What is the age limit for a child to be considered eligible for the adoption credit or exclusion?

The adoption credit or exclusion applies to eligible children under the age of 18 at the time of adoption. This age limit is established to define which children qualify for specific tax benefits related to adoption expenses, as these benefits are intended to assist families that are bringing children into their homes and providing for their upbringing. The adoption credit allows adoptive parents to recover certain costs associated with the adoption process, while the exclusion can apply to qualified adoption expenses.

The age limit ensures that the focus remains on younger children, who are more commonly subjects of adoption processes, and emphasizes support for families during the formative years of a child's life. It reflects the sincere effort of tax policy to promote family growth and stability by easing the financial burden for families who adopt children from care systems, orphanages, or through other legal means.