If you adopt an eligible child, you can claim the Adoption Credit on your federal income taxes for up to $16,810 in qualified expenses for 2024. If you receive adoption benefits from your employer, you can also exclude up to $16,810 of those benefits from your income.

Jan 18, 2022 · Taxpayers who adopted or started the adoption process in 2021 may qualify for the adoption credit. This credit can be applied to international, domestic private, and public foster care adoption. Taxpayers who adopt their spouse's child can't claim this credit.

Jan 23, 2023 · The adoption tax credit lets families who were in the adoption process during 2022 claim up to $14,890 in eligible adoption expenses for each eligible child. Taxpayers can apply the credit to international, domestic, private and public foster care adoptions.

Oct 29, 2024 · The federal adoption tax credit is slightly higher for 2024. Here's how much you can claim under the tax break designed to help you grow your family.

Jan 15, 2025 · In this updated guide to understanding the adoption tax credit, we explain what the ATC is, how it is different from a tax deduction, how it works, and what the eligibility and qualifying expenses are.

Jan 24, 2023 · The adoption tax credit is available for qualified expenses paid out-of-pocket in relation to an adoption that meets certain eligibility criteria. The IRS provides a phaseout range based on modified adjusted gross income (MAGI) for this tax credit, which is $223,410 to $263,410 for tax year 2022.

Feb 5, 2025 · In the U.S., 100,000 children are adopted every year – that’s one in 35 children. 1 If you are considering growing your family through adoption, two key tax breaks are available that can help eligible parents offset the costs. In 2025, adoptive parents may claim a federal tax credit for up to $17,280 of “qualified adoption expenses” for each child, an increase from $16,810 in …

Jan 15, 2025 · 1. How does the adoption tax credit work? Does it increase potential refund or does it just help pay anything that adoptive parents might owe? The Adoption Tax Credit covers taxpayers’ tax liability up to the maximum amount of the credit.

Jan 12, 2025 · The Federal Adoption Tax Credit provides financial relief for families navigating the adoption process by offering a non-refundable tax credit to offset substantial costs. This credit aims to ease the financial burden and support the goal of providing stable homes for children.

The tax code provides an adoption credit of up to $15,950 for qualified adoption expenses in 2023. The credit is available for each child adopted, whether via public foster care, domestic private adoption, or international adoption.