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What is the taxation status of Adoption Assistance according to IRS exclusion rules?

Taxable

Partially taxable

Non-taxable

Adoption Assistance is considered non-taxable according to IRS exclusion rules. This means that the funds received as adoption assistance are not subject to federal income tax. This exclusion is beneficial for adoptive parents as it helps reduce their overall tax burden, making it easier for them to cover the costs associated with adopting a child.

Taxable if exceeding a specific amount

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