Qualified adoption expenses (QAE)

Qualified adoption expenses (QAE),

Definition of Qualified adoption expenses (QAE):

  1. An expense that covers fees such as court fees, attorney fees, adoption fees and other fees involved in the legal adoption of a child by an individual. It does not include fees paid when adopting a partners child.

  2. Qualified adoption expenses are the necessary costs paid to adopt a child younger than 18 years of age or any disabled person who requires care. In the United States, qualified adoption expenses (QAE) are those expenses 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.

  3. The Internal Revenue Service allows you to offset your tax bill with a credit for your qualified adoption expenses, as long as you meet certain eligibility requirements. To report your qualified adoption expenses, you'll use IRS Form 8839.

Meaning of Qualified adoption expenses (QAE) & Qualified adoption expenses (QAE) Definition