The short answer
The adoption credit helps pay qualified adoption expenses for an eligible child. The maximum is $17,280 per child for 2025 and $17,670 per child for 2026, reduced for higher incomes. Starting in 2025, part of the credit is refundable — up to $5,000 per child for 2025 and $5,120 for 2026 — so you can receive it even if you owe little or no tax. The rest reduces your tax and can be carried forward for up to 5 years. You claim it on Form 8839.
2025 and 2026 amounts
| 2025 | 2026 | |
|---|---|---|
| Maximum credit per eligible child | $17,280 | $17,670 |
| Refundable portion per child (maximum) | $5,000 | $5,120 |
| Phase-out begins (modified AGI) | $259,190 | $265,080 |
| No credit at or above (modified AGI) | $299,190 | $305,080 |
| Maximum employer benefit exclusion per child | $17,280 | $17,670 |
The 2025 figures are from the 2025 Instructions for Form 8839; the 2026 figures are from Rev. Proc. 2025-32. The maximum is the total of the refundable and nonrefundable parts, not an extra amount on top.
Who is an eligible child
- Under age 18. A child who turned 18 during the year counts for the part of the year before their birthday.
- Any age if physically or mentally unable to take care of themselves.
Qualified adoption expenses
| Included | Not included |
|---|---|
| Adoption fees | Expenses paid with federal, state, or local program funds |
| Attorney fees and court costs | Adopting your spouse's child |
| Travel, including meals and lodging, while away from home | Surrogate parenting arrangements |
| Re-adoption expenses for a foreign child | Expenses reimbursed by an employer or anyone else, or that violate the law |
When to claim it: domestic vs. foreign adoption
| When you paid the expenses | U.S. child (domestic) | Foreign child |
|---|---|---|
| Any year before the adoption becomes final | Claim in the year after the year you paid | Claim in the year the adoption becomes final |
| The year the adoption becomes final | Claim that year | Claim that year |
| Any year after the adoption becomes final | Claim in the year you paid | Claim in the year you paid |
A child counts as a U.S. child if they were a U.S. citizen or resident (including U.S. territories) when the adoption effort began. For a U.S. child, the credit can be allowed even if the adoption never becomes final.
Children with special needs
A child has special needs only if all three are true: the child was a U.S. citizen or resident when the adoption effort began; a state or Indian tribal government determined the child cannot or should not return to the parents' home; and it determined the child will not be adopted unless assistance is provided. For a final adoption of a child with special needs, you may claim the full credit for that child even if you paid little or no qualified expenses. Keep evidence of the government's determination.
Refundable part, nonrefundable part, and carryforward
- Refundable part: figured separately for each child, up to the yearly limit, and reported on Form 1040.
- Nonrefundable part: limited by your tax, reported on Schedule 3.
- Carryforward: any unused nonrefundable credit carries forward for up to 5 years or until used, oldest first, and is then forfeited. A carryforward is nonrefundable, with one exception below.
- 2025 carryforward adjustment: the IRS says Treasury clarified that, for tax year 2025 only, carryforwards from 2020–2024 available in 2025 may be included in figuring the refundable portion. The refundable portion is still limited to $5,000 per eligible child in total, including the current year's credit. The 2025 forms will not be updated; the IRS is adjusting accounts it can identify from 2025 returns and account records, starting in late September 2026, and sends a notice. Do not file an amended return just to get this adjustment. But it is not automatic for everyone: if your 2025 return did not report the carryforward or lacked enough information, you may need to file Form 1040-X with Form 8839. Any increase reduces the carryforward left for 2026, and it does not make carryforwards refundable in 2026.
- 2026 Schedule 3-A (draft): IRS Topic No. 607 says that for 2026 you must complete Schedule 3-A (Form 1040), Federal Public Benefit, to claim the refundable adoption credit, and the draft 2026 Form 1040 has a line for it. On the draft schedule, the refunded amount is removed only if neither you nor your spouse is a U.S. citizen, U.S. national, or qualified alien. At the time of this review the schedule and the 2026 Form 1040 were drafts, and the related Treasury regulations published in August 2026 (REG-119882-25) were proposed, not final; they would apply only once final. No final regulation or final 2026 form establishing this requirement had been issued; the final 2026 figures in this guide (such as the $5,120 refundable limit) come from Rev. Proc. 2025-32.
Who can claim it
- Filing status: single, head of household, qualifying surviving spouse, or married filing jointly — with a limited exception for married people who lived apart.
- Income: modified AGI below the "no credit" amount, unless you are only claiming a carryforward.
- Child information: report the child's details on Form 8839, Part I.
Example (2025, from the Form 8839 instructions)
In 2025, a family paid $20,000 of qualified expenses for an eligible child, and the adoption became final in 2025. The credit is limited to $17,280. They claim $5,000 as a refundable credit and, based on their tax, $10,000 as a nonrefundable credit. The remaining $2,280 carries forward as a nonrefundable credit for up to 5 years. The other $2,720 of expenses above the $17,280 limit can never be claimed.
Common mistakes
- Claiming domestic expenses in the year paid instead of the following year when the adoption is not yet final.
- Claiming a foreign adoption before it becomes final.
- Double-counting expenses your employer reimbursed.
- Assuming a carryforward is refundable in years other than the 2025 adjustment.
- Losing receipts for travel, legal, and agency fees.
- Missing the special needs rule for a child adopted from foster care with a state determination.
Unsuccessful adoptions, adoptions spanning several years, multiple children, and employer benefits paid in a year before the adoption is final can make the calculation complex. State adoption credits are separate.