How do I claim the Adoption Credit in 2025?
The adoption tax benefits provide an incentive for individuals or families to adopt an eligible child. The 2025 maximum dollar amount per eligible child is $17,280. If your expenses were spread over multiple years, you might be able to spread the credit over multiple tax returns (see Who qualifies and What adoption expenses qualify below).
For adoptions finalized in or expenses paid during 2025, the credit is partially refundable.
Refundable portion: Up to $5,000 of the credit is refundable. This means you can receive this amount as a refund, even if you don't owe any federal income tax. This amount is indexed for inflation in future years.
Nonrefundable portion: The remainder of the credit amount (up to a maximum total credit of $17,280 for 2025) is nonrefundable and can be used to reduce your tax liability.
Carryforward: Any unused nonrefundable credit can be carried forward for up to five years to offset future tax liabilities. The refundable portion cannot be carried forward.
Who qualifies for the credit?
Usually, the credit is permitted whether the adoption is domestic or foreign. However, the timing rules for claiming the credit for qualified adoption expenses are different, depending on the kind of adoption.
A domestic adoption is the adoption of a US child (an eligible child who's a citizen or resident of the US or its possessions before the adoption begins). Qualified adoption expenses paid before the year the adoption becomes final are allowed as a credit for the tax year following the year of payment (even if the adoption isn't finalized and even if an eligible child was never identified).
A foreign adoption is the adoption of an eligible child who isn't yet a citizen or resident of the US or its possessions before the adoption effort begins. Qualified adoption expenses paid before and during the year are allowed as a credit for the year when it becomes final.
You have a carryforward of an adoption credit from 2024.
You may receive less than the full amount if some of your adoption expenses are covered by an employer plan or your modified adjusted gross income (MAGI) is over $259,190 (and is phased out at $299,190) for 2025.
What adoption expenses qualify for the credit?
Expenses which qualify for the adoption credit include:
Adoption fees
Attorney fees
Home studies by an authorized placement agency
Court costs
Travel expenses including meals and lodging while away from home
Visas and re-adoption expenses for a foreign child
To claim the adoption tax credit in TurboTax
Open or continue your return.
Navigate to the adoption credit section:
TurboTax Online/Mobile: Go to adoption credit.
TurboTax Desktop: Search for adoption credit and select the Jump to link.
On the Did you pay any adoption expenses in 2025 or earlier? screen, read the information and, if you qualify, answer Yes.
Continue answering questions until the section is completed.
Regarding the adoption tax credit, keep in mind:
If you've adopted the child of your spouse, you can't claim this credit.
The credit usually isn't available if you're Married Filing Separately except under certain circumstances.
Keep receipts for all qualified adoption expenses with your tax records.
