What is the maximum amount allowed for adoption assistance?

The correct answer is based on the limits set by the Internal Revenue Service (IRS) for adoption assistance. For the tax year 2023, the maximum adoption assistance benefit is indeed $13,840 per child. This amount applies to both employer-sponsored adoption assistance programs and the adoption tax credit that can be claimed on an individual's tax return.

Adoption assistance can help mitigate the costs associated with adopting a child, which can include expenses like legal fees, court costs, and other related expenditures. The amount can sometimes be adjusted for inflation and may vary each year, but understanding the current limit is crucial for individuals and employers involved in or offering adoption assistance programs.

This value is particularly significant for those planning to utilize financial assistance for adoption, as it provides considerable support and may influence decisions regarding family planning and budgeting for such life changes. Knowing this figure aids in planning and executing adoption financially while adhering to IRS guidelines.