Adoption Credit

You are eligible for the Adoption Credit if you meet these criteria:

• You have qualified adoption expenses for an eligible child. An exception applies for special needs adoptions, see below.
• Your eligible child is:
  • Under age 18, or
  • Physically or mentally incapable of self-care.
• Your modified adjusted gross income (MAGI) is within income limits. Income limits for tax year 2026:
  • $265,080 or less – the full amount of the credit is available to claim. 
  • $265,081 to $305,079 - the credit is available but reduced.
  • 305,080 or more - the credit is unavailable.
• If married, generally you must file jointly to claim the credit. However, there is an exception for married persons not filing jointly if certain criteria is met; you can amend past returns to change your filing status if needed.
• You may qualify if you're a registered domestic partner in a state that allows second-parent adoption. However, you cannot claim the credit for expenses related to adopting your spouse’s child.

Use the Interactive Tax Assistant to see whether you qualify to claim the Adoption Credit.

Qualified adoption expenses are reasonable and necessary expenses you paid to adopt, including:

• Adoption fees
• Attorney fees
• Court costs
• Travel expenses (including meals and lodging) while away from home
• Other expenses directly related to, or for the principal purpose of, the legal adoption
• Expenses paid before identifying an eligible child, such as home study fees

Expenses that don’t qualify for the credit 

Expenses aren’t eligible if they are:

• To adopt your spouse’s child
• For a surrogate parent arrangement
• Allowed for another federal tax credit or deduction
• Paid by a federal, state or local program
• Reimbursed by your employer
• Violate state or federal law

State and Indian tribal governments determine whether a child has special needs for the purpose of claiming the Adoption Credit.

For special needs adoptions, a child qualifies if they:

• Are a U.S. citizen or resident, and
• A state or Indian tribal government has determined the child:
  • Can't or shouldn't be returned to their parents’ home, and
  • Is not likely to be adopted without assistance to the adoptive family.

Acceptable documentation of the state or Indian tribal government’s determination of special needs includes, but is not limited to:

• An adoption assistance or subsidy agreement issued by the state, tribal court or tribal government representative
• Certification from the state, county or tribal welfare agency, or tribal government verifying that the child is approved to receive adoption assistance
• Certification from the state, county, tribal welfare agency, or tribal government verifying that the child has special needs
• An official letter on state, county, or tribal government letterhead confirming the special needs determination

Find examples of state and Indian tribal government determinations of special needs in the Instructions for Form 8839, Qualified Adoption Expenses.

If you adopt a child with special needs, you may be able to claim:

• The full income exclusion, even if your employer didn’t pay expenses (if your employer has a written qualified adoption assistance program)
• The full credit even if you didn't pay any qualified adoption expenses

Find examples of these timing rules to claim the credit in the Instructions for Form 8839, Qualified Adoption Expenses.

If your employer provides adoption benefits for qualified expenses, you may not have to include those benefits in your income, which means you may not have to pay taxes on them. You can exclude up to $17,670 from your income in 2026 if your employer paid you those benefits:

• Under a written qualified adoption assistance program
• Directly or through a third party

You can find these payments on your Form W-2, Box 12, Code T, or your salary may have been reduced to pay these benefits.

Subtract this employer-provided benefit from your income before you calculate the Adoption Credit. See Employer-Provided Adoption Benefits for more information.

If you claim expenses in more than one year for adoption of the same child (final or in progress), you must subtract past credit amounts you claimed from your remaining credit.

Example: You claimed a $3,000 Adoption Credit in 2025 for expenses incurred in 2024 for the adoption of a child that was not finalized during that year.  In 2026, you paid $17,670 for additional expenses related to the adoption of the same child, which was finalized during the year.  Since you are claiming expenses related to the adoption of the same child and have already claimed a $3,000 Adoption Credit in past years, you can only claim a credit of $14,670 in 2026 ($17,670 less the $3,000 credit you previously claimed).

You must claim any allowable exclusion before claiming any allowable credit. To do this, complete Part III of Form 8839 before you complete Part II.

Example: In 2026, you paid $10,000 in qualified adoption expenses, and your employer reimbursed you for $4,000. You can exclude $4,000 from your income. Your maximum credit is $6,000 ($10,000 less the $4,000 employer reimbursement).

If you have a special needs  adoption (previously defined), you may be able to take the income exclusion even if your employer didn’t pay qualified expenses.

To claim the Adoption Credit or exclusion:

• Complete Form 8839, Qualified Adoption Expenses, and attach the form to your tax return.
• Report the required information about the eligible child or children on Form 8839, Part I. 
  • The child’s identifying number can be their Social Security number, adoption taxpayer identification number (ATIN) or individual taxpayer identification number (ITIN). 
  • To request an ATIN, use Form W-7A PDF, Application for Adoption Tax Identification Number for Pending U.S. Adoptions (Instructions PDF). 
  • Note: See Instructions for Form 8839 if you can’t give complete information about an eligible child you tried to adopt in prior years because the adoption was either unsuccessful or wasn’t final by the end of 2026. 
• If you adopted or tried to adopt more than three eligible children, fill in and attach as many Forms 8839 as needed to list them.

Keep the adoption documentation for your records.

Amend an incorrect return 

If you claimed an incorrect credit amount, file an amended return. You can check the status of an amended return around 3 weeks after you submit it. You should generally allow 8 to 12 weeks for your Form 1040-X to be processed.

Appeal an IRS decision 

If the IRS rejects or reduces your claim, you can appeal it.