Adoption Tax Credit:

Tax Credit

If you adopt an eligible child, you may claim the Adoption Credit on your federal income taxes for up to $16,810 in qualified expenses for 2024. The tax credit and exclusion apply to international, domestic, private or public foster care adoptions. Check if you’re eligible. 

IRS Revenue Procedure 2025-32 (For adoptions finalized in 2026)

The IRS has issued Revenue Procedure 2025-32 which announced the tax brackets, deductions, and credits that are adjusted annually to reflect inflation.

For adoptions finalized in 2026 the maximum Federal Adoption Tax Credit will be $17,670 (up from $17,280) per child and the maximum credit will begin to be phased out when the adoptive parents’ Modified Adjusted Gross Income (MAGI) for 2026 is greater than $265,180, and the adoptive parents will not be entitled to any credit if their MAGI is equal to or greater than $305,080 for 2026.

The refundable portion for 2026 is $5,120, up from $5,000 for adoptions finalized in 2025.

To learn more, please visit the official IRS website here.

Please be advised that Mark R. Iverson, P.S. does not provide tax advice. Please contact your personal accountant to see whether you qualify for the Adoption Credit.