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Originally Posted By Mack

My employer will donate $3,000 toward my adoption expenses. Will the government take this into account & reduce my tax credit to $7,000?
Thanks for the help!

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Originally Posted By Andrea

I'm not positive but from what I understand, the 3,000 is included as income, ( so you may have to pay tax on it), but you should get the full 10,000 credit...hope this was helpful

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Originally Posted By davis

Your company identifies the 3000 on your W-2 in block 12. When you are filling out your Tax Form 8839, there is a portion that deals with the amount your company contributed. Basically, as long as your AGI is under 75,000 you will not have to pay taxes on the 3000 company reimbursement. It is also separate from the 10000 credit the govt pays.

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Originally Posted By chieffan9

Mack,
Andrea and Davis are right in that the gov't. will not deduct it from the $10,000 that they are giving you. However, I believe that whether or not you have to pay taxes on the $3,000 depends on how your employer has their program set up. Some employers have themselves set up as an approved program, and I don't believe you have to include this as income. However, many companies have not done this, and you will definitely have to include this $3,000 as income. I would check with your HR department and ask them if they know whether or not you have to include it as income.