2000 Tax Help Archives  

Publication 15b 2000 Tax Year

Adoption Assistance

This is archived information that pertains only to the 2000 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

You can exclude payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment taxes. For more information, see Publication 968, Tax Benefits for Adoption.

Caution:

This exclusion does not apply to adoption assistance paid or adoption expenses incurred after 2001.


Employee. For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power.

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