Question

The Smith family adopted a child. The adoption procedure took about three months, and the family incurred various expenses. Will the Smiths receive any financial benefit for the taxable year?

A they will not receive any financial benefit for adopting the child
B their income tax component will decrease
C they will receive childcare grants
D they will receive a tax credit for the cost borne for adopting the child
E they will receive several tax deductions

Answer 1

D they will receive a tax credit for the cost borne for adopting the child
or C they will recieve childcare grants
i hope this helps

Answer 2

E. They will receive several tax deductions

Step-by-step explanation:

Certain "reasonable and necessary" adoption related expenses are quantifiable for tax deductions, such as:

• Court costs
• Attorney's fees
• Traveling expenses related to the adoption
• Certain other costs directly related to the adoption process