Adoption Tax Credit Info

Adoption Tax Credit FAQ

What should I do to document that I qualify for this tax credit?
It is important that adoptive parents get and keep receipts for all legitimate adoption expenses. If it is a domestic, non-special needs adoption, the credit is taken in the year the expenses are incurred. Legitimate adoption expenses would include, but are not limited to,Angel Adoption’s fee, attorney fees; agency fees, consultation fees, and legitimate birth parent expenses.

What is the difference between a credit and a deduction?

A credit is an amount that can be deducted directly from the taxes that you owe. It means you can get reimbursed dollar for dollar, unlike a deduction, provided you qualify for the credit.

What if the adoption never finalizes?

Adoptive parents can take the credit even if the adoption does not finalize in a domestic adoption.

Is the adoption tax credit the same as the child tax credit?
No. This credit is separate and in addition to the child tax credit.

Qualifying Expenses
Qualifying adoption expenses are reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging) while away from home,and other expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child.

Nonqualifying expenses

Qualifying adoption expenses do not include expenses:
• That violate state or federal law,
• For carrying out any surrogate parenting arrangement,
• For the adoption of your spouse’s child,
• Paid using funds received from any federal, state, or local program,
• Allowed as a credit or deduction under any other federal income tax rule, or
• Paid or reimbursed by your employer or otherwise (except that amounts paid or reimbursed under an adoption assistance program may be qualifying expenses for the exclusion).

** Please remember to contact your tax specialist to see if you qualify for the Adoption Tax Credit. IRS Tax Credit Information:

To get started on qualifying for the Adoption Tax Credit, fill out this Free Adoption Application today!


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