The Adoption Tax Credit

After you adopt you are eligible for a tax credit from federal income tax for qualifying expenses. Federal law contains an income exclusion for an employer adoption assistance program. The maximum credit for adoptions finalized in 2019 is up to $14,080, and you should consult with a tax professional to determine how the adoption tax credit can be applied to your situation.

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

The tax credit may also apply even if you experience a failed or disrupted adoption.