What type of tax credit is available for expenses related to adopting a child?

The adoption tax credit is specifically designed to assist families with the costs associated with adopting a child. This credit can cover a variety of expenses related to the adoption process, including adoption fees, court costs, attorney fees, and certain travel expenses. The intention behind this credit is to reduce the financial burden placed on families who are expanding their households through adoption.

Unlike the other types of credits listed, the adoption tax credit is unique in its focus on the adoption process and is not interconnected with overseas taxes (as with the foreign tax credit), dependent children (like the child tax credit), or educational expenses (associated with the education tax credit). It serves a distinct purpose, making adoption more financially accessible for potential parents. This specific benefit illustrates the government's recognition of the importance of fostering families through adoption, thereby supporting the broader social goal of providing children in need with loving homes.