What tax benefit is provided for adoption expenses?

The Adoption Tax Credit is designed to offer financial relief for individuals and couples who incur expenses while adopting a child. This credit directly offsets the tax liability, allowing taxpayers to reduce the amount they owe to the government based on qualifying adoption-related expenses. The credit can cover a wide range of costs, including adoption fees, court costs, attorney fees, and other necessary expenses that arise during the adoption process.

As a nonrefundable credit, it can be particularly beneficial for taxpayers in lower income brackets or those who have adopted children from foster care, as the amount can help to alleviate the financial burden of adoption.

The other options, such as child support deductions, dependent care benefits, and estate tax exemptions, do not pertain to adoption costs or benefits. Child support is not tax-deductible for the payer, and dependent care benefits are aimed at assisting parents with the costs associated with childcare, while estate tax exemptions relate to property inheritance tax matters. Thus, the Adoption Tax Credit stands out as the specific benefit related to adoption expenses.