General Information

1. How much is the adoption tax credit?

For adoptions finalized in 2025 (tax returns claimed in 2026), the maximum amount a family can receive as credit is $17,280 per adopted child.

For adoptions finalized in 2024 (tax returns claimed in 2025), the maximum amount a family can receive as credit is $16,810 per adopted child.

For adoptions finalized in 2023 (tax returns claimed in 2024), the maximum amount a family can receive as credit is $15,950 per adopted child.

As of July 2025, the Adoption Tax Credit is partially refundable and can be claimed during the 2025 tax year. Those finalizing an adoption in 2025, whose federal tax liability is less than the full adoption tax credit ($17,280), are entitled to receive a check for the balance between the maximum allowable credit and a filer's federal-income-tax liability—up to $5,000.

2. What is the difference between a tax credit and a tax deduction?

A tax credit is generally preferable to a tax deduction because a credit is directly subtracted from the tax you owe, while a deduction only reduces the amount of taxable income.

3. When can adoptive parents claim the adoption tax credit?

The timing of claiming the tax credit depends on the type of adoption. Foster care and intercountry adoptions must be final before you can claim the Adoption Tax Credit. In domestic adoption, parents can either file for the credit after the adoption is final or in the tax year following the payment of expenses.

4. How is the credit impacted if a family adopts more than one child during the same tax year?

The adoption tax credit is calculated on a per child basis, so qualifying families who adopt multiple children will have the credit applied on a per child basis.

5. What paperwork from my adoption is needed when I file for the tax credit?

All Adoptions: Final Judgement of Adoption

Adoptions from Foster Care: Subsidy Agreement declaring the child to have special needs according to the criteria of their state

Domestic and Intercountry Adoptions: Home study, receipt of all qualifying expenses

For more information about the Adoption Tax Credit:

Adoption Tax Credit Questions - National Council For Adoption

North American Council on Adoptable Children

Yes, the Adoption Tax Credit is for Foster Care Adoptions by Becky Wilmoth

More Tax Credit Information - Dave Thomas Foundation for Adoption