The Adoption Credit is a partially refundable federal tax credit that helps taxpayers offset the costs of adopting a child. The refundable portion is up to $5,000. The unused portion can be carried forward for up to five years.
Qualified adoption expenses may be claimed even if the adoption is not finalized, depending on the type of adoption and the year the expenses were paid
The program will calculate the allowable credit based on your expenses, income, and any prior‑year carryforward amounts you enter.
🧾 What Expenses Qualify?
You can claim the credit for reasonable and necessary adoption expenses, such as:
- Adoption agency fees
- Court costs and legal fees
- Travel, meals, lodging while away from home
- Home study and dossier preparation
- Re-adoption expenses (for international adoptions)
The fllowing expenses do not qualify:
- Employer reimbursements
- Adopting a spouse’s child
- Birth parent's living expenses or temporary foster care costs
- Costs paid by state or federal programs
- Surrogate costs
👶 Who Qualifies?
You may qualify if:
- You adopted a child who is not your spouse’s biological child
- You paid out-of-pocket for qualifying adoption expenses
- You adopted a child with special needs (you may qualify for the full credit even without expenses if you have a state-issued subsidy agreement)
💰 How Much Is the Credit?
- For 2025 tax returns, the maximum credit is $17,280 per child
- The credit is partially refundable, but unused amounts can be carried forward
- Income limits apply:
- Full credit: MAGI up to $259,190
- Partial credit: MAGI between $259,190 and $299,190
- No credit: MAGI over $299,190
🛠️ How to Claim It
- File IRS Form 8839 with your tax return
- Include documentation such as:
- Final adoption decree
- Receipts for expenses
- Home study or placement agreement
- ATIN (Adoption Taxpayer Identification Number) if the child doesn’t have a Social Security number