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February 9, 2025
Question

Are monthly stipends for a disabled child that was adopted counted as nontaxable income?

  • February 9, 2025
  • 1 reply
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    1 reply

    LindaS5247
    February 10, 2025

    Monthly stipends for adopted children are not taxable income. The IRS has ruled that adoption assistance benefits are not included in the taxable income of the adoptive parents. 

     

    However, any expenses paid by the stipend can not be included for purposes of claiming the adoption credit.
     

    Click here for information on the Adoption Tax Credit for 2024-2025.

     

    Click here for additional information on the Adoption Credit.

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