What is the purpose of the Adoption Credit?

The purpose of the Adoption Credit is to provide a financial benefit to families that incur expenses related to the adoption of a child. This credit helps offset the significant costs associated with adoption, which can include legal fees, agency fees, court costs, and other adoption-related expenses. By offering this tax credit, the government aims to encourage adoption and alleviate some of the financial burdens that families face during the adoption process.

In contrast, the other options pertain to different areas of financial assistance. Buying a home, supporting education, and retirement savings are important financial goals, but they do not align with the specific purpose of the Adoption Credit, which focuses explicitly on the financial aspects of adopting a child. This differentiation is crucial for understanding the targeted intent of various tax credits available to taxpayers.