. Qualifying expenses include:

• reasonable and necessary adoption fees
• court costs
• attorney fees
• traveling expenses while away from home
  
• other expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child

Note that adoption expenses must be documented with receipts except in the case of special needs adoptions finalized after December 31, 2002.

Current federal tax laws allow a substantial tax credit on your federal tax return for qualifying expenses related to adopting an eligible child. However, federal tax laws change from year to year. For a current, complete and accurate explanation of federal tax benefits related to adoption, visit the IRS website or call 800-TAX-FORM.

Illinois State Tax Benefits

To receive a tax booklet regarding Illinois state adoption tax benefits, call the Center for Economic Progress (formerly the Center for Law and Human Services) at 312-252-0280.