Copyright © 1998, 2003 by Cynthia Teeters. All rights reserved. 

Medical Insurance

Federal legislation makes it illegal for most employer-supplied medical insurance policies to discriminate against a newly adopted child. To obtain coverage you are required to notify your insurance carrier within 30 days after receiving custody of your child.

Many companies have realized that it makes good relations to assist employees who are building families through adoption and to give reimbursements to help with the major financial burden which most often accompanies adoption. Up to $10,000 paid or reimbursed by your emplo yer for qualifying adoption expenses under an adoption assistance program may be excludable from your gross income.If you are blessed with working for such an enlightened company, you will definitely wish to look into receiving this benefit. If you do not work for such a company, you may be interested in how others have approached their company's senior management and have won adoption benefits for themselves and other coworkers.

You may be able to take a tax credit of up to $10,000 for qualifying expenses paid to adopt an eligible child. The adoption credit is an amount that you subtract from your tax liability. Qualifying expenses include adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to te adoption, which must be finalized before a tax credit can be claimed.