Adoption Support at Yale

Eligible Employees: You are an “Eligible Employee” if you are (i) a faculty member who regularly works 50% or more of the required full-time workload or (ii) a Managerial & Professional staff member or Police Supervisor/Police Command Staff member who regularly works 20 hours or more per week. (iii) as of January 1, 2013, Clerical & Technical, Service & Maintenance and Security staff members who regularly work 20 hours or more per week are eligible for this benefit for adoptions finalized on or after January 1, 2013. An Eligible Employee does not include post-doctoral/graduate fellow, casual employee, temporary employee, any individual whose employment is incidental to his or her educational or training program, or employees whose terms of employment are the subject of collective bargaining unless the collective bargaining agreement specifies eligibility.

Eligible Child: An “Eligible Child” is any individual who, at the time the Qualified Adoption Expenses are paid, is under the age of 18 or is physically or mentally incapable of caring for him or herself and is being adopted by an Eligible Employee. An Eligible Child may include a blood relative or a child or blood relative of your spouse, same sex spouse, civil union partner, or domestic partner.

“Qualifying Adoption Expenses” are reasonable and necessary adoption related expenses (as defined in Section36C(d)(1) of the Internal Revenue Code), and currently include:

• Domestic and foreign agency and placement fees;
• Counseling fees associated with the placement and initial adjustment;
• Immigration, immunization, and translation fees;
• Temporary foster care provided before placement of the Eligible Child in your home;
• Home inspections costs;
• Medical expenses paid  on behalf of the Eligible Child prior to adoption that are not otherwise covered by insurance; and
• Travel expenses (including amounts expended for meals and lodging while away from home)
• Qualifying Adoption Expenses do not include the following expenses:
• Expenses paid while not an Eligible Employee
• Expenses paid in violation of state or federal law;
• Expenses paid in carrying out any surrogate parenting arrangement;
• Expenses for establishing legal guardianship;
• Expenses paid for the routine care of an Eligible Child;
• Expenses reimbursed under another program; and
• Expenses claimed as a credit on your personal tax return.

Tax Exclusion or Tax Credit?

This tax information described is this Section is not intended to give specific tax or legal advice; the information provided is a summary of the current tax laws as they apply to the Program.  The tax laws regarding the adoption tax credit are complicated and they affect different individuals in different ways.  A professional tax advisor is your best source of information about whether you should seek reimbursement of Qualifying Adoption Expenses from the Program or claim the tax credit.  You may also obtain further information from IRS Form 8839, Qualified Adoption Expenses and its instructions that can be obtained from the IRS website.