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. The credit and the exclusion apply to international, domestic, private or public foster care adoptions. The credit is nonrefundable, so you can’t get back more than you owe in taxes. On this page Who’s eligible Qualified expenses Exclude expenses from income Figure the credit Claim the credit Rules for U.S. children with special needs Eligibility You are eligible for the Adoption Credit if you meet these criteria: Your modified adjusted gross income is $252,150 or less in 2024. The credit is reduced for incomes between $252,151 and $292,150 and unavailable if your income exceeds $292,150. If married, you must file jointly to claim the credit. Exceptions exist for married filing separately, and 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. A “qualified child” for the Adoption Credit must be: Under age 18, or Physically or mentally incapable of self-care. For special needs adoptions, a child qualifies if they: Are a U.S. citizen, Cannot return to their parents’ home, and Are unlikely to be adopted without assistance. Check if you’re eligible. Qualified expenses Qualified adoption expenses for the credit and exclusion are reasonable and necessary expenses you paid to adopt include: Adoption fees Attorney fees Court costs Travel expenses including meals and lodging Other expenses directly for the legal adoption Expenses you paid before an eligible child has been identified, 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 Exclude expenses from income 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 $16,810 from your income in 2024 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 tax credit. Instructions for Form 8839 (2023) Employer-Provided Adoption Benefits Employer's Tax Guide to Fringe Benefits, Publication 15-B Figure the credit and exclusion amounts The credit amount applies to each adoption of a child, not each calendar year. If you claim expenses in more than one year for the same adoption effort, you must subtract past credit amounts you claimed from your remaining credit. Example: You claimed a $3,000 adoption credit last year and paid $16,810 in expenses this year. You can claim a credit of only $13,810 in 2024 ($16,810 less the $3,000 credit you previously claimed). The income exclusion is in addition to the credit, but you can’t claim both for the same expenses. 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 2024, 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 adopt a child deemed by your state to be special needs or hard to place, you may be able to take the income exclusion even if your employer didn’t pay qualified expenses. Claim the credit 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 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. Use Form W-7A, Application for Adoption Tax Identification Number for Pending U.S. Adoptions PDF (Instructions PDF), to receive an ATIN. Leave blank any entries you can’t complete yet in Part 1, columns C, D or E. If any of these columns are blank, file a paper return. Keep the adoption documentation with your records. The credit is limited to the amount of tax you owe each year. You may carry unused credit amounts to 5 future years. 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. If you claimed the credit and we reject or reduce it, you can consider appealing it. When to claim the credit Domestic adoptions: Claim expenses each year as you incur them, whether you finalize the adoption or identify an eligible child. Foreign adoptions: Claim expenses once the adoption is final. When it’s final, you can claim all eligible expenses you paid, including in past years. Adoption of children deemed by a state welfare agency as special needs or hard to place: Claim expenses when the adoption is final. Find examples of these timing rules to claim a credit in the Instructions for Form 8839. You can also carry unused credits to 5 future years if: It’s from the year you were first eligible for the credit and you filed a joint return. Rules for U.S. children with special needs A child with special needs is a U.S. citizen or resident when the adoption began and a U.S. state determines the child: Can't or shouldn't be returned to their parents’ home Is not likely to be adopted without assistance to the adoptive family. Find examples of state-determined special needs in Instructions for Form 8839. If you adopt a child with special needs, you may be able to claim: The full 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. Reduce your credit for: Expenses you claimed for the same child in prior years Your modified adjusted gross income Related Form 8839, Qualified Adoption Expenses Instructions for Form 8839 Adoption Taxpayer Identification Number
