Qualified Adoption Expenses [QAE] Law and Legal Definition

Qualified adoption expense [QAE] refers to all the necessary expenses that are incurred for adoption of a child. It includes expenses such as attorney fees and other expenses but it does not include expenses incurred while adopting a spouse's child.

The following is an example of a federal statute defining the term qualified adoption expenses. According to 26 USCS § 36C (d) (1), the term "qualified adoption expenses" means reasonable and necessary adoption fees, court costs, attorney fees, and other expenses:

(A) which are directly related to, and the principal purpose of which is for, the legal adoption of an eligible child by the taxpayer;

(B) which are not incurred in violation of State or Federal law or in carrying out any surrogate parenting arrangement;

(C) which are not expenses in connection with the adoption by an individual of a child who is the child of such individual's spouse, and

(D) which are not reimbursed under an employer program or otherwise.