The Internal Revenue Service is reminding taxpayers who finalized an adoption this year or who started their adoption process before 2025 that they may qualify for the Adoption Tax Credit, adding that changes to the credit come in the wake of One Big Beautiful Bill Act.
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The credit can be claimed for eligible expenses related to international, domestic, private and public foster care adoptions. The maximum Adoption Credit that taxpayers can claim on their 2025 return is $17,280 per eligible child. Among recent changes:
This credit is now partially refundable. The refundable amount is up to $5,000 per qualifying child for tax years 2025 and after, though a non-refundable amount carried forward can’t be used to calculate a refundable portion for future tax years.An eligible child must be younger than 18. If older, the adopted person must be unable to physically or mentally take care of themselves.Indian tribal governments now have the same authority as state governments to determine whether a child has special needs for the purpose of claiming the credit. Taxpayers who adopt an eligible U.S. child with special needs may be able to claim the credit even if they didn’t pay any qualified adoption expenses.
Taxpayers who adopt their spouse’s child can’t claim this credit, nor can taxpayers who carry out a surrogate parenting agreement.
Taxpayers can also use the Interactive Tax Assistant to determine their eligibility.
Eligible expenses include “reasonable and necessary” adoption fees, court costs and legal fees, adoption-related travel expenses such as meals and lodging, and other expenses directly related to the legal adoption of an eligible child.
Expenses may qualify even if the taxpayer pays them before an eligible child is identified. For example, some taxpayers pay for a home study at the beginning of the adoption process. These taxpayers can claim the fees as qualified adoption expenses.
Taxpayers should complete Form 8839, “Qualified Adoption Expenses,” to figure how much credit they can claim.
