What is the adoption tax credit?
The adoption tax credit basically promotes adoption by allowing parents to use their adoption expenses to offset their taxes at the end of the year. For example, on your 2006 tax returns, you can claim as much as $10,960 of the cost of your adoption. Expenses that count toward the credit include fees you pay to the adoption agency, the government, and attorneys, as well as travel expenses you incur (such as the cost of traveling to your child’s country to get him or her). Expenses that have been reimbursed by your employer benefit plan, or used for another tax credit or deduction, cannot be claimed under the adoption tax credit. Like anything having to do with the IRS, there are certain rules to follow when claiming the adoption tax credit. For instance, you can only claim the expenses for an international adoption once the process is finalized and the child has become a U.S. citizen. For domestic adoptions that take several years, the expenses leading up to the adoption must be claime
