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Qualified Adoption Expenses (QAE)

What is 'Qualified Adoption Expenses - QAE'

The necessary costs paid to adopt a child younger than 18 years of age or any disabled person who requires care. Qualified adoption expenses (QAE) are those that the Internal Revenue Service (IRS) defines as reasonable and necessary, including adoption fees, court costs, attorney fees, travel costs and other expenses directly related to the adoption. These fees can be used to claim an adoption credit or exclusion that reduces the adopting parents' taxable income.

Explaining 'Qualified Adoption Expenses - QAE'

Eligible taxpayers use IRS form 8839 to provide the information required to claim the adoption credit on their federal tax returns. Taxpayers must provide the adopted child's first and last names, year of birth and identifying number. They must also note whether the child has special needs or was foreign born and attach the required adoption documents. The tax credit for QAE phases out for taxpayers whose modified adjusted gross incomes exceed a certain threshold. Taxpayers may not claim the adoption credit for any fees paid or reimbursed by an employer or government program. They also may not claim the credit when adopting a spouse's child.


Further Reading


The Inequitable Tax Benefits of Adoption
heinonline.org [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

Quality assurance and evaluation (QAE) in Scotland: promoting self‐evaluation within and beyond the countryQuality assurance and evaluation (QAE) in Scotland: promoting self‐evaluation within and beyond the country
www.tandfonline.com [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

Tax Implications of New Legislation Designed to Provide Adoption IncentivesTax Implications of New Legislation Designed to Provide Adoption Incentives
heinonline.org [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

MORTGAGE MELTDOWN REVEALS IMPORTANCE OF FINANCIAL LITERACY EDUCATION.MORTGAGE MELTDOWN REVEALS IMPORTANCE OF FINANCIAL LITERACY EDUCATION.
search.ebscohost.com [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

Solidarity Finance: A History of an Emerging PracticeSolidarity Finance: A History of an Emerging Practice
books.google.com [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

Quality assurance and evaluation in DenmarkQuality assurance and evaluation in Denmark
www.tandfonline.com [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …

Sustainability Strategies for Nonprofit Organizations During General Economic DownturnsSustainability Strategies for Nonprofit Organizations During General Economic Downturns
scholarworks.waldenu.edu [PDF]
… First, § 23 allows a tax credit to adopting parents to help discharge "qualified adoption expenses" (QAE), which include reasonable and … that are otherwise reimbursed to the adoptive parents, such as through an adoption assistance program,62 do not qualify, nor do 55 …



Q&A About Qualified Adoption Expenses (QAE)


Who can claim QAE?

Eligible taxpayers use IRS form 8839 to provide the information required to claim the adoption credit on their federal tax returns. Taxpayers must provide the adopted child's first and last names, year of birth and identifying number. They must also note whether the child has special needs or was foreign born and attach the required adoption documents. The tax credit for QAE phases out for taxpayers whose modified adjusted gross incomes exceed a certain threshold. Taxpayers may not claim the adoption credit for any fees paid or reimbursed by an employer or government program. They also may not claim the credit when adopting a spouse's child.

What does it mean to phase out?

Phase out means that there is a limit on how much you can receive in benefits based on your income level.

What is the QAE?

Qualified Adoption Expenses (QAE) are those that the Internal Revenue Service (IRS) defines as reasonable and necessary, including adoption fees, court costs, attorney fees, travel costs and other expenses directly related to the adoption.

What do you need to attach with your return?

You need to attach all of your adoption paperwork with your return in order to get this tax benefit. This includes all receipts from payments made during that year as well as any proof of payment such as checks written or copies of cancelled checks showing money going towards these expenses during that year .

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