If you adopted, or attempted to adopt, an eligible child, you may qualify for the Adoption Credit. This nonrefundable tax credit can help offset certain qualified adoption expenses you paid during the adoption process.
For tax year 2026, you must meet several requirements related to your filing status, income, and adoption information.
Who Qualifies for the Adoption Credit?
To claim the Adoption Credit, all of the following generally must apply:
Filing Status Requirements
You must file as one of the following:
- Single
- Head of Household
- Qualifying Surviving Spouse
- Married Filing Jointly
In certain situations, taxpayers filing Married Filing Separately may still qualify. This may apply if:
- You're claiming an adoption credit carryforward from a prior year and filed jointly when the original credit was claimed.
- You lived apart from your spouse for at least the last six months of the tax year.
- The eligible child lived with you for more than half the year.
- You provided more than half the cost of maintaining your home and otherwise meet the IRS requirements for filing separately.
Income Requirements
Your eligibility may be reduced or eliminated if your modified adjusted gross income (MAGI) exceeds certain limits.
For tax year 2026:
- The Adoption Credit begins to phase out once your MAGI exceeds the annual IRS threshold.
- The credit is completely phased out when your MAGI exceeds the upper phaseout limit.
If you're carrying forward an unused Adoption Credit from a prior year, special rules may apply.
Child Information Requirements
You'll need to provide information about the adopted child, including:
- Full name
- Year of birth
- Identifying number
- Date the adoption became final (if applicable)
The identifying number may be:
- A Social Security number (SSN)
- An Adoption Taxpayer Identification Number (ATIN)
- An Individual Taxpayer Identification Number (ITIN)
If the child doesn't yet have an identifying number, you may need to apply for one through the appropriate IRS or Social Security Administration process.
How Much Is the Adoption Credit Worth?
The Adoption Credit is adjusted periodically for inflation. The maximum credit allowed depends on the tax year and your qualified adoption expenses.
The credit is nonrefundable, which means:
- It can reduce your federal income tax liability to zero.
- Any unused credit generally won't increase your refund for the current year.
- Unused credit amounts may be carried forward for up to five years, subject to IRS limitations.
What Expenses Qualify?
Qualified adoption expenses generally include:
- Adoption agency fees
- Attorney fees and court costs
- Travel expenses related to the adoption, including meals and lodging
- Home study fees
- Other direct expenses related to the legal adoption of a child
Expenses for adopting your spouse's child, surrogacy arrangements, or costs reimbursed by an employer or government program generally don't qualify.
Is There an Income Limitation?
The Adoption Credit phases out as income increases.
Because the IRS adjusts these limits annually for inflation, the exact MAGI phaseout range depends on the tax year for which you're filing. If your income falls within the phaseout range, your available credit may be reduced. If your income exceeds the upper limit, you generally won't qualify for the credit.
Our software automatically applies the applicable IRS limits for the tax year you're filing and calculates any allowable Adoption Credit.
Claiming the Adoption Credit
To claim the credit, you'll need to enter your adoption information and qualified expenses. The software will calculate the credit and apply any carryforward amounts from prior years when applicable.
If you're eligible, we'll help you maximize your Adoption Credit and ensure the required information is properly reported on your return.