What are the qualifications for the adoption credit?

To qualify for the 2023 Adoption Credit, the following must be true:

1. Your filing status is single, head of household, surviving spouse, or married filing jointly. Exception: The Married Filing Separate status may be used if:
   • You are claiming a carryforward amount and you filed a joint return in the year the original credit was claimed
   • You have resided apart from your spouse for at least 6 months of the tax year.
   • The eligible child resided with you for more than half the year.
   • Both 2 and 3 (below) are true and you lived apart from your spouse for the last 6 months of the tax year, the child lived with you for more than half of the tax year, and you provided more than half the cost of keeping up your home.
2. Your modified adjusted gross income (MAGI) is less than $279,230 (begins to phase out at $239,231) or you have a carryforward of an adoption credit from 2022.
3. You are able to provide the information required about the child. These include the name, year of birth, child's identifying number and the date the adoption became final. The identifying number can be a social security number, the adoption taxpayer identification number or an individual tax identification number. If the child does not have an identifying number, you can apply for a number using Form SS-5 (Social Security Number), Form W-7A (US Citizen or resident alien that cannot get a SSN) or form W-7 (Not a US Citizen or resident alien).

How much is the Adoption Credit?

The maximum credit amount for 2023 is $15,950 per child. The credit is nonrefundable, which means it's limited to your tax liability for the year. However, the credit can be carried forward for up to five years.

Is there an income limitation?

For tax year 2023, the MAGI phaseout begins at $239,231 and ends at $279,229.

For tax year 2022, the MAGI phaseout begins at $223,410 and ends at $263,410.

For tax year 2021, the MAGI phaseout begins at $216,660 and ends at $256,660..

For tax year 2020, the MAGI phaseout begins at $214,520 and ends at $254,520. Thus, if your MAGI amount is below $214,520 for 2020, your credit or exclusion won't be affected by the MAGI phaseout. If your MAGI amount for 2020 is $254,520 or more, your credit or exclusion will be zero. Income levels between these amounts will qualify for a reduced credit. 

Additional Information

• Instructions for form 8839 
• Tax Topic 607 Adoption Credit and Adoption Assistance Programs