One special and important possibility where agreement between the parties can override disputes and delays is a cooperative adoption.
No. Josh Kroll of the North American Council on Adoptable Children (NACAC) informed me that the IRS told him the tax credit was non-reportable income and would not be taxed. He added, however, that some states might see the money as a reason to cut back on food stamps and other related programs. He said this would not be a problem if the money were spent for the child's subsistence within a reasonable time.