| 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 adoption 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, obtain a copy of Publication 968
from the Internal Revenue Service. You can download this publication from the IRS website
by clicking here. Or
to receive the publication by regular mail, call 1-800-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.
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