The federal Adoption Tax Credit is a one-time credit available for families that adopt a child. The amount of the credit varies each year, and different rules apply depending on the type of adoption: domestic infant, foster care, or international.
Families that adopt a child with special needs from foster care, which means any child that receives a monthly subsidy (90%+ of children adopted from foster care), do not have to have paid anything for their adoption in order to get the tax credit. With both domestic infant and international adoption, adoptive parents must be able to document qualified adoption expenses.
The federal Adoption Tax Credit was a refundable credit for 2010 and 2011 but is no longer refundable.
Creating a Family has many resources on the Adoption Tax Credit. A few we think you will find particularly helpful are:(annual guide/blog post)
- Adoption Tax Credit 2019 Course (1 hr downloadable online course featuring tax experts)
- Adoption Tax Credit 2019 Guide (annual guide/blog post)
- Adoption Tax Credit: How to Find the Expert You Need (blog post)
- 10 Tips for Claiming the Adoption Tax Credit (blog post)
- Top Ten Tips for Avoiding Delays When Filing for the Adoption Tax Credit (fact sheet)
Many more Creating a Family radio interviews with experts, videos, blogs, fact sheets, and Q and A’s with Experts on the Adoption Tax Credit can be found at the icons below.
**Keep in mind that income taxes are individual and complex. The information provided here is not a substitute for professional financial advice and should not be relied upon without consulting your tax advisor.