Federal tax credits from the IRS are available to adoptive parent(s) in the amount of $16,810 (2024) for qualified adoption expenses.  The numbers are subject to change, and adoptive parents should check the IRS website here or consult with an accountant for the most up-to-date information.

Remember to keep all adoption related receipts for monetary transactions that are directly related to your child/ren's adoption.

In addition, a few individual states, businesses, and health care insurance plans also offer additional financial benefits to adoptive parents.

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If your employer provides adoption assistance, you can exclude up to $16,810 of those benefits from your taxable income.

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Both the credit and the income exclusion are available for international, domestic, private, and public foster care adoptions.

 

Please note: This credit is nonrefundable, which means it can reduce your tax liability to zero, but you won’t receive any excess amount as a refund.

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