Adoption is a beautiful journey β and the Federal Adoption Tax Credit (ATC) can make it more affordable for families across the U.S.! π Whether youβre pursuing domestic, foster care, or international adoption, this tax credit puts real dollars back in your pocket.
β¨ What you need to know:
π For adoptions finalized in 2025, families can receive up to $17,280 per child as a tax credit. For 2026 adoptions, the credit increases to $17,670.
π Even better: part of the credit is now partially refundable
π The credit covers qualified adoption expenses like agency fees, court costs, legal fees, travel, and more.
π Families with moderate incomes may qualify for the full credit; higher incomes may see a phased amount.
π‘ Pro tip: You donβt need to be a tax expert β but chatting with a tax professional can help ensure you get all the benefits available to you!