DoD Adoption Expense Reimbursement

Service members on active duty, including Reserve Component members who are called to active duty for 180 or more consecutive days are eligible to request reimbursement for qualifying adoption expenses related to adoption of a child under 18 years of age.

Service members may request reimbursement up to $2,000 per adoptive child or a maximum of $5,000 per calendar year for qualifying expenses.

Adoptions that qualify for reimbursement include adoptions by a single person, an infant adoption, an intercountry adoption, and an adoption of a child with special needs, as long as the adoption is arranged by a qualified adoption agency.

Qualifying adoption expenses include reasonable and necessary expenses that are directly related to the adoption, which include placement fees, legal fees and court costs, certain medical expenses, and temporary foster care fees (when required by the adoption process). Travel costs are not reimbursable.

Benefits are paid after the adoption is final.

Members may be able to receive a tax credit of up to $5,000 for qualifying expenses paid while adopting an eligible child. The credit may be as much as $6,000 if the expenses are for the adoption of a child with special needs.

Qualified adoption expenses are reasonable and necessary 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, and whose principal purpose is for, the legal adoption of an eligible child.

The credit is not available for stepparent adoptions or for expenses that are reimbursed under an employer’s program or expenses paid using funds received from any federal, state, or local program.