TECHNICAL GLOSSARY

What Is Adoption Assistance?

Adoption Assistance is a program created to help families who have adopted children who meet certain criteria, including special needs and difficulty finding a suitable family. The program provides both financial and support benefits to assist families in reducing the costs associated with adoption and providing ongoing care for the child after the adoption has occurred.
Adoption Assistance may include:

• A monthly stipend (cash payment)
• Reimbursement for expenses that are associated with the adoptive placement of the child
• Medical coverage (generally through Medicaid)
• Counseling and support services.

Eligibility eligibility for adoption assistance benefits varies by state, country, and the child's needs. It is essential that families do thorough research on program guidelines before starting the adoption process. Adoption Assistance Program provides families with the necessary tools to locate and adopt the child in need of a permanent home. The ultimate goal of Adoption Assistance is to find a stable, supportive, loving family for every child that is not being raised by their biological family.

Is Adoption Assistance Taxable?

Adoption Assistance Benefits Tax Treatment

The taxability of Adoption Assistance is based on who provided the benefit and what type of assistance you received.

• Public agency or qualified nonprofit Adoption Assistance is generally not taxable in the United States. Adoption Assistance can be provided and include the following:
• Monthly cash payments
• Payment for Adoption related expenses
• Medical and counseling services

These benefits are generally included in the calculation for your child's eligibility limit under Federal guidelines.

• Employer-provided Adoption Assistance benefits are generally taxable and have to be included in the employee's taxable income, unless specifically excluded from the IRS adoption benefit criteria.

How Long Does Adoption Assistance Last?

The duration of Adoption Assistance benefits is determined by state law and the needs of the child.

• Normally, Adoption Assistance benefits will continue until the child reaches the age of 18.
• Many states allow Adoption Assistance payments to continue until a child with special needs reaches the age of 21.
• Depending upon state law, some states will extend Adoption Assistance benefits when the child is enrolled in a college or vocational training program or has other special circumstances that result in a request for extension of Adoption Assistance.

Each Adoption Assistance Agreement will specify the duration and conditions of continued eligibility for Adoption Assistance benefits.