The federal Adoption Tax Credit is a one-time non-refundable tax 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 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. Learn how to advocate for the Adoption Tax Credit to return to refundability.