Adoption Assistance Account
Adopting a child can be an exciting, fulfilling experience. Unfortunately, it can also be expensive. With an Adoption Assistance account, you can get reimbursed with pre-tax dollars for reasonable and necessary expenses that you incur in the process of legally adopting an eligible child, including adoption fees, court costs, attorney fees, and related travel costs.
To qualify for an Adoption Assistance Account, your adopted child must be younger than 18 years old or physically or mentally incapable of caring for himself or herself.
For 2021, the maximum amount of reimbursement that you may receive in connection with the adoption of any one child is $14,440 (adjusted for inflation each year). This is a total rather than an annual amount, even if the expenses occur over a period of years.
Expenses that are not eligible for reimbursement include expenses incurred in violation of state or federal law, expenses incurred in carrying out a surrogate parenting arrangement, and expenses in connection with the adoption of a stepchild.