If you're carrying forward an unused adoption credit from a previous tax year, it's important to know that the credit limits and income phaseout rules are based on the year the credit originally arose, not the year you claim the carryforward.
For example, if your unused adoption credit came from 2022, you must use the 2022 adoption credit limits and income phaseout amounts when determining your remaining carryforward. The current year's limits do not apply to that carryforward.
Also, if you didn't pay any additional qualified adoption expenses in a later year for the same adoption or adoption attempt, you can't increase the amount of your carryforward.
| Tax Year | Maximum Adoption Credit | MAGI Phaseout Range |
|---|---|---|
| 2026 | $17,670 | $265,080 - $305,080 |
| 2025 | $17,280 | $259,190 - $299,190 |
| 2024 | $16,810 | $252,150 - $292,150 |
| 2023 | $15,950 | $239,230 - $279,230 |
| 2022 | $14,890 | $223,410 - $263,410 |
| 2021 | $14,400 | $216,660 - $256,660 |
| 2020 | $14,300 | $214,520 - $254,520 |
| 2019 | $14,080 | $211,160 - $251,160 |
| 2018 | $13,810 | $207,140 - $247,140 |
| 2017 | $13,570 | $203,540 - $243,540 |
| 2016 | $13,460 | $201,920 - $241,920 |
| 2015 | $13,400 | $201,010 - $241,010 |
| 2014 | $13,190 | $197,880 - $237,880 |
| 2013 | $12,970 | $194,580 - $234,580 |
| 2012 | $12,650 | $189,710 - $229,710 |
| 2011 | $13,360 | $185,210 - $225,210 |
| 2010 | $13,170 | $182,520 - $222,520 |
| 2009 | $12,150 | $182,180 - $222,180 |
| 2008 | $11,650 | $174,730 - $214,730 |
| 2007 | $11,390 | $170,820 - $210,820 |
How the Phaseout Works
The adoption credit begins to decrease when your modified adjusted gross income (MAGI) reaches the lower end of the phaseout range for the applicable year. Once your MAGI reaches the upper limit of the range, you're no longer eligible for that year's adoption credit.
When calculating a carryforward, always use the limits that applied in the year the credit was first generated.
For further information, see IRS Topic 607.