Adoption tax credit

Adoption tax credit

The Adoption tax credit is a non-refundable tax credit offered by the United States federal government to help offset the costs of adoption.

Pronunciation

• Adop-tion tax cred-it

Etymology

The term "Adoption tax credit" is derived from the English words "adoption" (from the Latin 'adoptio', meaning 'to choose'), "tax" (from the Latin 'taxare', meaning 'to assess') and "credit" (from the Latin 'creditum', meaning 'a thing entrusted to another').

Definition

The Adoption tax credit is a specific type of tax credit that is provided to adoptive parents to help offset the costs of adoption. It is non-refundable, meaning it can reduce a taxpayer's liability to zero, but any remaining credit does not result in a refund. The credit amount varies each year and can be claimed for each child adopted, whether via public foster care, domestic private adoption, or international adoption.

Related Terms

• Tax credit
• Adoption
• Federal income tax
• Tax liability
• Internal Revenue Service

See Also

• Child Tax Credit
• Earned Income Tax Credit
• Tax Deduction

References

• Internal Revenue Service. (n.d.). Adoption Credit and Adoption Assistance Programs. Retrieved from https://www.irs.gov/taxtopics/tc607

External links

• Medical encyclopedia article on Adoption tax credit
• Wikipedia's article - Adoption tax credit

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