 Adoptive Parents may take the same dependency exemption on their income taxes for their adopted children, as well as children placed with them for adoption but not yet
finalized, as they would for their biological children. The exemption reduces their taxable income. The amount of the dependent exemption is adjusted annually to reflect the cost
of living.
The main point to remember is that families must provide more than half of their children's support to list them as exemptions. (Some adopted children come with
subsidies, which may provide more than half of their support. For example, if a child receives $5,000 a year in subsidies, the adoptive family must provide $5,001 or more a year
to claim the child as an exemption.)
For information about when the credit can be taken, special needs adoptions and more, please consult your adoption attorney and financial analyst, or visit the
IRS online and download official publications
Email or call 1-800-FOR-ADOPT in confidence!
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"Thank you again from the bottom of our hearts. God was obviously listening when he sent us to you."
- Ed & Susan
