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Internal Revenue Code of 1986

The main body of federal tax laws in the United States.

Tax Credit

A direct reduction in the amount of income tax a person or company owes. It is different from a tax deduction, which only reduces the amount of income subject to tax.

Refundable Tax Credit

A type of tax credit that can result in a tax refund for the taxpayer, even if the amount of the credit is greater than the taxes they owe.

Non-refundable Tax Credit

A type of tax credit that can reduce a taxpayer's tax liability to zero, but any portion of the credit exceeding the tax owed is not refunded to the taxpayer.

Special Needs Children (for adoption)

Children who are difficult to place for adoption due to factors such as age, sibling group status, race/ethnicity, medical conditions, or physical/mental disabilities, as determined by a state.

Taxable Year

The annual accounting period used for calculating income taxes, usually a calendar year (January 1 to December 31).

Qualified Adoption Expenses

Eligible expenses directly related to the legal adoption of a child, such as adoption fees, court costs, attorney fees, and travel expenses.