Help with Expenses Dependency Exemption

Adoption
Expenses

State Laws and Fees

Before Coming Home

Immediate Needs

Legal Costs

Legal Challenges

Help with
Expenses

Financial Resources

Tax Credit

Dependency Exemption

Employee Benefits

Family/Medical Leave

Military Subsidies

Sliding-Scale Fees

Taxes on Assistance

Loans

Dependency Exemption

Adoptive parents may take the same dependency exemption on their income taxes for their adopted children, and 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.

More about Help with Expenses