Select the correct answer the smith family adopted a child. the adoption procedure took about three months, and the family incurred various expenses. will the smiths receive and 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
E. They will receive several tax deductions
Certain "reasonable and necessary" adoption related expenses are quantifiable for tax deductions, such as:Court costsAttorney's fees Traveling expenses related to the adoption Certain other costs directly related to the adoption process
Yes, the Smith family will receive financial benefits for the taxable year. When you adopt a child, there are parts of the adoption process that are tax write offs for the family. Depending on the money spent, the different fee's paid and what all went into the adoption certain parts will be a tax credit they can apply and use as a deduction. Most of the time the expenses have to be at or over a percentage of your income.
or C they will recieve childcare grants
i hope this helps