Adoption Assistance*

If you decide to adopt a child, Avista is here to support you.

Through the Adoption Assistance Program, you can receive reimbursement for up to $2,000 per adopted child in qualified adoption-related expenses. You must provide the employer with reasonable substantiation that payments or reimbursements made under the plan constitute “qualified” adoption expenses.

“Qualified” adoption expenses are reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging) while away from home, and other expenses directly-related to, and whose principal purpose is for, the legal adoption of an eligible child.

Qualifying adoption expenses do not include expenses:

  • That violate state or federal law,
  • For carrying out any surrogate parenting arrangement,
  • For the adoption of your spouse’s child,
  • Paid using funds received from any federal, state, or local program,
  • Allowed as a credit or deduction under any other federal income tax rule, or
  • Paid or reimbursed by your employer or otherwise (except that amounts paid or reimbursed under an adoption assistance program may be qualifying expenses for the exclusion).

An “eligible child” is defined as any individual who, at the time a qualified adoption expense is paid or incurred, is under the age of 18 or is physically or mentally incapable of caring for himself or herself.

Learn about the IRS adoption credit and employer-provided adoption assistance programs.

Tax Considerations

Because the determination of how to take maximum advantage of the tax credit versus the employer exclusion can be complicated, it is strongly advised that you seek consultation with a tax advisor even before submitting expenses for employer reimbursement under this plan.

You will need to decide to what extent you want to submit expenses for employer reimbursement versus using the tax credit. Generally the tax credit is more favorable because, unlike an employer reimbursement, it is not subject to FICA tax. However, most employees with adoption expenses will probably want to submit at least some expenses for employer reimbursement after taking maximum advantage of the tax credit. Again, it is strongly advised that you seek consultation with a tax advisor even before submitting expenses for employer reimbursement under this plan.

*Temporary employees are not eligible for this benefit.