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The IRS Adoption Tax Credit offers financial relief to eligible taxpayers who adopt a child, with a maximum benefit of $17,670 per qualifying child for tax year 2026. The credit can cover certain adoption-related expenses, including legal fees, court costs and travel.
One important change is that part of the credit is now refundable. This means eligible taxpayers may receive up to $5,120 per child as a refund, even if they do not owe federal income taxes. However, the full $17,670 is not automatically paid to every family, and eligibility depends on the adoption, expenses and household income.
How much is the IRS Adoption Tax Credit in 2026?
For tax year 2026, the maximum Adoption Tax Credit is $17,670 per eligible child. The amount available generally depends on the qualified adoption expenses paid or incurred, subject to the applicable rules.
The credit is divided into two parts:
- Refundable portion: Up to $5,120 per qualifying child. This amount may be paid as part of a tax refund, even when the taxpayer has no federal income tax liability.
- Nonrefundable portion: The remaining eligible credit can reduce the federal income tax owed, but it cannot generate a refund by itself. Any unused amount may be carried forward for up to five years.
The refundable portion is particularly important for families who have little or no federal income tax liability. It allows them to receive a payment that would not be available through a nonrefundable credit alone.
Still, $5,120 is the maximum refundable amount, not a guaranteed payment. The final benefit depends on the taxpayer’s eligibility and the amount of credit they can claim.
Who qualifies for the $17,670 adoption credit?
To qualify, taxpayers must meet the IRS requirements for an eligible adoption and child. The child must be under 18 years old or physically or mentally incapable of caring for themselves.
Qualified adoption expenses may include:
- Adoption agency fees.
- Attorney fees and court costs.
- Travel expenses, including meals and lodging while away from home.
- Other expenses directly related to the legal adoption.
- Certain expenses paid before an eligible child is identified, such as home-study fees.
The credit applies to eligible domestic and international adoptions, including private and public foster-care adoptions. Special rules determine the tax year in which expenses can be claimed, depending on whether the adoption is domestic or international and whether it has been finalized.
There is also a specific rule for special-needs adoptions. If a state agency or an Indian tribal government determines that the child qualifies as having special needs under federal tax rules, the family may claim the maximum credit even if it did not pay qualified adoption expenses.
Income limits for the 2026 tax year
The Adoption Tax Credit is subject to income limits based on modified adjusted gross income (MAGI):
| MAGI for tax year 2026 | Credit eligibility |
|---|---|
| $265,080 or less | Full credit available |
| $265,081 to $305,079 | Credit gradually reduced |
| $305,080 or more | Not eligible |
Taxpayers who are married generally must file a joint return to claim the credit, although the IRS provides exceptions for certain circumstances.
How to claim the IRS Adoption Tax Credit
Eligible taxpayers must complete Form 8839, Qualified Adoption Expenses, and attach it to their federal income tax return.
The form is used to calculate the adoption credit and report information about the eligible child. The IRS accepts a Social Security number, an Adoption Taxpayer Identification Number (ATIN) or an Individual Taxpayer Identification Number (ITIN), as applicable.
Those claiming the refundable portion must also complete Schedule 3-A (Form 1040), as instructed by the IRS. It is important to keep adoption-related documentation and receipts in case the agency requests supporting information.
Families who receive adoption assistance from an employer may also qualify for an income exclusion of up to $17,670 in 2026 through a qualified employer program. However, the same expenses cannot be used both for the exclusion and for the adoption credit.