United States
"Federal Adoption Tax Credit"

What is the Adoption Tax Credit ?

The federal adoption tax credit is a nonrefundable tax credit meant to provide you relief for the qualified costs you pay when adopting a child.

How Does Adoption Tax Credit Work ?

Tax benefits for adoption include both a tax credit for qualified adoption expenses paid to adopt eligible child & exclusion for employer-provided adoption assistance.

Who Qualifies for Adoption Tax Credit ?

Individual taxpayers who pay or incur qualified adoption expenses are eligible for an adoption tax credit. The credit is not available for adoptions of stepchildren.

Adoption Tax Credit Income Limit

For 2023, if your MAGI is $239,230 or less, you qualify for the full credit. The credit phases out as your income increases & goes away completed when it exceeds $279,230.


Eligible Children For Adoption Tax Credit

Those who are age 18 or younger and a child of any age who is US citizen or resident alien and is physically or mentally incapable of caring for themselves.

How Much is the Adoption Tax Credit ?

The adoption tax credit is indexed for inflation. The maximum credit amount allowed for adoptions is $14,890 per child for 2022 and $15,950 for 2023.

What are Qualified Adoption Expenses ?

Qualified expenses include adoption fees, court and legal fees, adoption related travel costs & other expenses directly related to legal adoption of an eligible child.

How to Claim the Adoption Tax Credit ?

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To claim credit, complete Form 8839 and attach it to your Form 1040. Taxpayers must note whether the child has special needs or is foreign-born.