adoption reimbursement

You can be reimbursed up to $20,000 for eligible adoptions finalized after January 1, 2020*. The adopted child must be under 18 years of age, unless they’re mentally or physically unable to care for themselves. The child may be biologically related to you or your spouse/domestic partner, but you cannot be reimbursed for expenses relating to guardianship or custody of your own child.

Expenses eligible for reimbursement* Private and public adoption agency and placement fees Legal fees, court costs and birth certificate fee The child’s medical expenses unless they are covered by another medical plan Temporary foster care expenses that are required by the state before the child is placed Fees related to immigration, immunization and translating documents prepared in other languages Travel expenses related to the adoption if the child is born in another city or state and you need to travel to pick the child up. This could include transportation (such as coach or economy airfare, but not first-class airfare) and lodging for up to seven days before the child is born (up to $200 per day) Costs associated with a state-required home study

Expenses not eligible for reimbursement Voluntary donations such as a contribution to an adoption agency Charges covered under your medical plan or your spouse’s/domestic partner’s medical plan Expenses already reimbursed under your spouse’s/domestic partner’s adoption plan Guardianship or custody costs that are not associated with the legal adoption of the child Expenses incurred by the birth mother or costs related to a surrogate mother Expenses for services not yet performed or for a child not yet placed in your home Expenses incurred before or after you are eligible to participate in the program Charges that are in violation of federal or state law Mileage for travel to a doctor’s office or lawyer’s office Meal costs incurred before the child is born Costs for car seats, strollers, books, toys, cribs, pool covers, fire extinguishers and other items a parent may buy, regardless of whether the child is adopted

*Reimbursement amount is $5,000 for adoptions finalized before January 1, 2020.

You can request reimbursement once for each child — after the child is placed in your home with approval from the State or, for an international adoption, after the adoption is finalized either in the country of origin or the United States.

1. Complete the Adoption Reimbursement Request form.
   NOTE: When filing a reimbursement request, include copies of all adoption-related receipts to show expenses that have been paid, as well as agency documentation or court orders related to the adoption. If an adoption decree from another country is submitted, it must be fully translated in English and submitted in U.S. dollars.
2. Sign and email the completed form to worklife@chevron.com.
3. If you adopt more than one child, you should complete a separate form should be for each child.

Your paperwork will be reviewed and, if approved, your reimbursement will be coordinated with U.S. payroll to be included as part of your regular pay. This process takes about six weeks from the date you submit the form. Reimbursement requests must be submitted within 180 days following the adoption. Reimbursement requests submitted 180 days or after the adoption are not eligible for reimbursement.

As you welcome your new child into your home, you may be eligible for time off as follows:

• Up to eight weeks of paid time off under the Bonding benefit.
• Up to six months of unpaid Family Leave.

You have 31 days from the date of adoption or placement for adoption to add your child to your Chevron benefits, including medical coverage. Coverage is not automatic. If you miss this deadline, you must wait until the next open enrollment period or another qualifying life event to enroll your child. In addition, when you enroll your new child in Chevron health coverage, you will be required to timely complete the dependent verification process. Learn more about adding your new child to Chevron benefits.

You may be able to exclude some or all of your reimbursed adoption expenses from your federal taxable income. Federal income tax generally will not be withheld from your reimbursement. This means that if some of your reimbursements are taxable, you may not have enough withholding, which could subject you to penalty taxes. In this case, you may want to request additional federal withholding from your pay or make estimated tax payments to the Internal Revenue Service (IRS). Your reimbursement is also subject to Social Security withholding and state taxes, where applicable.

You may be eligible for a federal tax credit for adoption expenses that are not reimbursed by this Program. The credit begins to phase out if your modified adjusted gross income exceeds a specified amount and is completely phased out if your modified adjusted gross income exceeds a specified amount. These limits are adjusted each year for inflation. You can find information on the federal tax credit and gross income dollar amounts at www.irs.gov.

This summary describes only some of the tax rules that apply to adoption assistance benefits. There are other rules that may affect your tax treatment. For example, the tax credit and exclusion for certain expenses may be available in different years and may not be available for foreign adoptions that are never finalized.

Before you request reimbursement of adoption expenses from Chevron, you should consult a tax advisor to see if it may be more advantageous to take the tax credit than it is to be reimbursed. You cannot claim the tax credit for any expense that is reimbursed.